As filed with the Securities and Exchange Commission
on October 8, 2024
Registration No. 333-
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933
VSEE HEALTH, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of
incorporation or organization) |
|
86-2970927
(I.R.S. Employer
Identification No.) |
VSee Health, Inc.
980 N Federal Hwy #304
Boca Raton, FL 33432
(Address of principal executive offices)
(561) 672-7068
(Registrant’s telephone number, including
area code)
VSee Health, Inc. 2024 Equity Incentive
Plan
(Full title of the plan)
| Milton Chen and Imoigele Aisiku |
| VSee Health, Inc. |
| Co-Chief Executive Officers |
| 980 N Federal Hwy #304 |
| Boca Raton, FL 33432 |
| (561) 672-7068 |
| (Name, address and telephone number of agent |
| for service) |
| |
| Copies to: |
| Thomas J. Poletti, Esq. |
| Veronica Lah, Esq. |
| Manatt, Phelps & Phillips, LLP |
| 695 Town Center Drive, 14th Floor |
| Costa Mesa, CA 92626 |
| Email: tpoletti@manatt.com |
| Telephone: (714) 371-2501 |
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.
See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company”
and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| |
Large accelerated filer |
¨ |
Accelerated filer |
¨ |
| |
Non-accelerated filer |
x |
Smaller reporting company |
x |
| |
|
|
Emerging growth company |
x |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ¨
PART I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
The documents containing the
information specified in this Part I of Form S-8 will be sent or given to participants in the VSee Health, Inc. 2024 Equity
Incentive Plan (the “Plan”) as specified by Rule 428(b)(1) under the Securities Act of 1933, as amended (the “Securities
Act”).
Such documents are not required
to be, and are not, filed with the Securities and Exchange Commission (the “SEC”) either as part of this Registration Statement
or as a prospectus or prospectus supplement pursuant to Rule 424 under the Securities Act. These documents and the documents incorporated
by reference in this Registration Statement pursuant to Item 3 of Part II of Form S-8, taken together, constitute a prospectus
that meets the requirements of Section 10(a) of the Securities Act.
| Item 2. | Registrant Information and Employee Plan Annual Information. |
VSee Health, Inc., a
Delaware corporation (the “Company”) will furnish without charge to each person to whom the prospectus is delivered, upon
the written or oral request of such person, a copy of any and all of the documents incorporated by reference into this Registration Statement
pursuant to Item 3 of Part II hereof, other than exhibits to such documents (unless such exhibits are specifically incorporated by
reference in such documents that are incorporated), and the other documents required to be delivered to eligible participants in the Plan
pursuant to Rule 428(b) under the Securities Act. Requests should be directed to:
VSee Health, Inc.
980 N Federal Hwy, Suite 340
Boca Raton, FL 33432
Attention: Corporate Secretary
Telephone: (561) 672-7068
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
| Item 3. | Incorporation of Documents by Reference. |
The Registrant hereby incorporates by reference
into this Registration Statement the following documents filed by it with the SEC:
| (a) | The Registrant’s prospectus filed with the SEC on July 26, 2024 pursuant to Rule 424(b) under
the Securities Act relating to the Registration Statement on Form S-1 (File No. 333-280845), which became effective on July 26,
2024 (the “S-1 Prospectus”), which contains the Company’s audited financial statements for the latest fiscal year for
which such statements have been filed. |
| | | |
| | (b) | The Registrant’s Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024, filed with the SEC on May 15, 2024 and
September 23, 2024, respectively. |
| | | |
| | (c) | The Registrant’s Current
Reports on Form 8-K filed with the SEC on February 5, 2024, February 13, 2024, April 18, 2024, May 2, 2024, June 12, 2024, June 28, 2024, July 9, 2024, July 23, 2024, September 11, 2024, September 23, 2024, and October 1, 2024. |
| | | |
| | (d) | The
description of the Registrant’s securities that is contained in the S-1 Prospectus, including any amendment or supplements thereto. |
All documents subsequently
filed by the Registrant with the SEC pursuant to Sections 13(a), 13(c), 14, or 15(d) of the Exchange Act after the date hereof, and
prior to the filing of a post-effective amendment which indicates that all securities offered hereby have been sold or which deregisters
all securities then remaining unsold, shall be deemed incorporated by reference into this Registration Statement and to be a part thereof
from the date of the filing of such documents. Any statement contained in the documents incorporated, or deemed to be incorporated, by
reference herein or therein shall be deemed to be modified or superseded for purposes of this Registration Statement and the prospectus
to the extent that a statement contained herein or therein or in any other subsequently filed document which also is, or is deemed to
be, incorporated by reference herein or therein modifies or supersedes such statement. Any such statement so modified or superseded shall
not be deemed, except as so modified or superseded, to constitute a part of this Registration Statement and the prospectus.
Under no circumstances shall
any information furnished under Item 2.02 or 7.01 of Form 8-K be deemed incorporated herein by reference unless such Form 8-K
expressly provides to the contrary.
| Item 4. |
Description of Securities |
Not applicable.
| Item 5. |
Interests of Named Experts and Counsel. |
Not applicable.
| Item 6. |
Indemnification of Directors and Officers. |
The Registrant is incorporated
under the laws of the State of Delaware.
The Registrant is governed
by the Delaware General Corporation Law, as the same exists or may hereafter be amended (the “General Corporation Law”). Section 145
of the General Corporation Law (“Section 145”) provides that a Delaware corporation may indemnify any person who was
or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of such corporation) by reason of the fact that such person is
or was a director, officer, employee or agent of such corporation, or is or was serving at the request of such corporation as a director,
officer, employee or agent of another corporation or enterprise. The indemnification may include expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action,
suit or proceeding, provided such person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to
the corporation’s best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe that
his conduct was unlawful. Section 145 also provides that a Delaware corporation may indemnify any person who was or is a party or
is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of such corporation, under
the same conditions, except that such indemnification is limited to expenses (including attorneys’ fees) actually and reasonably
incurred by such person, and except that no indemnification is permitted without judicial approval if such person is adjudged to be liable
to such corporation. Where an officer or director of a corporation is successful, on the merits or otherwise, in the defense of any action,
suit or proceeding referred to above, or any claim, issue or matter therein, the corporation must indemnify that person against the expenses
(including attorneys’ fees) which such officer or director actually and reasonably incurred in connection therewith.
Section 145 further authorizes
a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation,
or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or enterprise,
against any liability asserted against such person and incurred by such person in any such capacity, or arising out of such person’s
status as such, whether or not the corporation would otherwise have the power to indemnify such person against such liability under Section 145.
The Registrant’s Second
Amended and Restated Certificate of Incorporation provides that the Registrant has the power to provide rights to indemnification and
advancement of expenses to its current and former officers, directors, employees and agents and to any person who is or was serving at
the request of the Registrant as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other
enterprise.
The Registrant’s Amended
and Restated Bylaws provide that the Registrant shall indemnify any person who was or is a party or is threatened to be made a party to
any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than
an action by or in the right of the Registrant) by reason of the fact that such person is or was a director or Registrant of the Registrant,
or, while a director or officer of the Registrant, is or was serving at the request of the Registrant as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, against expenses (including
attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection
with such action, suit or proceeding if such person acted in good faith and in a manner such person reasonably believed to be in or not
opposed to the best interests of the Registrant, and, with respect to any criminal action or proceeding, had no reasonable cause to believe
such person’s conduct was unlawful. The Registrant shall not be obligated to indemnify any current or former director or officer
in connection with an action, suit proceeding initiated by such person unless such action, suit or proceeding was authorized by the Board
of Directors.
The Registrant’s Second
Amended and Restated Certificate of Incorporation provides that no director or officer of the Corporation shall have any personal liability
to the Registrant or its stockholders for monetary damages for any breach of fiduciary duty as a director or officer, except to the extent
such exemption from liability or limitation thereof is not permitted under the General Corporation Law. Pursuant to Section 102(b)(7) of
the General Corporation Law, a corporation may eliminate the personal liability of a director to the corporation or its stockholders for
monetary damages for breach of fiduciary duty as a director, except for liabilities arising (i) from any breach of the director’s
duty of loyalty to the corporation or its stockholders, (ii) from acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of law,(iii) under Section 174 of the General Corporation Law, or (iv) from any transaction
from which the director derived an improper personal benefit.
Indemnification Agreements
The Registrant has entered
into agreements with its directors providing indemnification of such directors by the Registrant to the fullest extent permitted by law,
subject to certain limited exceptions. These agreements provide that the Registrant will indemnify each of our directors to the fullest
extent permitted by Delaware law. The Registrant will advance all expenses incurred by the indemnified director (“Indemnitee”)
in connection with any proceeding to which the Indemnitee is a party or is threatened to be made a party by reason of the fact that the
Indemnitee is or was an agent of the Company or by reason of anything done or not done by the Indemnitee in any such capacity.
Directors’ and Officers’ Liability Insurance
The Registrant’s directors
and executive officers are covered by insurance maintained by the Registrant against specified liabilities for actions taken in their
capacities as such, including liabilities under the Securities Act.
| Item 7. |
Exemption From Registration Claimed. |
Not applicable.
A. The undersigned Registrant
hereby undertakes:
(1) To file, during any period in which
offers or sales are being made, a post-effective amendment to this registration statement:
(i) To include any prospectus
required by section 10(a)(3) of the Securities Act;
(ii) To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes
in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of
Registration Fee” table in the effective registration statement; and
(iii) To include any material
information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to
such information in the registration statement.
Provided,
however, that paragraphs A(1)(i) and A(1)(ii) do not apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the Registrant pursuant to section
13 or section 15(d) of the Exchange Act that are incorporated by reference in the registration statement.
(2) That, for the
purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.
(3) To remove from registration by means
of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
B. The undersigned Registrant
hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the Registrant’s annual
report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing of an employee
benefit plan’s annual report pursuant to section 15(d) of the Exchange Act) that is incorporated by reference in the registration
statement shall be deemed to be a new registration statement relating to the securities offered herein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
C. Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant
to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Commission such indemnification
is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling
person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements of the Securities
Act, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8
and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Boca Raton, State of Florida, on October 8, 2024.
| |
VSEE HEALTH, INC. |
| |
|
| |
By: |
/s/ Imoigele Aisiku |
| |
Name: |
Imoigele Aisiku |
| |
Title: |
Co-Chief Executive Officer |
POWER OF ATTORNEY
We, the undersigned officers and directors of
VSee Health, Inc., do hereby constitute and appoint Milton Chen and Imoigele Aisiku, and each of them, as his/her true and lawful
attorneys-in-fact and agents, with full power of substitution for him in any and all capacities, to sign any and all amendments (including
post-effective amendments) to this Registration Statement, and to file the same, with all exhibits thereto, and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all
intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or
any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act, this Registration
Statement has been signed by the following persons in the capacities and on the dates indicated.
| Name and Signature |
|
Title |
|
Date |
| |
|
|
|
|
| /s/ Milton Chen |
|
Co-Chief Executive Officer and Director
(Principal Executive Officer) |
|
October 8, 2024 |
| Milton Chen |
|
|
|
| |
|
|
|
|
| /s/ Imoigele Aisiku |
|
Co-Chief Executive Officer, Chairman, Director
(Principal Executive Officer) |
|
October 8, 2024 |
| Imoigele Aisiku |
|
|
|
| |
|
|
|
|
| /s/ Jerry Leonard |
|
Chief Financial Officer and Secretary
(Principal Financial and Accounting Officer) |
|
October 8, 2024 |
| Jerry Leonard |
|
|
|
| |
|
|
|
|
| /s/ Kevin Lowdermilk |
|
Director |
|
October 8, 2024 |
| Kevin Lowdermilk |
|
|
|
|
| |
|
|
|
|
| /s/ Colin O’Sullivan |
|
Director |
|
October 8, 2024 |
| Colin O’Sullivan |
|
|
|
|
| |
|
|
|
|
| /s/ Scott Metzger |
|
Director |
|
October 8, 2024 |
| Scott Metzger |
|
|
|
|
| |
|
|
|
|
| /s/ Cydonii V. Fairfax |
|
Director |
|
October 8, 2024 |
| Cydonii V. Fairfax |
|
|
|
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|
|
|
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| /s/ David L. Wickersham |
|
Director |
|
October 8, 2024 |
| David L. Wickersham |
|
|
|
|
Exhibit 5.1
October 8, 2024
VSee Health, Inc.
980 N Federal Hwy #304
Boca Raton, FL 33432
| Re: |
Registration Statement on Form S-8 |
| |
2,544,021 Shares of Common Stock, par value $0.0001 per share |
Ladies and Gentlemen:
We have acted as counsel
to VSee Health, Inc., a Delaware corporation (the “Company”), in connection with the preparation and filing of
a Registration Statement on Form S-8 (the “Registration Statement”) under the Securities Act of 1933, as amended
(the “Securities Act”), for the registration by the Company of 2,544,021 shares of common stock, par value $0.0001
per share, of the Company (the “Shares”) issuable under the VSee Health, Inc. 2024 Equity Incentive Plan (the
“Plan”). This opinion is being furnished in connection with the requirements of Item 601(b)(5) of Regulation S-K
under the Securities Act.
As
such counsel and for purposes of our opinions set forth below, we have examined originals or copies, certified or otherwise identified
to our satisfaction, of such documents, resolutions, certificates and instruments of the Company and corporate records furnished to us
by the Company, certificates of public officials, statutes, records and such other instruments and documents as we have deemed necessary
or appropriate as a basis for the opinion set forth below.
In
such examination and in rendering the opinions expressed below, we have assumed, without independent investigation or verification: (i) the
genuineness of all signatures on all agreements, instruments, corporate records, certificates and other documents submitted to us, (ii) the
legal capacity and authority of all persons or entities (other than the Company) executing all agreements, instruments, corporate records,
certificates and other documents submitted to us, (iii) the authenticity and completeness of all agreements, instruments, corporate
records, certificates and other documents submitted to us as originals, (iv) that all agreements, instruments, corporate records,
certificates and other documents submitted to us as certified, electronic, facsimile, conformed, photostatic or other copies conform to
authentic originals thereof, and that such originals are authentic and complete, (v) the due authorization, execution and delivery
of all agreements, instruments, certificates and other documents by all parties thereto (other than the Company), (vi) that the statements
contained in the certificates and comparable documents of public officials, officers and representatives of the Company and other persons
on which we have relied for the purposes of this opinion set forth below are true and correct, and (vii) that the officers and directors
of the Company have properly exercised their fiduciary duties. We also have obtained from the officers of the Company certificates as
to certain factual matters necessary for the purpose of this opinion and, insofar as this opinion is based on such matters of fact, we
have relied solely on such certificates without independent investigation. We have also assumed that the Shares will be issued and sold
as described in the Registration Statement and the applicable provisions of the Plan.
Based
upon and subject to the foregoing qualifications, assumptions and limitations, we are of the opinion that the Shares have been duly authorized
and, when issued and delivered against payment therefor in conformity with the terms of the Plan, assuming in each case that the individual
issuance, grants or awards under the Plan are duly authorized by all necessary corporate action and duly issued, granted or awarded and
exercised in all accordance with the requirements of the law and the Plan, will be validly issued, fully paid and non-assessable.
We
express no opinion as to the applicability or effect of any laws, orders or judgments of any state or other jurisdiction other than the
General Corporation Law of the State of Delaware (including the statutory provisions and all applicable provisions of the Delaware Constitution
and reported judicial decisions interpreting those laws). This opinion is expressly limited to the matters set forth above and we render
no opinion, whether by implication or otherwise, as to any other matters relating to the Company or the Shares.
VSee Health, Inc.
October 8, 2024
Page 2
We
hereby consent to the filing of this opinion with the Securities and Exchange Commission (the “Commission”) as an exhibit
to the Registration Statement and the use of our name therein under the caption “Legal Matters.” In giving this consent, we
do not admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and
regulations of the Commission adopted under the Securities Act.
The
opinions included herein are expressed as of the date hereof unless otherwise expressly stated, and we disclaim any undertaking to advise
you of any subsequent changes in the facts stated or assumed herein or of any subsequent changes in applicable laws.
| |
Very truly yours, |
| |
/s/ Manatt, Phelps & Phillips, LLP |
| |
Manatt, Phelps & Phillips, LLP |
2049 Century Park East, Suite 1700, Los Angeles,
California 90067 Telephone: 310.312.4000 Fax: 310.312.4224
Albany | Boston | Chicago | Los Angeles | New
York | Orange County | Palo Alto | Sacramento | San Francisco | Washington
Exhibit 23.2
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
We hereby consent to the incorporation by
reference in the Prospectus constituting a part of this Registration Statement on Form S-8 of our report dated April 12, 2024, which includes an explanatory paragraph
regarding to Digital Health Acquisition Corp.’s ability to continue as a going concern, relating to the financial
statements of Digital Health Acquisition Corp. as of and for the years ended December 31, 2023 and 2022, which is contained in that Prospectus.
| /s/ WithumSmith+Brown, PC |
|
| |
|
| New York, New York |
|
| |
|
| October 8, 2024 |
|
Exhibit 99.1
VSee Health, Inc.
2024 Equity Incentive Plan
1. Purpose; Eligibility.
1.1 General Purpose. This
VSee Health, Inc. 2024 Equity Incentive Plan (the “Plan”) is intended to enable VSee Health, Inc., a Delaware
corporation (the “Company”) and its subsidiaries, VSee Lab, Inc., a Delaware corporation (“VSee”)
and iDoc Telehealth Solutions, Inc., a Texas corporation (“iDoc” and together with the Company and VSee, the “Company
Group”) to attract, motivate, and retain Employees, Consultants, and Directors (as such terms are defined herein) of the Company,
VSee, and iDoc by providing incentives that align the interests of such individuals with those of the stockholders of the Company in order
to promote the success of the Company’s business.
1.2 Eligible Award Recipients.
Persons eligible to receive Awards under the Plan are Employees, Consultants, and Directors.
1.3 Available Awards. Awards
that may be granted under the Plan include: (a) Incentive Stock Options, (b) Non-qualified Stock Options, (c) Restricted
Stock and (d) Restricted Share Units, or (e) Performance Share Units, and other forms of equity as they may be added in the
future.
2. Administration.
2.1 Authority of the Compensation
Committee. The Plan shall be administered by the compensation committee of the Board or, in the Board’s sole discretion, by the
Board . Subject to the terms of the Plan, the Company’s By-Laws, any Committee charter and Applicable Laws, and in addition to other
express powers and authorization conferred by the Plan, the Committee shall have the authority:
(a) to construe and
interpret the Plan and apply its provisions;
(b) to amend and rescind
rules and regulations relating to the administration of the Plan;
(c) to authorize the
Chief Executive and Chief Financial Officers to execute, on behalf of the Company, any instrument required to carry out the purposes of
the Plan;
(d) to authorize the
Chief Executive and Chief Financial Officers to grant Options, Restricted Stock Awards, Restricted Share Units, or Performance Share Units
per quarter to persons who are not “insiders” within the meaning of Section 16 of the Exchange Act, pertaining to such
numbers of shares of Common Stock as the Committee may specify in its authorizing resolution, without prior approval of the Committee,
on the condition that a full reconciliation of any and all equity grants is duly ratified at the immediately subsequent Board meeting
following any issuance.
(e) to delegate its
authority to one or more Officers of the Company with respect to Awards that do not involve “insiders” within the meaning
of Section 16 of the Exchange Act;
(f) to determine when
Awards are to be granted under the Plan and the applicable Grant Date;
(g) from time to time
to select, subject to the limitations set forth in this Plan, those eligible Award recipients to whom Awards shall be granted;
(h) to determine the
number of shares of Common Stock to be made subject to each Award;
(i) to determine whether
each Award is to be an Incentive Stock Option, a Non-qualified Stock Option, Restricted Stock, an Restricted Share Unit, a Performance
Share Unit or other form of equity;
(j) to prescribe the
terms and conditions of each Award, including, without limitation, the exercise price and medium of payment and vesting provisions, and
to specify the provisions of the Award Agreement relating to such grant;
(k) to amend any outstanding
Awards, including for the purpose of modifying the time or manner of vesting, or the term of any outstanding Award; provided, however,
that if any such amendment impairs a Participant’s rights or increases a Participant’s obligations under his or her Award
or creates or increases a Participant’s federal income tax liability with respect to an Award, such amendment shall also be subject
to the Participant’s consent;
(l) to determine the
duration and purpose of leaves of absences which may be granted to a Participant without constituting termination of their employment
for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to Employees under the Company’s
employment policies;
(m) to make decisions
with respect to outstanding Awards that may become necessary upon a change in corporate control or an event that triggers anti-dilution
adjustments;
(n) to interpret, administer,
reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any instrument or agreement relating
to, or Award granted under, the Plan; and
(o) to exercise discretion
to make any and all other determinations which it determines to be necessary or advisable for the administration of the Plan.
The Committee also may modify
the purchase price or the exercise price of any outstanding Award, provided that if the modification effects a repricing, stockholder
approval shall be required before the repricing is effective.
2.2 Committee Decisions Final.
All decisions made by the Committee pursuant to the provisions of the Plan shall be final and binding on the Company and the Participants,
unless such decisions are determined by a court having jurisdiction to be arbitrary and capricious.
2.3 Delegation. The Committee
shall have the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references
in this Plan to the Committee shall thereafter include any such subcommittee to the extent of such delegation), subject, however, to such
resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish
the Committee at any time and revest in the Board the administration of the Plan. The members of the Committee shall be appointed by and
serve at the pleasure of the Board. From time to time, the Board may increase or decrease the size of the Committee, add additional members
to, remove members (with or without cause) from, appoint new members in substitution therefor, and fill vacancies, however caused, in
the Committee. The Committee shall act pursuant to a vote of the majority of its members or, in the case of a Committee comprised of only
two members, the unanimous consent of its members, whether present or not, or by the written consent of the majority of its members and
minutes shall be kept of all of its meetings and copies thereof shall be provided to the Board. Subject to the limitations prescribed
by the Plan and the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it
may determine to be advisable.
2.4 Committee Composition.
Except as otherwise determined by the Board, the Committee shall consist solely of two or more Non-Employee Directors. The Board shall
have discretion to determine whether or not it intends to comply with the exemption requirements of Rule 16b-3. However, if the Board
intends to satisfy such exemption requirements, with respect to any insider subject to Section 16 of the Exchange Act, the Committee
shall be a compensation committee of the Board that at all times consists solely of two or more Non-Employee Directors. Within the scope
of such authority, the Board or the Committee may delegate to a committee of one or more members of the Board who are not Non- Employee
Directors the authority to grant Awards to eligible persons who are not then subject to Section 16 of the Exchange Act. Nothing herein
shall create an inference that an Award is not validly granted under the Plan in the event Awards are granted under the Plan by a compensation
committee of the Board that does not at all times consist solely of two or more Non-Employee Directors.
2.5 Indemnification. In addition
to such other rights of indemnification as they may have as Directors or members of the Committee, and to the extent allowed by Applicable
Laws, the Committee shall be indemnified by the Company against the reasonable expenses, including attorney’s fees, actually incurred
in connection with any action, suit or proceeding or in connection with any appeal therein, to which the Committee may be party by reason
of any action taken or failure to act under or in connection with the Plan or any Award granted under the Plan, and against all amounts
paid by the Committee in settlement thereof (provided, however, that the settlement has been approved by the Company, which approval
shall not be unreasonably withheld) or paid by the Committee in satisfaction of a judgment in any such action, suit or proceeding, except
in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such Committee did not act in good faith
and in a manner which such person reasonably believed to be in the best interests of the Company, or in the case of a criminal proceeding,
had no reason to believe that the conduct complained of was unlawful; provided, however, that within 60 days after the institution
of any such action, suit or proceeding, such Committee shall, in writing, offer the Company the opportunity at its own expense to handle
and defend such action, suit or proceeding.
3. Shares Subject to the Plan.
3.1 Subject to adjustment
in accordance with Section 10, no more than 2,544,021 shares of Common Stock shall be available for the grant of Awards under the
Plan (the “Total Share Reserve”). During the terms of the Awards, the Company shall keep available at all times the
number of shares of Common Stock required to satisfy such Awards.
3.2 Shares of Common Stock
available for distribution under the Plan may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares
reacquired by the Company in any manner.
3.3 Subject to adjustment
in accordance with Section 10, no more than 2,544,021 shares of Common Stock may be issued in the aggregate pursuant to the exercise
of Incentive Stock Options (the “ISO Limit”).
3.4 Any shares of Common
Stock subject to an Award that expires or is canceled, forfeited, or terminated without issuance of the full number of shares of Common
Stock to which the Award related will again be available for issuance under the Plan. Notwithstanding anything to the contrary contained
herein: shares subject to an Award under the Plan shall not again be made available for issuance or delivery under the Plan if such shares
are (a) shares tendered in payment of an Option, (b) shares delivered or withheld by the Company to satisfy any tax withholding
obligation, or (c) shares covered by Awards that were not issued upon the settlement of the Award.
4. Eligibility.
4.1 Eligibility for Specific
Awards. Incentive Stock Options may be granted only to Employees only. Awards other than Incentive Stock Options may be granted to Employees,
Consultants and Directors.
4.2 Ten Percent Shareholders.
A Ten Percent Shareholder shall not be granted an Incentive Stock Option unless the Option Exercise Price is at least 110% of the Fair
Market Value of the Common Stock on the Grant Date and the Option is not exercisable after the expiration of five years from the Grant
Date.
5. Option Provisions.
5.1 Agreements Evidence.
Each Option granted under the Plan shall be evidenced by an Award Agreement. Each Option so granted shall be subject to the conditions
set forth in this Section 5, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award
Agreement. All Options shall be separately designated Incentive Stock Options or Non-qualified Stock Options at the time of grant, and,
if certificates are issued, a separate certificate or certificates will be issued for shares of Common Stock purchased on exercise of
each type of Option. Notwithstanding the foregoing, the Company shall have no liability to any Participant or any other person if an Option
designated as an Incentive Stock Option fails to qualify as such at any time or if an Option is determined to constitute “nonqualified
deferred compensation” within the meaning of Section 409A of the Code and the terms of such Option do not satisfy the requirements
of Section 409A of the Code. The provisions of separate Options need not be identical, but each Option shall include (through incorporation
of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions;
(a) Term. Subject to
the provisions of Section 4.2 regarding Ten Percent Shareholders, no Incentive Stock Option shall be exercisable after the expiration
of 10 years from the Grant Date. The term of a Non-qualified Stock Option granted under the Plan shall be determined by the Committee;
provided, however, no Non-qualified Stock Option shall be exercisable after the expiration of 10 years from the Grant Date.
(b) Exercise Price of
an Incentive Stock Option. Subject to the provisions of Section 4.2 regarding Ten Percent Shareholders, the Option Exercise Price
of each Incentive Stock Option shall be not less than 100% of the Fair Market Value of the Common Stock subject to the Option on the Grant
Date. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an Option Exercise Price lower than that set forth
in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying
the provisions of Section 424(a) of the Code.
(c) Exercise Price of
a Non-qualified Stock Option. The Option Exercise Price of each Non-qualified Stock Option shall be not less than 100% of the Fair Market
Value of the Common Stock subject to the Option on the Grant Date. Notwithstanding the foregoing, a Non-qualified Stock Option may be
granted with an Option Exercise Price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption
or substitution for another option in a manner satisfying the provisions of Section 409A of the Code.
(d) Consideration. The
Option Exercise Price of Common Stock acquired pursuant to an Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (a) in cash or by certified or bank check at the time the Option is exercised or (b) in the discretion of
the Committee, upon such terms as the Committee shall approve, the Option Exercise Price may be paid: (i) by delivery to the Company
of other Common Stock, duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery equal to the Option
Exercise Price (or portion thereof) due for the number of shares being acquired, or by means of attestation whereby the Participant identifies
for delivery specific shares of Common Stock that have an aggregate Fair Market Value on the date of attestation equal to the Option Exercise
Price (or portion thereof) and receives a number of shares of Common Stock equal to the difference between the number of shares thereby
purchased and the number of identified attestation shares of Common Stock (a “Stock for Stock Exchange”); (ii) a
“cashless” exercise program established with a broker; (iii) by reduction in the number of shares of Common Stock otherwise
deliverable upon exercise of such Option with a Fair Market Value equal to the aggregate Option Exercise Price at the time of exercise;
(iv) by any combination of the foregoing methods; or (v) in any other form of legal consideration that may be acceptable to
the Committee. Notwithstanding the foregoing, during any period for which the Common Stock is publicly traded (i.e., the Common Stock
is listed on any established stock exchange or a national market system) an exercise by a Director or Officer that involves or may involve
a direct or indirect extension of credit or arrangement of an extension of credit by the Company, directly or indirectly, in violation
of Section 402(a) of the Sarbanes-Oxley Act of 2002 shall be prohibited with respect to any Award under this Plan.
(e) Transferability
of an Incentive Stock Option. An Incentive Stock Option shall not be transferable except by will or by the laws of descent and distribution
and shall be exercisable during the lifetime of the Optionholder only by the Optionholder.
(f) Transferability
of a Non-qualified Stock Option. A Non-qualified Stock Option may, in the sole discretion of the Committee, be transferable to a Permitted
Transferee, upon written approval by the Committee to the extent provided in the Award Agreement. If the Non-qualified Stock Option does
not provide for transferability, then the Non-qualified Stock Option shall not be transferable except by will or by the laws of descent
and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder.
(g) Vesting of Options.
Each Option may, but need not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Option
may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on performance or
other criteria) as the Committee may deem appropriate. The vesting provisions of individual Options may vary. No Option may be exercised
for a fraction of a share of Common Stock. The Committee may, but shall not be required to, provide for an acceleration of vesting and
exercisability in the terms of any Award Agreement upon the occurrence of a specified event.
(h) Termination of Continuous
Service. Unless otherwise provided in an Award Agreement or in an employment agreement the terms of which have been approved by the Committee,
in the event an Optionholder’s Continuous Service terminates (other than upon the Optionholder’s death or Disability), the
Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of
termination) but only within such period of time ending on the earlier of (a) the date three months following the termination of
the Optionholder’s Continuous Service or (b) the expiration of the term of the Option as set forth in the Award Agreement;
provided that, if the termination of Continuous Service is by the Company for Cause, all outstanding Options (whether or not vested)
shall immediately terminate and cease to be exercisable. If, after termination, the Optionholder does not exercise his or her Option within
the time specified in the Award Agreement, the Option shall terminate.
(i) Disability of Optionholder.
Unless otherwise provided in an Award Agreement, in the event that an Optionholder’s Continuous Service terminates as a result of
the Optionholder’s Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled
to exercise such Option as of the date of termination), but only within such period of time ending on the earlier of (a) the date
12 months following such termination or (b) the expiration of the term of the Option as set forth in the Award Agreement. If, after
termination, the Optionholder does not exercise his or her Option within the time specified herein or in the Award Agreement, the Option
shall terminate.
(j) Death of Optionholder.
Unless otherwise provided in an Award Agreement, in the event an Optionholder’s Continuous Service terminates as a result of the
Optionholder’s death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of
the date of death) by the Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance
or by a person designated to exercise the Option upon the Optionholder’s death, but only within the period ending on the earlier
of (a) the date 12 months following the date of death or (b) the expiration of the term of such Option as set forth in the Award
Agreement. If, after the Optionholder’s death, the Option is not exercised within the time specified herein or in the Award Agreement,
the Option shall terminate.
(k) Incentive Stock
Option $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the time of grant) of Common Stock with
respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans
of the Company and Affiliates) exceeds $100,000, the Options or portions thereof which exceed such limit (according to the order in which
they were granted) shall be treated as Non-qualified Stock Options.
6. Restricted Awards.
(a) General
A Restricted Award is an
Award of actual shares of Common Stock (“Restricted Stock”) or hypothetical Common Stock units (“Restricted
Share Units” or “Performance Share Units”) having a value equal to the Fair Market Value of an identical
number of shares of Common Stock, which may, but need not, provide that such Restricted Award may not be sold, assigned, transferred or
otherwise disposed of, pledged or hypothecated as collateral for a loan or as security for the performance of any obligation or for any
other purpose for such period (the “Restricted Period”) as the Committee shall determine. Each Restricted Award granted
under the Plan shall be evidenced by an Award Agreement. Each Restricted Award so granted shall be subject to the conditions set forth
in this Section 6, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement.
(b) Restricted Stock, Restricted Share Units,
and Performance Share Units
(i) Each Participant
granted Restricted Stock shall execute and deliver to the Company an Award Agreement with respect to the Restricted Stock setting forth
the restrictions and other terms and conditions applicable to such Restricted Stock. If the Committee determines that the Restricted Stock
shall be held by the Company or in escrow rather than delivered to the Participant pending the release of the applicable restrictions,
the Committee may require the Participant to additionally execute and deliver to the Company (A) an escrow agreement satisfactory
to the Committee, if applicable and (B) the appropriate blank stock power with respect to the Restricted Stock covered by such agreement.
If a Participant fails to execute an agreement evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and stock
power, the Award shall be null and void. Subject to the restrictions set forth in the Award, the Participant generally shall have the
rights and privileges of a stockholder as to such Restricted Stock, including the right to vote such shares and the right to receive dividends.
(ii) The terms and conditions
of a grant of Restricted Share Units or Performance Share Units shall be reflected in an Award Agreement. No shares of Common Stock shall
be issued at the time a Restricted Share Unit or Performance Share Unit is granted, and the Company will not be required to set aside
funds for the payment of any such Award. A Participant shall have no voting rights with respect to any Restricted Share Units or Performance
Share Units granted hereunder. The Committee may also grant Restricted Share Units with a deferral feature, whereby settlement is deferred
beyond the vesting date until the occurrence of a future payment date or event set forth in an Award Agreement (“Deferred Stock
Units”). At the discretion of the Committee, each Restricted Share Unit or Performance Share Unit or Deferred Stock Unit (representing
one share of Common Stock) may be credited with an amount equal to the cash and stock dividends paid by the Company in respect of one
share of Common Stock (“Dividend Equivalents”).
(c) Restrictions
(i) Restricted Stock
awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted Period, and to such other
terms and conditions as may be set forth in the applicable Award Agreement: (A) if an escrow arrangement is used, the Participant
shall not be entitled to delivery of the stock certificate; (B) the shares shall be subject to the restrictions on transferability
set forth in the Award Agreement; (C) the shares shall be subject to forfeiture to the extent provided in the applicable Award Agreement;
and (D) to the extent such shares are forfeited, the stock certificates shall be returned to the Company, and all rights of the Participant
to such shares and as a stockholder with respect to such shares shall terminate without further obligation on the part of the Company.
(ii) Restricted Share
Units, Performance Share Units, and Deferred Stock Units awarded to any Participant shall be subject to (A) forfeiture until the
expiration of the Restricted Period, and satisfaction of any applicable Performance Goals during such period, to the extent provided in
the applicable Award Agreement, and to the extent such Restricted Share Units, Performance Share Units or Deferred Stock Units are forfeited,
all rights of the Participant to such Restricted Share Units, Performance Share Units, or Deferred Stock Units shall terminate without
further obligation on the part of the Company and (B) such other terms and conditions as may be set forth in the applicable Award
Agreement.
(iii) The Committee
shall have the authority to remove any or all of the restrictions on the Restricted Stock, Restricted Share Units, Performance Share Units,
and Deferred Stock Units whenever it may determine that, by reason of changes in Applicable Laws or other changes in circumstances arising
after the date the Restricted Stock, Restricted Share Units, Performance Share Units or Deferred Stock Units are granted, such action
is appropriate.
(d) Restricted Period
With respect to Restricted
Awards, the Restricted Period shall commence on the Grant Date and end at the time or times set forth on a schedule established by the
Committee in the applicable Award Agreement. No Restricted Award may be granted or settled for a fraction of a share of Common Stock.
The Committee may, but shall not be required to, provide for an acceleration of vesting in the terms of any Award Agreement upon the occurrence
of a specified event.
(e) Delivery of Restricted Stock and Settlement
Upon the expiration of the
Restricted Period with respect to any shares of Restricted Stock, the applicable Award Agreement shall be of no further force or effect
with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is used, upon such expiration,
the Company shall deliver to the Participant, or his or her beneficiary, without charge, the stock certificate evidencing the shares of
Restricted Stock which have not then been forfeited and with respect to which the Restricted Period has expired (to the nearest full share).
Upon the expiration of the Restricted Period with respect to any outstanding Restricted Share Units or Performance Share Units, or at
the expiration of the deferral period with respect to any outstanding Deferred Stock Units, the Company shall deliver to the Participant,
or his or her beneficiary, without charge, one share of Common Stock for each such outstanding vested Restricted Share Unit, Performance
Share Unit, or Deferred Stock Unit (“Vested Unit”); provided, however, that, if explicitly provided in the applicable
Award Agreement, the Committee may, in its sole discretion, elect to pay cash or part cash and part Common Stock in lieu of delivering
only shares of Common Stock for Vested Units. If a cash payment is made in lieu of delivering shares of Common Stock, the amount of such
payment shall be equal to the Fair Market Value of the Common Stock as of the date on which the Restricted Period lapsed in the case of
Restricted Share Units or Performance Share Units, or the delivery date in the case of Deferred Stock Units, with respect to each Vested
Unit.
(f) Stock Restrictions
Each certificate representing
Restricted Stock awarded under the Plan shall bear a legend in such form as the Company deems appropriate.
7. Securities Law Compliance. Each Award
Agreement shall provide that no shares of Common Stock shall be purchased or sold thereunder unless and until (a) any then applicable
requirements of state or federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its
counsel and (b) if required to do so by the Company, the Participant has executed and delivered to the Company a letter of investment
intent in such form and containing such provisions as the Committee may require. The Company shall use reasonable efforts to seek to obtain
from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Awards and to issue
and sell shares of Common Stock upon exercise of the Awards; provided, however, that this undertaking shall not require the Company to
register under the Securities Act the Plan, any Award or any Common Stock issued or issuable pursuant to any such Award. If, after reasonable
efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems
necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure
to issue and sell Common Stock upon exercise of such Awards unless and until such authority is obtained.
8. Use of Proceeds from Stock. Proceeds
from the sale of Common Stock pursuant to Awards, or upon exercise thereof, shall constitute general funds of the Company.
9. Miscellaneous.
9.1 Acceleration of Exercisability
and Vesting. The Committee shall have the power to accelerate the time at which an Award may first be exercised or the time during which
an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Award stating the time at which
it may first be exercised or the time during which it will vest.
9.2 Stockholder Rights. Except
as provided in the Plan or an Award Agreement, no Participant shall be deemed to be the holder of, or to have any of the rights of a holder
with respect to, any shares of Common Stock subject to such Award unless and until such Participant has satisfied all requirements for
exercise of the Award pursuant to its terms and no adjustment shall be made for dividends (ordinary or extraordinary, whether in cash,
securities or other property) or distributions of other rights for which the record date is prior to the date such Common Stock certificate
is issued, except as provided in Section 10 hereof.
9.3 No Employment or Other
Service Rights. Nothing in the Plan or any instrument executed or Award granted pursuant thereto shall confer upon any Participant any
right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Award was granted or shall affect the
right of the Company or an Affiliate to terminate (a) the employment of an Employee with or without notice and with or without Cause
or (b) the service of a Director pursuant to the By-laws of the Company or an Affiliate, and any applicable provisions of the corporate
law of the state in which the Company or the Affiliate is incorporated, as the case may be.
9.4 Transfer; Approved Leave
of Absence. For purposes of the Plan, no termination of employment by an Employee shall be deemed to result from either (a) a transfer
of employment to the Company from an Affiliate or from the Company to an Affiliate, or from one Affiliate to another, or (b) an approved
leave of absence for military service or sickness, or for any other purpose approved by the Company, if the Employee’s right to
reemployment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or
if the Committee otherwise so provides in writing, in either case, except to the extent inconsistent with Section 409A of the Code
if the applicable Award is subject thereto.
9.5 Withholding Obligations.
To the extent provided by the terms of an Award Agreement and subject to the discretion of the Committee, the Participant may satisfy
any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common Stock under an Award by any of
the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company)
or by a combination of such means: (a) tendering a cash payment; (b) authorizing the Company to withhold shares of Common Stock
from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock under
the Award, provided, however, that no shares of Common Stock shall be withheld having a Fair Market Value exceeding the maximum
statutory federal, state and local tax rates that could apply to the Award in the jurisdictions applicable to the Participant on the date
that the taxes are required to be withheld, or such other limitation as may be required by then applicable accounting rules and regulations
to maintain favorable equity accounting treatment for the Award; or (c) delivering to the Company previously owned and unencumbered
shares of Common Stock of the Company.
10. Adjustments Upon Changes in Stock.
In the event of changes in the outstanding Common Stock or in the capital structure of the Company by reason of any stock or extraordinary
cash dividend, stock split, reverse stock split, an extraordinary corporate transaction such as any recapitalization, reorganization,
merger, consolidation, combination, exchange, or other relevant change in capitalization occurring after the Grant Date of any Award,
Awards granted under the Plan and any Award Agreements, the Option Exercises Price and the maximum number of shares of Common Stock subject
to all Awards stated in Section 3 will be equitably adjusted or substituted, as to the number, price or kind of a share of Common
Stock or other consideration subject to such Awards to the extent necessary to preserve the economic intent of such Award. In the case
of adjustments made pursuant to this Section 10, unless the Committee specifically determines that such adjustment is in the best
interests of the Company or an Affiliate, the Committee shall, in the case of Incentive Stock Options, ensure that any adjustments under
this Section 10 will not constitute a modification, extension or renewal of the Incentive Stock Options within the meaning of Section 424(h)(3) of
the Code and in the case of Non-qualified Stock Options, ensure that any adjustments under this Section 10 will not constitute a
modification of such Non-qualified Stock Options within the meaning of Section 409A of the Code. Any adjustments made under this
Section 10 shall be made in a manner which does not adversely affect the exemption provided pursuant to Rule 16b-3 under the
Exchange Act.
11. Effect of Change in Control.
11.1 Unless otherwise determined
by the Committee and evidenced in an Award Agreement, in the event that a Change in Control occurs, then upon the consummation of such
Change in Control, the Committee, in its sole and absolute discretion, may with respect to Awards then outstanding:
(a) provide that Awards,
whether or not then vested, shall be continued, be assumed, or have new rights substituted therefor, as determined by the Committee in
a manner consistent with the requirements of Section 409A of the Code, and restrictions to which Awards granted prior to the Change
in Control are subject shall not lapse upon a Change in Control and the Award shall, where appropriate in the sole discretion of the Committee,
receive the same distribution as other Shares on such terms as determined by the Committee; provided that the Committee may decide
to award additional Awards in lieu of any cash distribution. Notwithstanding anything to the contrary herein, for purposes of Incentive
Stock Options, any assumed or substituted Option shall comply with the requirements of Treasury Regulation Section 1.424-1 (and any
amendment thereto);
(b) provide that any
unvested or unexercisable portion of any Award carrying a right to exercise become fully vested and exercisable;
(c) cause the restrictions,
deferral limitations, payment conditions and forfeiture conditions applicable to an Award granted under the Plan to lapse and such Awards
shall be deemed fully vested and any performance conditions imposed with respect to such Awards shall be deemed to be fully achieved at
target performance levels; and/or
(d) provide for the
purchase of any Awards by the Company for an amount of cash equal to the excess (if any) of the highest price per Share paid in such Change
in Control (the “Change in Control Price”), over the aggregate exercise price of such Awards; provided, however,
that if the Option Exercise Price exceeds the Change in Control Price, such Award may be cancelled for no consideration.
If the Committee determines
in its discretion pursuant to Section 5.1(g) hereof to accelerate the vesting of Options in connection with a Change in Control,
the Committee shall also have discretion in connection with such action to provide that all Options outstanding immediately prior to such
Change in Control shall expire on the effective date of such Change in Control.
12. Amendment of the Plan and Awards.
12.1 Amendment of Plan. The
Board at any time, and from time to time, may amend or terminate the Plan. However, except as provided in Section 10 relating to
adjustments upon changes in Common Stock, no amendment shall be effective unless approved by the stockholders of the Company to the extent
stockholder approval is necessary to satisfy any Applicable Laws. At the time of such amendment, the Board shall determine, upon advice
from counsel, whether such amendment will be contingent on stockholder approval.
12.2 Stockholder Approval.
The Board may, in its sole discretion, submit any other amendment to the Plan for stockholder approval.
12.3 Contemplated Amendments.
It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide eligible
Employees, Consultants and Directors with the maximum benefits provided or to be provided under the provisions of the Code and the regulations
promulgated thereunder relating to Incentive Stock Options or to the nonqualified deferred compensation provisions of Section 409A
of the Code and/or to bring the Plan and/or Awards granted under it into compliance therewith.
12.4 No Impairment of Rights.
Rights under any Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (a) the Company
requests the consent of the Participant and (b) the Participant consents in writing.
12.5 Amendment of Awards.
The Committee at any time, and from time to time, may amend the terms of any one or more Awards; provided, however, that the Committee
may not affect any amendment which would otherwise constitute an impairment of the rights under any Award unless (a) the Company
requests the consent of the Participant and (b) the Participant consents in writing.
13. General Provisions.
13.1 Forfeiture Events. The
Committee may specify in an Award Agreement that the Participant’s rights, payments and benefits with respect to an Award shall
be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain events, in addition to applicable vesting
conditions of an Award. Such events may include, without limitation, breach of non-competition, non-solicitation, confidentiality, or
other restrictive covenants that are contained in the Award Agreement or otherwise applicable to the Participant, a termination of the
Participant’s Continuous Service for Cause, or other conduct by the Participant that is detrimental to the business or reputation
of the Company and/or any Affiliate.
13.2 Other Compensation Arrangements.
Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder
approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases.
13.3 Sub Plans. The Committee
may from time to time establish sub-plans under the Plan for purposes of satisfying securities, tax or other laws of various jurisdictions
in which the Company intends to grant Awards. Any sub-plans shall contain such limitations and other terms and conditions as the Committee
determines are necessary or desirable. All sub-plans shall be deemed a part of the Plan, but each sub-plan shall apply only to the Participants
in the jurisdiction for which the sub-plan was designed.
13.4 Unfunded Plan. The Plan
shall be unfunded. Neither the Company, the Board nor the Committee shall be required to establish any special or separate fund or to
segregate any assets to assure the performance of its obligations under the Plan.
13.5 Delivery. Upon exercise
of a right granted under this Plan, the Company shall issue Common Stock or pay any amounts due within a reasonable period of time thereafter.
Subject to any statutory or regulatory obligations the Company may otherwise have, for purposes of this Plan, 30 days shall be considered
a reasonable period of time.
13.6 No Fractional Shares.
No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan. The Committee shall determine whether cash, additional
Awards or other securities or property shall be issued or paid in lieu of fractional shares of Common Stock or whether any fractional
shares should be rounded, forfeited or otherwise eliminated.
13.7 Other Provisions. The
Award Agreements authorized under the Plan may contain such other provisions not inconsistent with this Plan, including, without limitation,
restrictions upon the exercise of Awards, as the Committee may deem advisable.
13.8 Section 409A. The
Plan is intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum extent permitted,
the Plan shall be interpreted and administered to be in compliance therewith. Any payments described in the Plan that are due within the
“short-term deferral period” as defined in Section 409A of the Code shall not be treated as deferred compensation unless
Applicable Laws require otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required to avoid accelerated taxation
and tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided
pursuant to the Plan during the six (6) month period immediately following the Participant’s termination of Continuous Service
shall instead be paid on the first payroll date after the six-month anniversary of the Participant’s separation from service (or
the Participant’s death, if earlier). Notwithstanding the foregoing, neither the Company nor the Committee shall have any obligation
to take any action to prevent the assessment of any additional tax or penalty on any Participant under Section 409A of the Code and
neither the Company nor the Committee will have any liability to any Participant for such tax or penalty.
13.9 Disqualifying Dispositions.
Any Participant who shall make a “disposition” (as defined in Section 424 of the Code)
of all or any portion of shares of Common Stock acquired upon exercise of an Incentive Stock Option within two years from the Grant Date
of such Incentive Stock Option or within one year after the issuance of the shares of Common Stock acquired upon exercise of such
Incentive Stock Option (a “Disqualifying Disposition”) shall be required to immediately advise the Company in writing
as to the occurrence of the sale and the price realized upon the sale of such shares of Common Stock.
13.10 Section 16. It
is the intent of the Company that the Plan satisfy, and be interpreted in a manner that satisfies, the applicable requirements of Rule 16b-3
as promulgated under Section 16 of the Exchange Act so that Participants will be entitled to the benefit of Rule 16b-3, or any
other rule promulgated under Section 16 of the Exchange Act, and will not be subject to short-swing liability under Section 16
of the Exchange Act. Accordingly, if the operation of any provision of the Plan would conflict with the intent expressed in this Section 13.10,
such provision to the extent possible shall be interpreted and/or deemed amended so as to avoid such conflict.
13.11 Expenses. The costs
of administering the Plan shall be paid by the Company.
13.12 Severability. If any
of the provisions of the Plan or any Award Agreement is held to be invalid, illegal or unenforceable, whether in whole or in part, such
provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining
provisions shall not be affected thereby.
13.13 Plan Headings. The
headings in the Plan are for purposes of convenience only and are not intended to define or limit the construction of the provisions hereof.
13.14 Non-Uniform Treatment.
The Committee’s determinations under the Plan need not be uniform and may be made by it selectively among persons who are eligible
to receive, or actually receive, Awards. Without limiting the generality of the foregoing, the Committee shall be entitled to make non-uniform
and selective determinations, amendments and adjustments, and to enter into non-uniform and selective Award Agreements.
14. Effective Date and Termination of Plan.
The Plan was adopted by the Board to be effective as of June 24, 2024 (the “Effective Date”), subject to approval
by the Company’s stockholders as set forth below. Unless earlier terminated by the Board, this Plan shall terminate at the close
of business on June 23, 2034. After the termination of this Plan either upon such stated expiration date or its earlier termination
by the Board, no additional awards may be granted under this Plan, but previously granted awards (and the authority of the Committee with
respect thereto, including the authority to amend such awards) shall remain outstanding in accordance with their applicable terms and
conditions and the terms and conditions of this Plan.
Notwithstanding any provisions
herein to the contrary, until such time that the Plan has been approved by the holders of not less than a majority of each class of outstanding
capital stock of the Company entitled to vote thereon, the Company (i) may not grant any shares of stock to any Person pursuant to
the Plan; and (ii) any options granted by the Company to any Person pursuant to the Plan may not be exercised prior to the Company
obtaining the requisite stockholder approval. If the Company does not obtain the requisite stockholder approval within one year from the
Effective Date, the Plan shall be immediately unwound and any outstanding options granted hereunder prior to obtaining the requisite stockholder
approval shall be immediately cancelled.
15. Termination or Suspension of the Plan.
No Award shall be granted pursuant to the Plan after the termination of the Plan in accordance with Section 14, but Awards theretofore
granted may extend beyond that date. The Board may suspend or terminate the Plan at any earlier date pursuant to Section 12.1 or
14 hereof. No Awards may be granted under the Plan while the Plan is suspended or after it is terminated.
16. Choice of Law. The law of the State
of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such state’s
conflict of law rules.
17. Definitions.
“Affiliate”
means a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control
with, the Company as of any date of determination, which currently includes VSee and iDoc.
“Applicable Laws”
means the requirements related to or implicated by the administration of the Plan under applicable state corporate law, United States
federal and state securities laws, the Code, any stock exchange or quotation system on which the shares of Common Stock are listed or
quoted, and the applicable laws of any foreign country or jurisdiction where Awards are granted under the Plan.
“Award”
means any right granted under the Plan, including an Incentive Stock Option, a Non- qualified Stock Option, a Restricted Stock Award,
a Restricted Share Unit Award, or a Performance Share Unit Award.
“Award Agreement”
means a written agreement, contract, certificate or other instrument or document evidencing the terms and conditions of an individual
Award granted under the Plan which may, in the discretion of the Company, be transmitted electronically to any Participant. Each Award
Agreement shall be subject to the terms and conditions of the Plan.
“Beneficial Owner”
(or any variant thereof) has the meaning defined in Rule 13d-3 under the Exchange Act.
“Board”
means the Board of Directors of the Company, as constituted at any time.
“Change in Control”
means the first occurrence of an event set forth in any one of the following paragraphs following the Effective Date:
(1) any Person is or
becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned
by such Person which were acquired directly from the Company or any Affiliate thereof) representing greater than fifty percent (50%) of
the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner
in connection with a transaction described in clause (i) of paragraph (3) below; or
(2) the date on which
the individuals who constitute the Board as of the beginning of any twelve (12) consecutive month period and any new director whose appointment
to the Board or nomination for election to the Board by the Company’s stockholders was approved or recommended by a vote of a majority
of the directors then still in office who either were directors at the beginning of such twelve (12) month period or whose appointment
or nomination for election was previously so approved or recommended cease for any reason to constitute a majority of the number of directors
serving on the Board; or
(3) there is consummated
a merger or consolidation of the Company or any direct or indirect Subsidiary with any other corporation or other entity, other than (i) a
merger or consolidation (A) which results in the voting securities of the Company outstanding immediately prior to such merger or
consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity
or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit
plan of the Company or any Subsidiary, fifty percent (50%) or more of the combined voting power of the securities of the Company or such
surviving entity or any parent thereof outstanding immediately after such merger or consolidation and (B) following which the individuals
who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of the Company, the entity surviving
such merger or consolidation or, if the Company or the entity surviving such merger or consolidation is then a Subsidiary, the ultimate
parent thereof, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction)
in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities
Beneficially Owned by such Person any securities acquired directly from the Company or its Affiliates) representing more than fifty percent
(50%) of the combined voting power of the Company’s then outstanding securities; or
(4) there is consummated
the sale or disposition by the Company of all or substantially all of the Company’s assets, other than (A) a sale or disposition
by the Company of all or substantially all of the Company’s assets to an entity, more than fifty percent (50%) of the combined voting
power of the voting securities of which are owned by stockholders of the Company following the completion of such transaction in substantially
the same proportions as their ownership of the Company immediately prior to such sale or (B) a sale or disposition of all or substantially
all of the Company’s assets immediately following which the individuals who comprise the Board immediately prior thereto constitute
at least a majority of the board of directors of the entity to which such assets are sold or disposed or, if such entity is a subsidiary,
the ultimate parent thereof.
Notwithstanding the foregoing,
(i) a Change in Control shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated
transactions immediately following which the holders of Common Stock immediately prior to such transaction or series of transactions continue
to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately
following such transaction or series of transactions and (ii) to the extent required to avoid accelerated taxation and/or tax penalties
under Section 409A of the Code, a Change in Control shall be deemed to have occurred under the Plan with respect to any Award that
constitutes deferred compensation under Section 409A of the Code only if a change in the ownership or effective control of the Company
or a change in ownership of a substantial portion of the assets of the Company shall also be deemed to have occurred under Section 409A
of the Code. For purposes of this definition of Change in Control, the term “Person” shall not include (i) the Company
or any Subsidiary thereof, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or
any Subsidiary thereof, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a
corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership
of shares of the Company.
“Code”
means the Internal Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall be deemed
to include a reference to any regulations promulgated thereunder.
“Committee”
means the compensation committee of the Board, the Board as a whole or a committee of one or more members of the Board appointed by the
Board to administer the Plan in accordance with Section 2.
“Common Stock”
means the voting common stock, $0.001 par value per share, of the Company.
“Company”
means VSee Health, Inc., a Delaware corporation, and any successor thereto.
“Consultant”
means any individual who performs bona fide services to the Company or an Affiliate, other than as an Employee or Director, and who may
be offered securities registerable pursuant to a registration statement on Form S-8 under the Securities Act.
“Continuous Service”
means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Consultant or Director, is not interrupted
or terminated. The Participant’s Continuous Service shall not be deemed to have terminated merely because of a change in the capacity
in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity
for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s
Continuous Service; provided further that if any Award is subject to Section 409A of the Code, this sentence shall only be
given effect to the extent consistent with Section 409A of the Code. For example, a change in status from an Employee of the Company
to a Director of an Affiliate will not constitute an interruption of Continuous Service.
“Deferred Stock
Unit” means a Restricted Share Unit with a deferral feature, whereby settlement is deferred beyond the vesting date until the
occurrence of a future payment date or event set forth in an Award Agreement, granted under Section 6 of the Plan.
“Director”
means a member of the Board or of the board of directors of an Affiliate.
“Disability”
means, unless the applicable Award Agreement says otherwise, that the Participant is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment; provided, however, for purposes of determining the term
of an Incentive Stock Option pursuant to Section 5.1(i) hereof, the term Disability shall have the meaning ascribed to it under
Section 22(e)(3) of the Code. The determination of whether an individual has a Disability shall be determined under procedures
established by the Committee. Except in situations where the Committee is determining Disability for purposes of the term of an Incentive
Stock Option pursuant to Section 5.1(i) hereof within the meaning of Section 22(e)(3) of the Code, the Committee may
rely on any determination that a Participant is disabled for purposes of benefits under any long-term disability plan maintained by the
Company or any Affiliate in which a Participant participates.
“Disqualifying Disposition”
has the meaning set forth in Section 13.9
“Effective Date”
has the meaning set forth in Section 14.
“Employee”
means any person, including an Officer or Director, employed by the Company or an Affiliate; provided, that, for purposes of determining
eligibility to receive Incentive Stock Options, an Employee shall mean an employee of the Company or a parent or subsidiary corporation
within the meaning of Section 424 of the Code. Mere service as a Director or payment of a director’s fee by the Company or
an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate.
“Exchange Act”
means the Securities Exchange Act of 1934, as amended.
“Fair Market Value”
means, as of any date, the value of the Common Stock as determined below. If the Common Stock is listed on any established stock exchange
or a national market system, including without limitation, the New York Stock Exchange or the NASDAQ Stock Market, the Fair Market Value
shall be the closing price of a share of Common Stock (or if no sales were reported the closing price on the date immediately preceding
such date) as quoted on such exchange or system on the day of determination, as reported in the Wall Street Journal. In the absence of
an established market for the Common Stock, the Fair Market Value shall be determined in good faith by the Committee and such determination
shall be conclusive and binding on all persons.
“Grant Date”
means the date on which the Committee adopts a resolution, or takes other appropriate action, expressly granting an Award to a Participant
that specifies the key terms and conditions of the Award or, if a later date is set forth in such resolution, then such date as is set
forth in such resolution.
“Incentive Stock
Option” means an Option that is designated by the Committee as an incentive stock option within the meaning of Section 422
of the Code and that meets the requirements set out in the Plan and the Code.
“Non-Employee Director”
means a Director of the Company who is a “non-employee director” within the meaning of Rule 16b-3.
“Non-qualified Stock
Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.
“Officer”
means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.
“Option”
means an Incentive Stock Option or a Non-qualified Stock Option granted pursuant to the Plan.
“Optionholder”
means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.
“Option Exercise
Price” means the price at which a share of Common Stock may be purchased upon the exercise of an Option.
“Participant”
means an eligible person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Award.
“Performance Share
Unit” means an unfunded and unsecured promise to deliver shares of Common Stock, cash, other securities or other property, subject
to certain performance requirements and restrictions (including, without limitation, a requirement that the Participant provide Continuous
Service for a specified period of time) granted under Section 6 of the Plan.
“Permitted Transferee”
means: (a) a member of the Optionholder’s immediate family (child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
including adoptive relationships), any person sharing the Optionholder’s household (other than a tenant, employee or other service
provider), a trust in which these persons (or the Optionholder) have more than 50% of the beneficial interest, a foundation in which these
persons (or the Optionholder) control the management of assets, and any other entity in which these persons (or the Optionholder) own
more than 50% of the voting interests; (b) third parties designated by the Committee in connection with a program established and
approved by the Committee pursuant to which Participants may receive a cash payment or other consideration in consideration for the transfer
of a Non-qualified Stock Option; and (c) such other transferees as may be permitted by the Committee in its sole discretion.
“Person”
shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof.
“Plan”
means this VSee Health, Inc. 2023 Equity Incentive Plan, as amended, restated, modified, or otherwise supplemented from time to time.
“Restricted Period”
has the meaning set forth in Section 6.
“Restricted Stock”
means Common Stock, subject to certain specified restrictions (including, without limitation, a requirement that the Participant provide
Continuous Service for a specified period of time) granted under Section 6 of the Plan.
“Restricted Share
Unit” means an unfunded and unsecured promise to deliver shares of Common Stock, cash, other securities or other property, subject
to certain restrictions (including, without limitation, a requirement that the Participant provide Continuous Service for a specified
period of time) granted under Section 6 of the Plan.
“Rule 16b-3”
means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.
“Securities Act”
means the Securities Act of 1933, as amended.
“Stock for Stock
Exchange” has the meaning set forth in Section 5.1(d).
“Subsidiary”
means, with respect to any Person, as of any date of determination, any other Person as to which such first Person owns or otherwise controls,
directly or indirectly, more than 50% of the voting shares or other similar interests or a sole general partner interest or managing member
or similar interest of such other Person.
“Ten Percent Shareholder”
means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than 10% of the total
combined voting power of all classes of stock of the Company or of any Affiliate.
“Total Share Reserve”
has the meaning set forth in Section 3.1.
Exhibit 99.2
VSEE HEALTH, INC.
2024 EQUITY INCENTIVE PLAN
STOCK OPTION AGREEMENT
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Optionholder: |
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Grant Date: |
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Option
Exercise Price per Share1: |
USD $ |
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Total Option Exercise Price: |
USD $ |
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Number of Shares of Common Stock (“Shares”)1: |
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Expiration
Date2: |
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Type
of Option3: |
Incentive
Stock Option
Non-qualified
Stock Option |
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Exercise/Vesting Schedule2: |
[All] _________ (______) Shares on the Grant Date [and an additional __________ (_____) Shares on the __ day of _____________ and each month thereafter, until fully vested and exercisable on _________, 20__.] |
This
STOCK OPTION AGREEMENT (this “Agreement”) is by and between VSee Health, Inc., a Delaware corporation
(the “Company”), and the Optionholder named above (the “Optionholder”). The right to purchase the
number of shares of the Company’s Common Stock identified above (the “Option”) is granted pursuant to and subject
to the terms and conditions set forth in the VSee Health, Inc. 2024 Equity Incentive Plan (the “Plan”). Capitalized
terms used herein and not otherwise defined herein shall have the meaning assigned by the Plan.
WHEREAS,
pursuant to the Plan, the Company desires to grant to the Optionholder with reference to services rendered and to be rendered to the Company,
effective as of the Grant Date, an Option upon the terms and conditions set forth herein and in the Plan:
1 Subject to adjustment under Section 10 of
the Plan.
2 Subject to early termination
pursuant to Sections 5.1(h), (i) and (j) if the Optionholder’s Continuous Service terminates, or pursuant to Section 11 upon a Change
in Control.
3 Subject to Section 5.1(k) of the Plan.
NOW
THEREFORE, in consideration of services rendered and to be rendered prior to exercise of the Option by the Optionholder and
the mutual promises made herein and the mutual benefits to be derived therefrom, the parties agree as follows:
1. Grant
of Option. The Company hereby grants to the Optionholder, and the Optionholder hereby accepts, the Option to purchase the total number
of Shares set forth above, at the Option Exercise Price per Share subject to the terms, definitions and provisions of the Plan and this
Agreement.
2. Type
of Option. If the Company has designated the Option as an Incentive Stock Option above, the Company intends that the Option will be
treated as an “incentive stock option” within the meaning of Section 422 of the Code to the maximum extent permissible
under all of the Incentive Stock Option rules and restrictions. Any Shares acquired upon exercise of the Option without compliance
with all applicable Incentive Stock Option rules will be treated as acquired upon exercise of a Non-qualified Stock Option. If the
Company has designated the Option as a Non-qualified Stock Option above, the Company intends that the Option will be treated in its entirety
as a Non-qualified Stock Option and not as an Incentive Stock Option.
3. Exercisability
of Option. The Option shall vest and become exercisable during its term in accordance with the Exercise/Vesting Schedule as set forth
above, and with and subject to the applicable provisions of the Plan and this Agreement. The Option may be exercised only to the extent
the Option is vested and exercisable, and, subject to Sections 5.1(e) and (f) of the Plan, during the Optionholder’s
lifetime, only by the Optionholder. In no event may the Optionholder exercise the Option after the Expiration Date as provided above.
4. Exercise
of Option. To exercise the Option (to the extent vested and exercisable and for whole numbers of shares only), the Optionholder
(or in the case of exercise after the Optionholder’s death or disability, the Optionholder’s guardian or legal representative,
as the case may be) must deliver to the Company (i) the Option Exercise Agreement in the form attached hereto as Exhibit A,
as may be amended or modified by the Committee from time to time, along with any other agreement reasonably requested by the Company,
or of any other form of written notice approved for such purpose by the Company which shall state the number of Shares to be purchased
pursuant to the Option, and (ii) such other representations and agreements as to the holder’s investment intent with respect
to such Shares as may be required by the Company. The Option Exercise Agreement or written notice shall be accompanied by payment of the
aggregate Option Exercise Price of the Shares to be purchased and the payment or provision for any applicable income, employment or other
taxes or withholding for taxes thereon. Subject to Section 7 of the Plan, the Option shall be deemed to be exercised upon receipt
and approval by the Company of such Option Exercise Agreement or written exercise notice and payment of the aggregate Option Exercise
Price and any other payments so required.
5. Method
of Payment. Payment of the aggregate Option Exercise Price shall be made in cash or by certified or bank check pursuant to
Section 5.1(d)(a) of the Plan [or by any of the methods permitted under Section 5.1(d)(b) of the Plan, or a combination
thereof, at the election of the Optionholder] Payment of any tax withholding obligations shall be made in cash [or by any of the other
methods set forth in Section 9.5 of the Plan].
6. Continuous
Service Required. The Exercise/Vesting Schedule requires the Optionholder to be in Continuous Service through each applicable
vesting date as a condition to the vesting of and right to exercise the applicable installment under this Agreement. Continuous Service
that ends prior to a vesting date, even if substantial, will not entitle the Optionholder to any proportionate vesting or avoid or mitigate
a termination of rights and benefits upon or following termination of Continuous Service.
7. Effect
of Termination of Continuous Service on Exercise Period.
(a) If
the Optionholder’s Continuous Service terminates, the Option and all other rights and benefits under this Agreement terminate, except
that the Optionholder, at any time within the applicable period specified in Section 5.1(h), (i) or (j) of the Plan, may
exercise the Option to the extent the Option has vested and is exercisable on the date of termination of Continuous Service and has not
otherwise expired or terminated.
(b) Notwithstanding
the foregoing exercise periods after termination of Continuous Service, to the extent the Option otherwise is an Incentive Stock Option,
the Option will qualify as an Incentive Stock Option only if it is exercised within the applicable exercise periods for Incentive Stock
Options and meets all other requirements of the Code for Incentive Stock Options. If the Option is not exercised within the applicable
exercise periods or does not meet such other requirements, the Option will be rendered a Non-qualified Stock Option.
8. Adjustments
Upon Specified Events. As provided in Section 10 of the Plan, upon the occurrence of certain events relating to or affecting
the Company’s stock contemplated by Section 10 of the Plan, the Committee shall, in such manner, to such extent (if any) and
at such times as it deems appropriate and equitable in the circumstances, make adjustments in the number, amount and type of shares (or
other securities or property) subject to the Option, the Option Exercise Price and the securities delivered upon exercise of the Option
(or any combination thereof), and the Committee may take any of the actions set forth in Section 11 of the Plan in connection with
a Change in Control of the Company. All rights of the Optionholder hereunder are subject to such adjustments and other provisions of the
Plan.
9. Optionholder
not a Stockholder. Neither the Optionholder nor any other person entitled to exercise the Option shall have any of the rights
or privileges of a stockholder of the Company as to any Shares until exercise of the Option and the issuance and delivery to him or her
of a certificate evidencing the Shares registered in his or her name, or upon request in the case of uncertificated securities, a notice
of issuance, for the Shares. No adjustment will be made for dividends or other rights as a stockholder as to which the record date is
prior to such date of delivery.
10. Non-Transferability
of Option. The Option and any other rights of the Optionholder under this Agreement or the Plan are nontransferable except
as expressly provided in Sections 5.1(e) and (f) of the Plan.
11. Imposition
of Other Requirements. The Company reserves the right, without Optionholder’s consent, to cancel or forfeit outstanding grants
or impose other requirements on Optionholder’s participation in the Plan, on this Option and the Shares subject to this Option and
on any other Award or Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply
with applicable laws or facilitate the administration of the Plan. Optionholder agrees to sign any additional agreements or undertakings
that may be necessary to accomplish the foregoing.
12. Notices.
Any notice to be given under the terms of this Agreement shall be in writing and addressed to the Company at 980 N Federal Hwy #304, Boca
Raton, FL 33432, to the attention of Co-Chief Executive Officers and to the Optionholder at the address given beneath the Optionholder’s
signature hereto, or at such other address as either party may hereafter designate in writing to the other.
13. Electronic
Delivery and Translation. The Company may, in its sole discretion, decide to deliver any documents related to Optionholder’s
current or future participation in the Plan, this Option, the Shares subject to this Option, any other Company securities or any other
Company-related documents, by electronic means. By accepting this Option, whether electronically or otherwise, Optionholder hereby (i) consents
to receive such documents by electronic means, (ii) consents to the use of electronic signatures, and (iii) if applicable, agrees
to participate in the Plan and/or receive any such documents through an on-line or electronic system established and maintained by the
Company or a third party designated by the Company, including but not limited to the use of electronic signatures or click-through electronic
acceptance of terms and conditions.
14. No
Acquired Rights or Employment Rights. In accepting the Option, Optionholder acknowledges that the Plan is established voluntarily
by the Company, is discretionary in nature, and may be modified, amended, suspended or terminated by the Company at any time. The grant
of the Option is voluntary and occasional and does not create any contractual or other right to receive future grants of Options, other
Awards or benefits in lieu of Options, even if Options have been granted repeatedly in the past, and all decisions with respect to future
grants of Options or other Awards, if any, will be at the sole discretion of the Company. In addition, Optionholder’s participation
in the Plan is voluntary, and the Option and the Shares subject to the Option are extraordinary items that do not constitute regular compensation
for services rendered to the Company or any Subsidiary or Affiliate and are outside the scope of Optionholder’s employment contract,
if any. The Option and the Shares subject to the Option are not intended to replace any pension rights or compensation and are not part
of normal or expected salary or compensation for any purpose, including but not limited to calculating severance payments, if any, upon
termination.
Nothing contained in this
Agreement is intended to constitute or create a contract of employment, nor shall it constitute or create the right to remain associated
with or in the employ of the Company or any Subsidiary or Affiliate for any particular period of time. This Agreement shall not interfere
in any way with the right of the Company or any Subsidiary or Affiliate to terminate the Optionholder’s employment or other Continuous
Service at any time, subject to applicable laws.
15. Effect
of Award Agreement. This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company,
except to the extent the Committee determines otherwise.
16. Entire
Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan and this Agreement (including any Addendum
attached hereto) constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety
all prior undertakings and agreements of the Company and the Optionholder with respect to the subject matter hereof. Except in accordance
with the terms of the Plan, this Agreement may not be modified except by means of a writing signed by the Company and the Optionholder.
The construction, interpretation, performance and enforcement of this Agreement and the Option shall be governed by the internal substantive
laws, but not the choice of law rules, of the State of Delaware. For purposes of litigating any dispute that may arise directly or indirectly
from this Agreement, the parties hereby submit and consent to the exclusive jurisdiction of the state of Delaware and agree that any such
litigation shall be conducted only in the courts of Delaware or the federal courts of the United States located in Delaware and no other
courts.
17. Plan.
The Option and all rights of the Optionholder with respect thereto are subject to, and the Optionholder agrees to be bound by, all
of the terms and conditions of the provisions of the Plan, incorporated herein by reference, to the extent such provisions are applicable
to Awards granted thereunder. The Optionholder acknowledges receipt of a copy of the Plan, which is made a part hereof by this reference,
and agrees to be bound by the terms thereof. Unless otherwise expressly provided in other Sections of this Agreement, provisions of the
Plan that confer discretionary authority on the Committee do not (and shall not be deemed to) create any rights in the Optionholder unless
such rights are expressly set forth herein or are otherwise in the sole discretion of the Committee specifically so conferred by appropriate
action of the Board under the Plan after the date hereof.
18. Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable Law, the parties agree to renegotiate such provision
in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such
provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision were
so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms.
19. Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original,
and all of which together shall constitute one and the same agreement. Execution of a facsimile or scanned copy will have the same force
and effect as execution of an original, and a facsimile or scanned signature will be deemed an original and valid signature.
[Signatures on Following Page]
IN WITNESS
WHEREOF, the parties have executed this Stock Option Agreement as of the Grant Date.
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AGREED AND ACKNOWLEDGED: |
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| COMPANY: |
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OPTIONHOLDER: |
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| VSEE HEALTH, INC. |
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(Optionholder’s
Signature) |
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(Optionholder’s Name) |
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(Optionholder’s Address) |
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(Optionholder’s Address) |
[Signature Page to
Stock Option Agreement]
Exhibit A
Option Exercise Agreement
[See attached]
Exhibit 99.3
VSEE HEALTH, INC.
2024 EQUITY INCENTIVE PLAN
RESTRICTED SHARE UNIT AWARD AGREEMENT
VSee Health, Inc.,
a Delaware corporation (“Company”), hereby grants an Award of Restricted Share Units, subject to the terms, conditions, and
restrictions of the Company’s 2024 Equity Incentive Plan (the “Plan”), and this Restricted Share Unit Award Agreement,
including Appendix A attached hereto (the Restricted Share Unit Award Agreement and Appendix A are collectively referred to as the “Award
Agreement”). The capitalized terms used in the Award Agreement that are defined in the Plan shall have the same meanings herein
as are set forth in the Plan.
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Grantee: |
[name] |
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Grant Date |
[date] |
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Total Number of Shares subject to
Restricted
Share Units Granted: |
[number] |
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Dividend Equivalents (check one) |
____ are included |
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____ are not included |
Vesting Schedule:
The Restricted Share Units shall vest
in accordance with the schedule set forth below. Except as otherwise provided in the Award Agreement, the Restricted Share Units will
not vest and Grantee will not be issued shares of Common Stock (“Shares”) with respect to the Restricted Share Units unless
Grantee has Continuous Service through the applicable vesting date, as set forth below. The Restricted Share Units will vest as follows:
Restricted Share Units for [number] Shares on [date]
Restricted Share Units for [number] Shares on [date]
Restricted Share Units for [number] Shares on [date]
Restricted Share Units for [number] Shares on [date]
Termination
of Service:
In the event Grantee’s Continuous
Service terminates, whether such termination of Continuous Service is by the Company or by Grantee, the Restricted Share Units shall
have been earned only to the extent that the Restricted Share Units have vested prior to such termination in accordance with the schedule
set forth above and shall not accelerate on a pro rata (or any other) basis. Upon such termination of Continuous Service, the Restricted
Share Units shall terminate with respect to the number of Shares that have not yet vested, such Restricted Share Units shall be canceled
and of no further force or effect, and no Shares shall be issued with respect to such terminated Restricted Share Units.
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VSEE HEALTH,
INC. |
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By: |
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Title: |
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Grantee acknowledges and
represents that Grantee is familiar with the terms and provisions of this Award Agreement and hereby accepts same subject to all its
terms and provisions hereof. Grantee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the
Board of Directors or its duly appointed Committee upon any questions arising under the Plan.
APPENDIX A
TERMS AND CONDITIONS FOR RESTRICTED SHARE UNITS
1. Grant.
The Company grants to Grantee an Award of Restricted Share Units for the number of Shares set forth in the Award Agreement, subject to
the terms and conditions of the Plan, which is incorporated herein by reference. In the event of a conflict between the terms and conditions
of the Plan and this Award Agreement, the terms and conditions of the Plan shall prevail.
2. Restrictions
on Transfer. The Award shall be nontransferable and shall not be assignable, alienable, saleable, or otherwise transferable by Grantee
other than by will or the laws of descent and distribution or pursuant to a “domestic relations order” (as defined in Code
Section 414(p)(1)(B)). The terms of this Award Agreement shall be binding upon the executors, administrators, heirs, successors
and assigns of Grantee. No non-permitted transferee of Grantee shall have any right in or claim to any Restricted Share Units or any
Shares subject to the Restricted Share Units.
3. Vesting
of Restricted Share Units.
(a) Time
Vesting. The Restricted Share Units covered by this Award shall vest in the installments set forth in the Award Agreement, provided
that Grantee’s Continuous Service continues through the specified dates.
(b) Change
in Control. Upon a Change in Control as defined in Section 17 of the Plan, the Board or the Committee may make any determinations
and take any actions permitted under Section 11 of the Plan.
(c) Action
by Committee. The Committee shall have the authority, in its sole and absolute discretion, to remove any or all of the restrictions
applicable to the Restricted Share Units whenever the Committee may determine that such action is appropriate by reason of changes to
applicable tax or other laws.
4. Settlement
of Restricted Share Units and Issuance of Shares. As soon as reasonably practicable following the vesting date or vesting event for
each portion of the Restricted Share Units, but in no event later than the 15th day of the third month following the later
of the Company’s or Grantee’s tax year end of the year in which such vesting occurs, the Company shall settle such Restricted
Share Units by issuing and delivering to Grantee the number of Shares relating to such portion of the Restricted Share Units then vesting.
[Upon issuance of such Shares, Grantee shall enter into and shall be bound by any stockholders’ agreement in effect from time to
time that includes holders of Common Stock.]
5. Fractional
Shares. No fractional shares shall be delivered to Grantee. Any fractional shares shall be rounded down to the nearest whole number,
provided that such fractional shares shall be aggregated and vested on the date when all restrictions lapse or expire.
6. Legends;
Securities Laws Acknowledgment.
(a) If
Shares issued pursuant to the Restricted Shares Units are held in certificated form, certificates representing Shares so issued shall
bear appropriate legends for compliance with applicable securities laws.
(b) The
Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation
of any of the provisions of this Award Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay
dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.
(c) Grantee
agrees and acknowledges that he or she will acquire any Shares issued pursuant to the Restricted Share Units for investment purposes
only and without a view to, or in connection with, the sale or distribution thereof.
(d) To
the extent any Shares issued pursuant to the Restricted Shares Units are held in book-entry form, such book-entry designation shall contain
the same restrictions as set forth above as would otherwise be placed on any certificates and in each such case, the Company shall notify
its transfer agent of the restrictions set forth herein.
7. Rights
as a Stockholder. Grantee shall have no rights of a stockholder of the Company with respect to any Shares subject to the Restricted
Share Units until the Restricted Shares Units have vested and Shares have been issued to Grantee.
8. Dividend
Equivalents. Notwithstanding the foregoing, if the Award Agreement indicates that Dividend Equivalents “are included,”
Grantee shall be paid Dividend Equivalents with respect to the number of Shares subject to the Restricted Share Units in the same form
of payment (cash or Shares) as dividends are paid to stockholders of record with a record date on or after the Grant Date and before
the date Shares are issued pursuant to the Restricted Share Units. Dividend Equivalents shall vest with respect to Restricted Share Units
only as and when such Restricted Share Units vest and shall be forfeited upon the forfeiture of such Restricted Share Units. Payment
of Dividend Equivalents with respect to Restricted Share Units shall be made upon the issuance of Shares pursuant to the Restricted Share
Units.
9. Separate
Advice and Representation. The Company is not providing Grantee with advice, warranties, or representations regarding any of the
legal, tax, or business effects to Grantee with respect to the Plan or this Award Agreement. Grantee is encouraged to seek legal, tax,
and business advice from Grantee’s own legal, tax, and business advisers as soon as possible. By accepting this Award and the Restricted
Share Units covered thereby, and by signing this Award Agreement, Grantee acknowledges that Grantee is familiar with the terms of the
Award Agreement and the Plan, that Grantee has been encouraged by the Company to discuss the Award and the Plan with Grantee’s
own legal, tax, and business advisers, and that Grantee agrees to be bound by the terms of the Plan and the Award Agreement.
10. Tax
Withholding.
(a) The
Company will assess its requirements regarding federal, state, and local income taxes, FICA taxes, and any other applicable taxes (“Tax
Items”) in connection with the Restricted Share Units and the issuance of Shares thereunder. These requirements may change from
time to time as laws or interpretations change. The Company will withhold Tax Items as required by law. Regardless of the Company's actions
in this regard, Grantee acknowledges and agrees that the ultimate liability for Tax Items is Grantee’s responsibility. Grantee
acknowledges and agrees that the Company:
(i) makes
no representations or undertakings regarding the treatment of any Tax Items in connection with any aspect of the Restricted Share Units,
any receipt of Shares thereunder or any subsequent sale of such Shares; and
(ii) does
not commit to structure the terms of the Restricted Share Units or any aspect of the Restricted Share Units or any issuance of Shares
thereunder to reduce or eliminate liability for Tax Items.
(b) Notwithstanding
any contrary provision of this Award Agreement, no certificate representing Shares and no book-entry Shares will be issued to Grantee,
unless and until satisfactory arrangements (as determined by the Committee) have been made by Grantee with respect to the payment of
income, employment, and other taxes that the Company determines are to be withheld with respect to such Shares so issuable. The Committee,
in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit Grantee to satisfy such tax withholding
obligation, in whole or in part (without limitation) by one or more of the following: (i) paying cash, (ii) delivering to the
Company already vested and owned Shares having an aggregate Fair Market Value (as of the date the withholding is effected) equal to the
amount required to be withheld, or (ii) by authorizing the Company to hold back a number of Shares otherwise issuable to Grantee
through such means as the Company may determine in its sole discretion (whether through a broker or otherwise) having an aggregate Fair
Market Value (as of the date the withholding is effected) equal to the amount required to be withheld.
11. No
Acquired Rights or Employment Rights. Grantee agrees and acknowledges that:
(a) the
Plan is established voluntarily by the Company, is discretionary in nature, and may be modified, amended, suspended or terminated by
the Company at any time;
(b) the
grant of this Award under the Plan is voluntary and occasional and does not create any contractual or other right to receive future grants
of any Awards or benefits in lieu of any Awards, even if Awards have been granted repeatedly in the past and regardless of any reasonable
notice period mandated under local law, and all decisions with respect to future grants of Awards, if any, will be at the sole discretion
of the Company;
(c) the
value of this Award is an extraordinary item of compensation that does not constitute regular compensation for services rendered to the
Company or any Subsidiary or Affiliate and which is outside the scope of Grantee’s employment or other service contract, if any;
(d) this
Award is not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating termination,
severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension, retirement benefits, or similar payments;
(a) the
future value of the Shares issued under the Award or otherwise under the Plan, if any, is unknown and cannot be predicted with certainty;
(b) this
Award is not intended to replace any retirement benefits or compensation and is not part of normal or expected salary or compensation
for any purpose, including but not limited to calculating severance payments, if any, upon termination of employment or other Continuous
Service;
(c) no
claim or entitlement to compensation or damages arises from the termination of this Award or diminution in value of this Award or Shares
received under the Plan, and Grantee irrevocably releases the Company from any such claim; and
(d) nothing
contained in this Award Agreement is intended to constitute or create a contract of employment or other service, nor shall it constitute
or create the right to remain associated with or in the employ of the Company or any Subsidiary or Affiliate for any particular period
of time; this Award Agreement shall not interfere in any way with the right of the Company or any Subsidiary or Affiliate to terminate
the Grantee’s employment or other service at any time, with or without cause, subject to applicable laws.
12. Adjustment
of Shares. Upon the occurrence of events described in, and in accordance with the provisions of, Section 10 of the Plan, the
Company shall make appropriate adjustments in the number of Shares covered by the Award. Except as provided in Section 10 of the
Plan, Grantee shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any
dividend or any other increase or decrease in the number of shares of stock of any class. Any issue by the Company of shares of stock
of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall
be made with respect to, the number of Shares subject to the Restricted Share Units. The grant of the Restricted Share Units pursuant
to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of
its business or assets.
13. Notices.
Except as may be otherwise provided by the Plan, any written notices provided for in the Plan and this Award Agreement shall be in writing
and shall be deemed sufficiently given if either hand delivered or if sent by fax or overnight courier, or by postage paid first class
mail. Notices sent by mail shall be deemed received three business days after mailed but in no event later than the date of actual receipt.
Notice may also be provided by electronic transmission, if and to the extent permitted by the Committee. Notices shall be directed, if
to Grantee, at Grantee’s address indicated by the Company’s records, or if to the Company, at [address], attention [ ].
14. Severability.
The provisions of the Award Agreement are severable and if any one or more provisions may be determined to be illegal or otherwise unenforceable,
in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
15. Counterparts;
Further Instruments. The Award Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. The parties hereto agree to execute such further instruments
and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Award Agreement.
16. Amendment.
The Award Agreement may be amended or modified by the Committee, including amendments and modifications that may affect the tax status
of the Award, provided that such action may not, without the consent of Grantee, impair any rights of Grantee under the Award
Agreement.
17. Entire
Agreement; Governing Law. The Plan and this Award Agreement constitute the entire agreement of the parties with respect to the subject
matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Grantee with respect to
the subject matter hereof, and may not be modified except by means of a writing signed by the Company and Grantee. The construction,
interpretation, performance and enforcement of this Award Agreement shall be governed by the internal substantive laws, but not the choice
of law rules, of the State of Delaware. For purposes of litigating any dispute that may arise directly or indirectly from this Award
Agreement, the parties hereby submit and consent to the exclusive jurisdiction of the State of Delaware and agree that any such litigation
shall be conducted only in the courts of Delaware or the federal courts of the United States located in Delaware and no other courts.
CONSENT OF SPOUSE
The undersigned spouse of
Grantee agrees that his/her/their interest, if any, including any community property interest, in the Restricted Share Units and any
Shares issued thereunder is subject to the foregoing Award Agreement between Grantee and the Company shall be irrevocably bound by such
Award Agreement. The undersigned further agrees that Grantee’s decisions or execution of any documents with respect to the Restricted
Share Units and any Shares covered by such Award Agreement shall be the decision, signature or deed of the undersigned and irrevocably
bind the undersigned as if the undersigned had made such decisions, executed such documents or performed such acts done by the undersigned’s
spouse.
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Spouse of Grantee (if any): |
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(signature) |
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Name: |
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Date: |
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Exhibit 99.4
VSEE HEALTH, INC.
2024 EQUITY INCENTIVE PLAN
RESTRICTED STOCK AWARD AGREEMENT
VSee Health, Inc.,
a Delaware corporation (“Company”), hereby grants an Award of Restricted Stock, subject to the terms, conditions, and restrictions
of the Company’s 2024 Equity Incentive Plan (the “Plan”), and this Restricted Stock Award Agreement, including Appendix
A attached hereto (the Restricted Stock Award Agreement and Appendix A are collectively referred to as the “Award Agreement”).
The capitalized terms used in the Award Agreement that are defined in the Plan shall have the same meanings herein as are set forth in
the Plan.
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Grantee: |
[name] |
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Grant Date |
[date] |
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Total Number of Shares of
Common Stock (“Shares”) Granted |
[number] |
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Lapse of Restrictions: |
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The restrictions imposed on the Restricted
Stock shall lapse as set forth below. Except as otherwise provided in the Award Agreement, Grantee will not be eligible to retain Shares
of the Restricted Stock unless the Grantee has Continuous Service through the applicable vesting date, as set forth below. Such restrictions
shall lapse with respect to:
[number]
Shares on [date]
[number]
Shares on [date]
[number]
Shares on [date]
[number]
Shares on [date]
Termination
of Service:
In the event Grantee’s Continuous
Service terminates, whether such termination of Continuous Service is by the Company or by Grantee, the Restricted Stock shall have been
earned only to the extent that the restrictions on the Restricted Stock have lapsed prior to such termination in accordance with the
schedule set forth above and shall not accelerate on a pro rata (or any other) basis. Upon such termination of Continuous Service, Grantee
shall forfeit the balance of such Restricted Stock as to which the restrictions have not yet lapsed, and the Restricted Stock so forfeited
shall be returned to the Company.
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VSEE HEALTH,
INC. |
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By: |
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Title: |
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Grantee acknowledges and
represents that Grantee is familiar with the terms and provisions of this Award Agreement and hereby accepts same subject to all its
terms and provisions hereof.
Grantee hereby agrees to
accept as binding, conclusive and final all decisions or interpretations of the Board of Directors or its duly appointed Committee upon
any questions arising under the Plan.
APPENDIX A
TERMS AND CONDITIONS FOR RESTRICTED STOCK
1. Grant.
The Company grants to Grantee an Award for the number of Shares of Restricted Stock set forth in the Award Agreement, subject to the
terms and conditions of the Plan, which is incorporated herein by reference. In the event of a conflict between the terms and conditions
of the Plan and this Award Agreement, the terms and conditions of the Plan shall prevail.
2. Term.
Subject to earlier lapse of restrictions for the Shares of Restricted Stock as provided in the Plan, the restrictions set forth herein
shall lapse in accordance with the provisions of Section 4 below. This Award Agreement shall terminate when all of the Shares of
Restricted Stock either have vested in accordance with Section 4 or have been forfeited upon Grantee’s termination of Continuous
Service with the Company and its Affiliates.
3. Restrictions
on Transfer. [Grantee shall enter into and shall be bound by any stockholders’ agreement in effect from time to time that includes
holders of Common Stock.] The Award shall be nontransferable and shall not be assignable, alienable, saleable, or otherwise transferable
by Grantee other than by will or the laws of descent and distribution or pursuant to a “domestic relations order” (as defined
in Code Section 414(p)(1)(B)). Shares of Stock that have vested and are no longer subject to restrictions pursuant to Section 4
may be transferred by Grantee, subject to applicable federal and state securities law restrictions [and the terms and conditions of any
stockholders’ agreement]. The terms of this Award Agreement shall be binding upon the executors, administrators, heirs, successors
and assigns of Grantee. No non-permitted transferee of Grantee shall have any right in or claim to any Restricted Stock.
4. Lapse
of Restrictions.
(a) Time
Vesting. The restrictions shall lapse with respect to the Shares of Restricted Stock covered by this Award, in the installments set
forth in the Award Agreement, provided that Grantee’s Continuous Service continues through the specified dates.
(b) Change
in Control. Upon a Change in Control as defined in Section 17 of the Plan, the Board or the Committee may make any determinations
and take any actions permitted under Section 11 of the Plan.
(c) Action
by Committee. The Committee shall have the authority, in its sole and absolute discretion, to remove any or all of the restrictions
applicable to such Shares of Restricted Stock whenever the Committee may determine that such action is appropriate by reason of changes
to applicable tax or other laws.
5. Fractional
Shares. No fractional shares shall be delivered to Grantee. Any fractional shares shall be rounded down to the nearest whole number,
provided that such fractional shares shall be aggregated and vested on the date when all restrictions lapse or expire.
6. Legends.
(a) If
Restricted Stock is held in certificated form, certificates representing Shares of Restricted Stock issued pursuant to the Award Agreement
shall bear the following legend:
“The Shares
of Stock represented by this certificate have been acquired for investment and not with a view to, or in connection with, the sale or
distribution thereof. No such sale or disposition may be effected without an effective registration statement related thereto or an opinion
of counsel satisfactory to VSee Health, Inc. that such registration is not required under the Securities Act of 1933.”
(b) If
Restricted Stock is held in certificated form, until all restrictions lapse, certificates representing Shares of Restricted Stock issued
pursuant to the Award Agreement shall bear the following legend:
“The sale
or other transfer of the Shares of Stock represented by this certificate, whether voluntary, involuntary, or by operation of law, is
subject to certain restrictions on transfer as set forth in the VSee Health, Inc. 2023 Equity Incentive Plan, and in the associated
Restricted Stock Award Agreement. A copy of the Plan and such Restricted Stock Award Agreement may be obtained from VSee Health, Inc.”
(c) The
Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation
of any of the provisions of this Award Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay
dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.
(d) To
the extent any Restricted Stock is held in book-entry form, such book-entry designation shall contain the same restrictions as set forth
above as would otherwise be placed on any certificates and in each such case, the Company shall notify its transfer agent of the restrictions
set forth herein.
7. Escrow.
(a) Until
all restrictions have lapsed, the Secretary or such other escrow holder as the Committee may appoint, shall retain custody of the stock
certificates or book-entry shares representing the Restricted Stock subject to the Award; provided, however, that in no event shall Grantee
retain physical custody of any certificates representing Shares of Restricted Stock awarded to him or her.
(b) Grantee
further agrees that simultaneously with his or her execution of the Award Agreement, he or she shall execute stock powers in favor of
the Company with respect to the Shares of Restricted Stock granted hereunder in the form attached hereto and that he or she shall promptly
deliver such stock powers to the Company.
8. Rights
as a Stockholder. Upon the delivery of Restricted Stock to the escrow holder pursuant to subsection 7(a), Grantee shall have all
the rights of a stockholder of the Company with respect to the Restricted Stock, subject to the terms and conditions of this Award Agreement,
including the right to vote the Restricted Stock and the right to receive all dividends or other distributions paid or made with respect
to the Restricted Stock; provided, however, that any additional Shares of Restricted Stock to which Grantee shall be entitled as a result
of stock dividends, stock splits, or any other form of recapitalization in respect of Shares of Restricted Stock shall also be subject
to the terms and conditions of this Award Agreement until the restrictions on the underlying Shares of Restricted Stock lapse or expire.
Grantee acknowledges that any dividends paid to Grantee with respect to any Share of the Restricted Stock prior to the lapse of any restrictions
with respect to such Share shall be compensation income rather than dividend income unless Grantee has made an election under Section 83(b) of
the Code with respect to such Share.
9. Removal
of Legends on Certificates and Return of Stock Powers. When restrictions lapse and the Company delivers to Grantee the certificates
in respect of shares of Stock or book-entry shares, Grantee shall also receive back the related stock powers held by the Company pursuant
to subsection 7(b) above. The distributed shares of Stock shall be free of the restrictions and such certificate, if any, shall
not bear the legend provided for in Section 6(b) above (but shall continue to bear the legend provided in Section 6(a) above,
if applicable).
10. Code
Section 83(b) Election. Grantee acknowledges that he or she has been informed and is aware of the following
income tax consequences resulting from the receipt and vesting of the Shares of Restricted Stock:
(a) With
respect to the Shares that are vested on the Grant Date, Grantee will be taxed currently on their Fair Market Value on the Grant Date.
(b) With
respect to the Shares that are not vested on the Grant Date, Grantee will be taxed on the Fair Market Value of such Shares as and when
the restrictions lapse in accordance with the provisions of the Award Agreement (such fair market value determined on such vesting dates),
unless Grantee files an election pursuant to Section 83(b) of the Code (and any similar state tax provisions if applicable).
If such an election is made, Grantee will be taxed currently on the full fair market value of the unvested Shares on the Grant Date.
Any such election must be filed by Grantee with the Internal Revenue Service and, if necessary, the proper state taxing authorities,
within 30 days of the receipt of the Shares. A form of Election under Section 83(b) is attached hereto. GRANTEE
ACKNOWLEDGES THAT IT IS HIS OR HER SOLE RESPONSIBILITY AND NOT THE COMPANY’S (i) TO DETERMINE WHETHER OR NOT TO MAKE ANY ELECTION
UNDER SECTION 83(b) OF THE CODE, AND (ii) IF GRANTEE DETERMINES TO MAKE ANY SUCH ELECTION, TO TIMELY FILE SUCH ELECTION
UNDER SECTION 83(b) OF THE CODE, EVEN IF GRANTEE ASKS THE COMPANY OR ITS REPRESENTATIVE TO MAKE THIS FILING ON HIS OR HER BEHALF.
(c) Grantee
shall notify the Company immediately in writing in the event Grantee makes an election under Section 83(b) of the Code (or
any successor provision) or corresponding provisions of state or local tax laws with respect to the Restricted Stock.
11. Separate
Advice and Representation. The Company is not providing Grantee with advice, warranties, or representations regarding any of the
legal, tax, or business effects to Grantee with respect to the Plan or this Award Agreement. Grantee is encouraged to seek legal, tax,
and business advice from Grantee’s own legal, tax, and business advisers as soon as possible. By accepting this Award and the shares
of Stock covered thereby, and by signing this Award Agreement, Grantee acknowledges that Grantee is familiar with the terms of the Award
Agreement and the Plan, that Grantee has been encouraged by the Company to discuss the Award and the Plan with Grantee’s own legal,
tax, and business advisers, and that Grantee agrees to be bound by the terms of the Plan and the Award Agreement.
12. Tax
Withholding.
(a) The
Company will assess its requirements regarding federal, state, and local income taxes, FICA taxes, and any other applicable taxes (“Tax
Items”) in connection with the Restricted Stock. These requirements may change from time to time as laws or interpretations change.
The Company will withhold Tax Items as required by law. Regardless of the Company's actions in this regard, Grantee acknowledges and
agrees that the ultimate liability for Tax Items is Grantee’s responsibility. Grantee acknowledges and agrees that the Company:
(i) makes
no representations or undertakings regarding the treatment of any Tax Items in connection with any aspect of the Restricted Stock, including
any subsequent sale of Shares acquired under the Plan; and
(ii) does
not commit to structure the terms of the Restricted Stock or any aspect of the Restricted Stock to reduce or eliminate liability for
Tax Items.
(b) Notwithstanding
any contrary provision of this Award Agreement, no certificate representing the Shares of Restricted Stock or book-entry Shares will
be issued or delivered to Grantee, unless and until satisfactory arrangements (as determined by the Committee) have been made by Grantee
with respect to the payment of income, employment, and other taxes which the Company determines are to be withheld with respect to such
Shares. The Committee, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit Grantee
to satisfy such tax withholding obligation, in whole or in part (without limitation) by one or more of the following: (i) paying
cash, (ii) delivering to the Company already vested and owned Shares having an aggregate Fair Market Value (as of the date the withholding
is effected) equal to the amount required to be withheld, or (ii) by authorizing the Company to hold back a number of Shares otherwise
deliverable to Grantee through such means as the Company may determine in its sole discretion (whether through a broker or otherwise)
having an aggregate Fair Market Value (as of the date the withholding is effected) equal to the amount required to be withheld.
13. No
Acquired Rights or Employment Rights. Grantee agrees and acknowledges that:
(a) the
Plan is established voluntarily by the Company, is discretionary in nature, and may be modified, amended, suspended or terminated by
the Company at any time;
(b) the
grant of this Award under the Plan is voluntary and occasional and does not create any contractual or other right to receive future grants
of any Awards or benefits in lieu of any Awards, even if Awards have been granted repeatedly in the past and regardless of any reasonable
notice period mandated under local law, and all decisions with respect to future grants of Awards, if any, will be at the sole discretion
of the Company;
(c) the
value of this Award is an extraordinary item of compensation that does not constitute regular compensation for services rendered to the
Company or any Subsidiary or Affiliate and which is outside the scope of Grantee’s employment or other service contract, if any;
(d) this
Award is not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating termination,
severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension, retirement benefits, or similar payments;
(d) the
future value of any Shares awarded under the Plan, if any, is unknown and cannot be predicted with any certainty;
(e) this
Award is not intended to replace any retirement benefits or compensation and are not part of normal or expected salary or compensation
for any purpose, including but not limited to calculating severance payments, if any, upon termination of employment or other Continuous
Service;
(f) no
claim or entitlement to compensation or damages arises from the termination of this Award or diminution in value of this Award or Shares
received under the Plan, and Grantee irrevocably releases the Company from any such claim; and
(g) nothing
contained in this Award Agreement is intended to constitute or create a contract of employment or other service, nor shall it constitute
or create the right to remain associated with or in the employ of the Company or any Subsidiary or Affiliate for any particular period
of time; this Award Agreement shall not interfere in any way with the right of the Company or any Subsidiary or Affiliate to terminate
Grantee’s employment or other service at any time, with or without cause, subject to applicable laws.
14. Adjustment
of Shares. Upon the occurrence of events described in, and in accordance with the provisions of, Section 10 of the Plan, the
Company shall make appropriate adjustments in the number of Shares covered by the Award. Except as provided in Section 10 of the
Plan, Grantee shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any
dividend or any other increase or decrease in the number of shares of stock of any class. Any issue by the Company of shares of stock
of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall
be made with respect to, the number of Shares of Restricted Stock subject to the Award. The grant of the Restricted Stock pursuant to
the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes
of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business
or assets.
15. Notices.
Except as may be otherwise provided by the Plan, any written notices provided for in the Plan and this Award Agreement shall be in writing
and shall be deemed sufficiently given if either hand delivered or if sent by fax or overnight courier, or by postage paid first class
mail. Notices sent by mail shall be deemed received three business days after mailed but in no event later than the date of actual receipt.
Notice may also be provided by electronic transmission, if and to the extent permitted by the Committee. Notices shall be directed, if
to Grantee, at Grantee’s address indicated by the Company’s records, or if to the Company, at [address], attention [ ].
16. Severability.
The provisions of the Award Agreement are severable and if any one or more provisions may be determined to be illegal or otherwise unenforceable,
in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
17. Counterparts;
Further Instruments. The Award Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. The parties hereto agree to execute such further instruments
and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Award Agreement.
18. Amendment.
The Award Agreement may be amended or modified by the Committee, including amendments and modifications that may affect the tax status
of the Award, provided that such action may not, without the consent of Grantee, impair any rights of Grantee under the Award
Agreement.
19. Entire
Agreement; Governing Law. The Plan and this Award Agreement constitute the entire agreement of the parties with respect to the subject
matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Grantee with respect to
the subject matter hereof, and may not be modified except by means of a writing signed by the Company and Grantee. The construction,
interpretation, performance and enforcement of this Award Agreement shall be governed by the internal substantive laws, but not the choice
of law rules, of the State of Delaware. For purposes of litigating any dispute that may arise directly or indirectly from this Award
Agreement, the parties hereby submit and consent to the exclusive jurisdiction of the State of Delaware and agree that any such litigation
shall be conducted only in the courts of Delaware or the federal courts of the United States located in Delaware and no other courts.
CONSENT OF SPOUSE
The undersigned spouse of
Grantee agrees that his/her/their interest, if any, including any community property interest, in the Shares subject to the foregoing
Award Agreement between Grantee and the Company shall be irrevocably bound by such Award Agreement. The undersigned further agrees that
Grantee’s decisions or execution of any documents with respect to the Shares covered by such Award Agreement shall be the decision,
signature or deed of the undersigned and irrevocably bind the undersigned as if the undersigned had made such decisions, executed such
documents or performed such acts done by the undersigned’s spouse.
| |
Spouse of Grantee (if any): |
| |
|
| |
|
| |
(signature) |
| |
|
| |
Name: |
|
| |
|
| |
Date: |
|
ASSIGNMENT SEPARATE FROM CERTIFICATE
FOR VALUE RECEIVED the undersigned hereby sells,
assigns and transfers unto VSee Health, Inc., a Delaware corporation (the “Company”) _________________ (_________)
shares of the Company’s common stock, no par value, standing in the undersigned’s name on the books of said corporation represented
by Certificate No. ____ delivered herewith, and does hereby irrevocably constitute and appoint the Corporate Secretary of the Company,
as attorney-in-fact, to transfer the said shares of stock on the books of the said corporation with full power of substitution in the
premises.
SECTION 83(b) TAX ELECTION
This statement is being made under Section 83(b) of
the Internal Revenue Code, pursuant to Treas. Reg. Section 1.83-2.
(1) Name:
______________________________________________________________
Address: ___________________________________________________________
___________________________________________________________
Social Security No.: __________________
| (2) | The property with respect to which the election is being made is ______________
shares of the common stock of VSee Health, Inc., a Delaware corporation (“Shares”). |
| (3) | The date on which the Shares were acquired is __________________,
20__. |
| (4) | The taxable year in which the election is being made is the calendar
year 20__. |
| (5) | The property is subject to surrender and cancellation if for any reason
the taxpayer ceases to be [an employee/a service provider] the issuer prior to specified
vesting dates. This restriction lapses in accordance with the terms of an agreement between
the company and taxpayer. |
| (6) | The fair market value at the time of transfer (determined without
regard to any restriction other than a restriction which by its terms will never lapse) is
$________ per share. |
| (7) | The amount paid for such property is $
per share. |
| (8) | A copy of this statement was furnished to VSee Health, Inc.,
for whom taxpayer rendered the services underlying the transfer of property. |
| (9) | This statement is executed as of _________________, 20__. |
Signature: _____________________________
Taxpayer
_____________________________
Taxpayer’s
Spouse, if any
NOTE: To
make the election, this form must be filed with the Internal Revenue Service Center with which taxpayer files his/her Federal income
tax returns. The filing must be made within thirty (30) days after the Grant Date of the Restricted Stock Award Agreement.
Exhibit 107
Calculation of Filing
Fee Table
Form S-8
CaliberCos Inc.
Table 1: Newly Registered
Securities
Security
Type | |
Security
Class
Title | |
Fee
Calculation
Rule(1) | |
Amount
to be
Registered(2) | | |
Proposed
Maximum
Offering
Price
per Share(1) | | |
Maximum
Aggregate
Offering Price | | |
Fee
Rate | | |
Amount of
Registration
Fee | |
| Equity | |
Common Stock, par value $0.0001 per share | |
Other | |
| 2,544,021 | | |
$ | 1.33 | | |
$ | 3,383,547.93 | | |
$ | 0.00015310 | | |
$ | 518.02 | |
| |
Total Offering Amounts | |
| | | |
| | | |
$ | 3,383,547.93 | | |
| | | |
$ | 518.02 | |
| |
Total Fees Previously Paid | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| Total Fee Offsets |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
Net Fee Due | |
| | | |
| | | |
| | | |
| | | |
$ | 518.02 | |
| (1) |
Calculated solely for purposes of this offering under Rules 457(c) and 457(h) of the Securities Act on the basis of the average of the high and low prices per share of Registrant’s Common Stock on October 3, 2024 as reported by The Nasdaq Stock Market. |
| (2) |
Covers 2,544,021 shares of the Registrant’s common stock, par value $0.0001 per share (“Common Stock”) issuable under the VSee Health, Inc. 2024 Equity Incentive Plan (the “Plan”). In addition, pursuant to Rule 416 promulgated under the Securities Act of 1933, as amended (the “Securities Act”), this registration statement shall also be deemed to cover any additional shares of Common Stock that may from time to time be offered or issued under the Plan described herein as these amounts may be adjusted as a result of stock splits, stock dividends, anti-dilution provisions or similar transactions that increase the number of outstanding shares of Common Stock. |
VSee Health (NASDAQ:VSEEW)
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VSee Health (NASDAQ:VSEEW)
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