DEF 14A 1 skyebioscience-definitivep.htm DEF 14A Document
美國
證券交易委員會
華盛頓特區20549 
14A議程 
(規則14a-101)
14A表格資訊 
根據1934年證券交易所法第14(a)條的代理聲明
1934年證券交易所法案 
申報人提交 x
由非登記人士提交 o
請選擇適當的方框：
o
初步代理聲明書
o
機密，僅供委員會使用 (適用於第14a-6(e)(2)條規定) 
x
肯定的代理人聲明
o
最终补充资料
o
根據§240.14a-12號條款的徵求材料。
SKYE BIOSCIENCE, INC. 
(根據其章程所指定的登記人姓名)
(如代表沒有立案者之代理性報表之名稱)
支付申報費（請勾選適當方框）：
x
不需要任何費用。
o
已在初步材料中支付費用。
o
根據《交易所法》第14a6(i)(1)條和0-11條，根據附件中的表格計算的費用


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11250 El Camino Real, 100號套房
聖地牙哥，CA 92130
(858) 410-0266
誠摯邀請您參加股東虛擬特別會議（「會議」） 或稱為「特別會議」，Skye Bioscience, Inc.，一間內華達州公司（「公司」），將於2024年10月22日（星期二）太平洋時間上午10點舉行虛擬會議。隨函附上的代理人申明書（「代理人申明書」）詳細說明了有關特別會議的信息，包括股東在特別會議上將考慮的提案描述以及提交您投票的說明。
我們非常重視您的投票。無論您是否打算以虛擬方式參加特別會議，我都鼓勵您按照附上的代理聲明中所列的指示盡快投票。我們的董事會已一致通過代理聲明中提出的建議，我們建議您贊成該建議。
感謝您持續對本公司的支持。我們期待您參加特別會議。
真誠地,
/s/ Punit Dhillon
董事長兼首席執行官


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11250 El Camino Real, 100號套房
聖地牙哥，CA 92130
(858) 410-0266
股東特別會議通知 
親愛的股東：
誠摯邀請您參加Skye Bioscience, Inc.特別股東大會（“特別大會”），該大會將於2024年10月22日星期二上午10時太平洋時間以虛擬會議形式舉行，僅透過互聯網的現場網絡直播，不設實體參加。您將能夠通過在www.virtualshareholdermeeting.com/SKYE2024Sm輸入您獨特指定的控制編號來參加和參與虛擬特別大會，在那裡您將能夠現場收聽虛擬特別大會、提交問題和投票。為了參加虛擬特別大會，您必須擁有附上的代理卡上顯示的控制編號。將不會設置實體會議地點，您將無法親自參加虛擬特別大會。我們一如既往地鼓勵您在虛擬特別大會之前投票您的股份。
現在要就以下事項進行投票：
(1)批准修訂和重訂全面激勵計劃（“修訂和重訂計劃”），其中包括通過增加修訂和重訂計劃下可發行股份的數量1,535,655股（“股權激勵計劃提議”）。
業務項目將在附隨本通知的代理人聲明書（“代理人聲明書”）中更詳細地描述，並通過參考納入本通知。本董事會已將2024年9月11日業務結束時確定為特別會議的記錄日期。只有在該日期業務結束時作為記錄股東的股東才可以在特別會議上或者其任何休會或延期中進行投票。
關於於2024年10月22日星期二上午10時（太平洋時間）舉行的虛擬股東特別大會代理文件的供應重要通知，會議將通過www.virtualshareholdermeeting.com/SKYE2024Sm上的現場網絡網絡線上直播。
代理材料可通過訪問互聯網訪問 www.proxyvote.com ，使用您註冊和受益持有人的16位控制碼。您也可以在訪問這些材料 https://materials.proxyvote.com/83086J ，而無需控制號碼。
董事會指示，
/s/ Punit Dhillon
Punit Dhillon
董事長兼首席執行官
加利福尼亞州聖地亞哥
2024年9月23日
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誠摯邀請您參加虛擬特別會議。無論您是否打算參加虛擬特別會議，請投票。除了在虛擬特別會議上線上投票外，您也可以通過互聯網、電話或填寫、簽署並郵寄所附的代理卡進行投票。投票說明已包含在附上的代理卡中。
即使您已透過代理投票，您仍可在虛擬股東大會上進行網上投票。請注意，如果您的股份由經紀人、銀行或其他代理持有，並且您希望在虛擬股東大會上投票，您必須遵循這些組織的指示，並需要從持股人那裡獲得以您的名義發行的代理卡。
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目 錄
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SKYE BIOSCIENCE, INC.
11250 El Camino Real, 100號套房
聖地牙哥，CA 92130
(858) 410-0266
PROXY聲明書
股東特別會議
將於2024年10月22日星期二舉行
Skye Bioscience, Inc.董事會正在徵求附上的代理，以供在2024年10月22日（星期二）上午10時舉行的股東特別會議使用。該特別會議將是一次虛擬會議，將透過現場網絡直播進行。
關於代理材料供應的重要通知
2024年10月22日（星期二）將舉行股東特別會議：
該代理人聲明（“代理人聲明”）可在網址查閱。 www.virtualshareholdermeeting.com/SKYE2024SM.
有關特別會議的問題和答案
為什麼我收到這些資料？ 
我們向您發送了這些代理材料，因為我們的董事會（"董事會"）正就將於2024年10月22日星期二太平洋時間上午10:00，在www.virtualshareholdermeeting.com/SKYE2024Sm舉行的Skye生物科技股份有限公司特別股東大會（"特別大會"）徵求您的代理，在此之前或延期。我們邀請您參加虛擬特別大會，就代理書中描述的提案進行投票。但是，您無需參加會議即可投票。您只需填寫、日期、簽署並退回隨函附上的代理卡，或按照以下說明透過電話或網路投票。參加虛擬特別大會的股東將享有與他們在現場會議上一樣的權利和參與機會。

我們打算在2024年9月23日左右郵寄這些代理材料給所有記錄股東，他們有權在虛擬特別股東大會上投票。
我如何參加特別會議？ 
特別會議將於2024年10月22日星期二上午10:00太平洋時間以虛擬形式舉行，在網絡直播的方式，不設實體會面。若您在2024年9月11日業務結束時是股東（即「記錄日期」），則有資格參加特別會議。您可以透過訪問 www.virtualshareholdermeeting.com/SKYE2024Sm 來進入虛擬特別會議，屆時您可以聆聽會議直播、提交問題並進行線上投票。您可以透過提供的連結並在虛擬特別會議預定開始時間的15分鐘內，使用您的代理卡或投票指示表上包括的控制號碼來進入虛擬特別會議。
股東可以在虛擬特別股東大會開始前和中途15分鐘提交問題，並透過現場網路轉播進行投票。在虛擬特別股東大會期間提出的適當問題將在虛擬特別股東大會期間被宣讀並回答。
我們建議您在太平洋時間上午10:00之前15分鐘先登錄，以確保您在虛擬特別會議開始時已經登錄。網上報到將開始，股東可以開始提交書面
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問題將於太平洋時間上午9:45。 在虛擬特別大會期間，您將能夠提交問題。 我們鼓勵您提交任何與虛擬特別大會業務相關的問題。
您可以在虛擬特別股東大會之前或期間以其他方式投票。請參閱下文的“我如何投票”以透過電話、網路或提前完成、簽署並退回代理卡來投票至虛擬特別股東大會。您在郵件中收到的代理卡或投票指示表中含有透過這些方式投票的說明。如果您計劃在虛擬特別股東大會期間投票，即使您已經退回了代理，您仍可以這樣做。
我需要什麼才能參加虛擬特別會議？
在虛擬特別股東會期間，您需要在代理卡或投票指示表上包含的控制編號，才能投票或在會議中提問。 如果您沒有控制編號，您將只能作為訪客聆聽會議，並無法在虛擬特別股東會中投票或提問。 有關如何通過網際網路連接和參與虛擬特別股東會的說明已張貼在www.virtualshareholdermeeting.com/SKYE2024Sm。
如果在虛擬特別會議期間遇到技術困難或無法訪問虛擬特別會議的直播網絡怎麼辦？
在虛擬特別會議當天，如果您在現場網路直播中遇到任何困難，請撥打將在虛擬特別會議登入頁面張貼的技術支援電話號碼尋求協助。
誰可以在特別會議上投票？ 
所有板塊在截至記錄日期業務結束時持股的股東都有權在虛擬特別大會上投票。在記錄日期當日，共有30,338,290股普通股無數可投票。記錄日期股東名冊將供股東查閱，於我們上述地址的主要執行辦公室正常業務時間內查閱，為期10天直至虛擬特別大會前一天結束。
持股人記錄：以您的名義註冊的股份 
如果在股東名冊日期，您的股份直接在我們的過戶代理ClearTrust, LLC下註冊，那麼您就是持股記錄的股東。作為持股記錄的股東，您可以通過虛擬參加特別股東大會進行投票，或通過代理進行投票。無論您計劃是否出席虛擬特別股東大會，我們都建議您填寫並返回所附的代理卡，或按照以下指示透過電話或互聯網進行代理投票，以確保您的投票被計入。
受益所有人：股份登記在經紀人或銀行的名下 
如果在記錄日您的股份並非以您的名義持有，而是在券商、銀行、經紀人或其他類似機構的賬戶中，則您是以「街名」持有的股份的受益所有人，並且這些代理材料是由該機構轉寄給您的。持有您帳戶的組織被視為在虛擬特別會議上的記錄股東。作為受益股東，您可以通過在特別會議上虛擬出席進行投票，或者通過在您的投票指示表上找到的指示進行代理投票。請使用投票指示表上找到的16位控制號碼進行線上投票和虛擬股東大會的出席。
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我在投票什麼？ 
有一個提案正在呈交股東表決：
•批准修訂和重訂全面激勵計劃（“修訂和重訂計劃”），其中包括通過增加修訂和重訂計劃下可發行股份的數量1,535,655股（“股權激勵計劃提議”）。
特別會議中是否能決定其他事項？
不根據我們修訂後的章程（「章程」），特別會議上要進行的業務僅限於特別會議通知中所述的目的或目的。因此，權益激勵計劃提案是特別會議或任何其延期進行的唯一事項。
我們的董事會一致推薦股東投票贊成提案一中列出的每個董事候選人，並推薦股東投票贊成提案二和提案三。
我們董事會全體一致建議投票「贊成」股權激勵計劃提案。 如果您通過互聯網投票，電話投票，或簽署並郵寄委任書但未作出具體選擇，則您的股份將根據我們董事會的建議進行投票。 請參見“如果我返回已簽署的委任書或以其他方式投票但未作出具體選擇，會發生什麼？請參見下文。
我該如何投票？
您可以投票「贊成」、「反對」或者棄權對股權激勵計劃提議進行投票。
投票程序如下：
股票的登記持有人：以你的名義註冊的股票
如果您是記錄股東，則可以在虛擬特別會議期間進行投票，通過電話委託投票，通過互聯網委託投票，或使用隨函附上的委託卡進行委託投票。無論您是否計劃參加虛擬特別會議，我們都建議您通過代理投票以確保您的投票被計算。即使您已經通過代理進行了投票，您仍然可以參加虛擬特別會議並在會議期間在線投票。
會議期間進行投票： 要在虛擬特別會議期間在線投票，請按照提供的說明加入 www.virtualshareholdermeeting.com/SKYE2024Sm，在2024年10月22日星期二上午10:00太平洋時間開始。
通過電話投票：要通過電話投票，請撥打免費電話1-800-690-6903，使用任何按鍵電話，並按照錄音提示操作。您將被要求提供附有代理卡的控制號碼。您的電話投票必須在2024年10月21日週一晚上11:59（東部時間）之前收到，才會計入。您將被要求提供附有代理卡的控制號碼。
通過互聯網進行投票要通過互聯網投票，請在www.proxyvote.com上填寫電子代理卡。您將被要求提供附上的代理卡上的控制號碼。您的互聯網投票必須在2024年10月21日星期一晚上11:59之前收到，才能計入。
使用代理表投票： 要使用隨函附的代理卡投票，只需填寫、簽名並在隨函附的代理卡上日期，並迅速將其放入我們提供的信封中寄回，或者寄回至投票處理處，地址： Broadridge，51 Mercedes Way，Edgewood，NY 11717。如果您在虛擬特別大會前將簽署的代理卡寄還給我們，我們將按照您的指示投票。如果您在虛擬特別大會前將簽署的代理卡寄還給我們，我們將按照您的指示投票。
受益所有人：以經紀人或銀行名義登記的股票
如果您是以您的經紀人、銀行或其他代理人的名義註冊的股份的受益所有人，您應該已收到一份包含這些代理資料的選舉指示表，而不是來自Skye。只需按照選舉指示表的指示確保您的投票被計算。另外，您可以按照您的經紀人或銀行的指示通過電話或互聯網進行投票。在虛擬特別會議期間在線投票時，您需要您選舉指示表上包含的控制編號。
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我們提供互聯網代理投票，讓您可以在線投票，我們制定了程序以確保您的代理投票指示的真實性和正確性。 但請注意，您必須承擔與您的互聯網訪問相關的任何費用，如來自互聯網接入提供商和電話公司的使用費。
我有多少票？
您在記錄日收盤時擁有的每股普通股票將獲得一票投票權。
如果我不投票會發生什麼？ 
股票的登記持有人：以你的名義註冊的股票 
如果您是持股記錄的股東，未通過完成您的代理卡、電話、互聯網或在特別會議上親自投票，您的股份將不會被投票。
有益所有者：股份登記在經紀人或銀行名下（經紀人不投票權） 
如果您是有益所有人，而沒有告知您的經紀人、銀行或其他代理如何投票您的股份，那麼您的經紀人或代理是否仍能夠投票您的股份取決於納斯達克資本市場有限責任公司（「納斯達克」）是否認爲特定提案是「例行」事項。經紀人和代理可以自行決定投票「未指示」股份，涉及被視爲「例行」事項的事宜，但不能涉及「非例行」事宜。 如果持有您股份的組織未收到您如何投票有關「非例行」事宜的指示，該組織將通知選舉主管，說明它沒有權力就您的股份在該事項上進行投票。一般稱之爲「經紀人棄權票」。請參見“券商「無投票」是指券商持有受益所有人的街頭名稱的股份，但有關股東未給予他們關於股東未投票的給予投票的指示。2024年要點。
根據紐約證券交易所的規則和業績解讀，「非例行」事項，如股權激勵計劃提案，可能會對股東的權利或特權產生重大影響。因此，在股權激勵計劃提案或特別股東大會上將不會有代理人棄權投票。
請記住，如果你是以街頭名稱持有的股票的受益所有人，則必須在你從經紀人、銀行或其他代理人處接收到的文件中規定的截止日期前向你的經紀人、銀行或其他代理人提供投票指示，以確保你的股份按你的意願進行投票。
如果我返回已簽署的委任書或以其他方式投票但未作出具體選擇，會發生什麼？ 
如果您簽署並日期在代理投票卡上，或以其他方式投票而未在您有權表決的事項上做出選擇，則您的股份將根據董事會建議投票。在特別會議上提交表決的所有事項中，您的股份將被投票「贊成」股權激勵計劃提議。
「經紀人棄權」是什麼？它們是否計入確定法定人數？
如上所述，經紀人持有代表受益所有者的股份但未按照特定提案進行投票即發生非代理投票，原因是（1）經紀人未收到受益所有者的投票指示， （2）經紀人無權對特定事項的股份進行投票。經紀人有權在沒有受益所有者指示的情況下對「日常事項」進行投票。另一方面，在沒有受益所有者對此類股份提供指示的情況下，經紀人無權對受益所有者持有的股份在非日常事項上進行投票，例如股權激勵計劃提案。 因此，在股權激勵計劃提案或特別大會上不會發生非代理投票。
什麼是棄權，棄權會被如何處理？
參加虛擬特別會議但未投票的人持有的股份，以及代理投票所代表的對股權激勵計劃提議的棄權，將計入到確定法定人數出席情況的目的。"棄權"代表股東拒絕在某項提議上投票的積極選擇。棄權不被視爲已投票，對股權激勵計劃提議沒有影響。
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誰支付此次委託投票的費用？ 
我們將支付全部代理徵求的費用，包括準備、彙編、通過互聯網提供、打印和郵寄本份代理聲明、代理卡以及向股東提供的任何額外信息。除了這些代理材料，我們的董事和員工還可能以面對面、電話、電子郵件或其他通訊方式徵求代理。董事和員工不會因徵求代理而獲得額外的報酬。我們也可能 報銷經紀人、銀行或其他代理商將代理材料轉發給受益所有者的成本。然而，請注意您需承擔與您的互聯網服務相關的任何費用，比如來自互聯網接入提供商或電話公司的使用費。
如果我收到了多套代理材料，代表什麼含義？
如果您收到多份代理材料，您的股份可能是以多個名稱或不同帳戶註冊的。請按照每張代理卡上的投票說明進行投票，確保所有股份都被投票。
如果提交了委託卡後我能否更改我的投票？
股票的登記持有人：以你的名義註冊的股票
是的。您可以在虛擬特別股東大會最終投票之前隨時撤銷您的代理權。如果您是您的股份的記錄持有人，您可以通過以下任一方式撤銷您的代理權：
•您可以提交另一張填寫正確並且日期較晚的代理投票卡。
•您可以通過電話或者互聯網授權進行後續代理。系統會要求您提供所附代理卡上的控制號碼。
•您可以及時發送書面通知，撤銷授權代理到Skye的公司秘書處，地址爲11250 El Camino Real，100號套房，San Diego，CA 92130。
•您可以在虛擬特別會議期間投票。僅僅參加虛擬特別會議並不會自動撤銷您的代理權。即使您計劃參加虛擬特別會議，我們建議您也提交您的代理或投票指示，或通過電話投票，或在www.proxyvote.com上完成電子代理卡，以便在以後決定不參加虛擬特別會議時也能計算您的投票。
您最新的代理卡或電話或互聯網代理是被計算的。
受益所有人：以經紀人或銀行名義登記的股票
如果您的股票由經紀人、銀行或其他代理人以名義持有，您應遵循經紀人、銀行或其他代理人提供的指示。
如何計票？
特別股東大會選定的選舉管理員將負責統計投票結果，分別計票「贊成」，「反對」和棄權。
批准該提案需要多少票？
根據內華達州法律和我們的章程，股權激勵計劃提案將由出席特別會議的持有人所投票的多數決定，或者由代理人投票來確定（意味着投票「贊成」某項提案的股份數必須超過投票「反對」該提案的股份數）。
僅「支持」和「反對」投票將被計算，以確定與股權激勵計劃提案相關的投票數。棄權將不被視爲對該事項進行投票的股份。因此，棄權對股權激勵計劃提案不會產生影響。
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什麼是法定人數要求？
股東會需要有法定人數才能舉行虛擬特別會議。 如果持有公司普通股投票權至少佔已發行流通股份的大部分的股東通過虛擬出席特別會議或由代理人代表出席，將有法定人數。在記錄日期，有30,338,290股流通並有權投票。因此，持有15,169,146股的股東必須通過虛擬出席或由代理人代表在特別會議上出席以形成法定人數。
棄權票將計入法定人數要求。如果沒有法定人數，由參加網絡特別會議的股東表決或代理人或特別會議主席代表的股東出席的股份佔多數的持有人可以將網絡特別會議延期至另一日期。
我的投票是保密的嗎？
代理指示、選舉委託和識別個別股東的投票統計數據將以保護您的投票隱私的方式處理。您的投票不會在公司內部或第三方中被披露，除非：(1)根據適用法律要求有必要，(2)爲了投票的統計和認證，以及(3)爲了促進成功的代理徵求。偶爾，股東會在他們的代理卡上提供書面評論，這些評論可能會轉給我們的管理層。
我有反對者評估的權利嗎？
根據內華達州法律或我們的公司章程，我們的股東在特別股東大會上投票事項上沒有評估權。
我該如何查看虛擬特別會議的投票結果？
初步投票結果將在虛擬特別會議上公佈。此外，最終投票結果將在我們預計在虛擬特別會議後的四個工作日內向SEC提交的8-k表格中公佈。如果最終投票結果無法及時提供給我們以在虛擬特別會議後的四個工作日內提交8-k表格，我們打算提交8-k表格以發佈初步結果，並在了解最終結果後的四個工作日內提交另一份8-k表格以發佈最終結果。.
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提案一：董事競選
批准股權激勵計劃提案
總體來說
董事會要求我們的股東批准對公司修訂和重述2014年全面激勵計劃的第二修正案和重述（在此等修訂和重述之前，稱爲「2014計劃」）。2024年9月10日，經過慎重考慮，董事會批准了對公司2014計劃的第二次修正案和重述，前提是股東在特別會議上批准。爲配合公司2014計劃的第二次修正和重述，此計劃的名稱更新爲「Skye Bioscience, Inc.修訂的全面激勵計劃」，我們在本代理聲明中稱2014計劃經第二次修正和重述後的版本爲「修訂後的計劃」。
公司董事會請求我們的股東批准修訂後的計劃，以便：
•按照修訂後的計劃，增加1,535,655股股票授予所授予的股票獎勵數量，同時保留自動股票補充功能，即自2023年1月1日開始，並於2023年1月1日至2032年1月1日期間（含2023年1月1日），每年一月一日，股票數量將按照前一年12月31日尾數股票的5%增加，但董事會保留規定較少數量的權利；
•增加根據修訂後的計劃可授予的激勵期權（「ISOs」）的最大數量至4,000,000股；和
•將修訂後的計劃的到期日期延長至49,197（在董事會通過修訂後的計劃後的十年）。
上述討論的修正案是通過這份股權激勵計劃提案對修訂和修訂計劃進行的唯一修正案，需要股東批准。我們還將進行以下不重要的修正，這些修正無需股東批准，即使股東不批准股權激勵計劃提案，也將進行所有這些修正。
•技術修訂以反映當前適用的股權激勵計劃相關規章制度，包括刪除最初設計用於符合現已廢除的1986年《內部營收法典》第162(m)條款下績效補償例外的條款。
•通過接受股權激勵計劃獎項，每位獎勵的受益人都受公司的激勵報酬回撥政策的約束，以及公司未來可能制定的任何其他回撥政策；
•增加一項規定，限制在任何一個日曆年度向非僱員董事支付的總薪酬；並
•爲管理員提供更廣泛的權力，以判斷在控制權變更時處理未清償的股權獎勵，包括取消已獲授和未獲授的獎勵、假設或替代獎勵、加速授予、以現金支付或其他財產取消已獲授的獎勵，或以現金激勵計劃替換獎勵。
我們董事會一致批准，並建議我們的股東批准附附在此的修訂和重新制定計劃。 附錄A.
股權激勵計劃背景
T2014年計劃最初獲董事會批准，並於2014年10月31日生效。 我們的董事會和股東在2022年批准了對2014年計劃的修正和重申，這項修正和重申將可以在2014年計劃下發行的股份數量固定爲364,880股，並規定自2023年1月1日開始，直到2032年1月1日（包括在內），每年1月1日，股份數量將增加相當於前一年12月31日股份總額的5％，除非董事會批准較少的增加。2023年1月1日，根據上述自動股份補充功能，2014年計劃下可發行的股份數量增加了182,706股，總計達到547,586股。上述數字是在2023年9月完成的1股對250股的逆向股票拆分（「逆向拆分」）後生效。

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2023年8月，我們的董事會和大部分持有我們發行的普通股的股東批准了對2014年計劃的修正案，將授權發行的股份數量增加到1,846,883股，同時保留上述自動股票補充功能。2024年1月1日，根據上述自動股票補充功能，2014年計劃下可發行的股份數量增加了617,462股，總計達到2,464,345股。

目前，2014年計劃下僅剩21,215股可發行。
申請股份儲備增加的背景
如上所述，我們正在尋求股東批准修訂後的計劃，其中包括上述其他事項，授權在修訂後的計劃下發行額外的1,535,655股普通股，並保留自動股票補充功能直至2032年1月1日。
修訂後的計劃旨在通過吸引優秀人才、促進留任和激勵僱員和其他符合條件的參與者來推動公司利益，其中包括通過收購公司普通股的方式。在確定修訂後計劃擬議的增加金額時，董事會薪酬委員會（「薪酬委員會」）考慮了一系列因素，下文將進一步討論，包括我們的歷史股權授予慣例、2014年計劃剩餘可用股數、吸引、留任和激勵僱員和其他參與者所需池子規模，以及該池子規模相對於公司普通股總數和相對於考慮到某些未行使的預先資助認股權證（如下所定義）後實際存在的公司普通股總數。

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截至2024年9月11日，我們的普通股股份總數爲30,338,290股，納斯達克報告的每股普通股的收盤價爲6.35美元。如下表所示，假設修訂後的計劃獲批，根據修訂後的計劃，我公司普通股授出的股份總數及待發行的股份總數將爲3,986,864股，約佔流通股數的13%，不包括已發行的預融資認股權證（如下文所定義）。
根據2014年
401(k)計劃的僱主貢獻		經修改和批准後
修訂計劃（2）
流通股數 (1)
30,338,29030,338,290
尚待執行的股權獎勵所涉及的股票（#）
2,429,9942,429,994
可供授予的股票（#）
21,2151,556,870
作爲已發行股份的比例授權發行的股票數（%） (3)(4)
8.1 %13.1 %
(1)包括 30,338,290 截至目前爲止流通的普通股數量爲 我們致力於保持高水平的公司治理標準，以服務於Methode和我們的股東的長期利益。 .
(2)假設股東在特別會議上批准修訂後的計劃。
(3) 通過將2014計劃下尚未行權的股權獎勵所對應的股份數量與2014計劃下可供授予的股份數量或根據修訂後計劃批准所可供授予的股份數量之和（即(i)），除以截至我公司普通股已發行股份數量（即(ii)），得出的比率。 我們致力於保持高水平的公司治理標準，以服務於Methode和我們的股東的長期利益。 .
(4)上述的計算未考慮行使預資的權證，以購買高達8,677,166股我們普通股，行使價格爲每股0.001美元，這些預先資助的權證可由各自持有人隨時選擇行使，且永不到期（"預資的權證"）。下表呈現與以上相同的信息，但將預資的權證包含在流通股份的計算中：
根據2014年
401(k)計劃的僱主貢獻		在...的情況下
經修訂和
更新計劃
已發行股份（含預融資權證）
39,015,45639,015,456
尚未執行的股權激勵計劃股份（#）
2,429,9942,429,994
可供授予的股份（#）
21,2151,556,870
已授權股份佔已發行股份的百分比（帶預備融資認股權）（%）
6.3 %10.2 %
我們及董事會相信，在我們的招聘、留任和薪酬計劃中，通過將股權激勵獎勵作爲重要組成部分授予員工和其他合格的受益人在我們的股權激勵計劃下是至關重要的，以確保我們持續的成功。在修訂和重新制訂計劃下授權額外股份用於未來發放期權或其他股權獎勵將使我們能夠招聘、留任、激勵和激勵員工、戰略顧問和非僱員董事。生物製藥行業對經驗豐富人員的競爭激烈。我們認爲使用股權激勵作爲招聘和留任工具尤爲重要，同時確保我們在預期員工增長的情況下保持靈活性，隨着我們推進優先研發產品nimacimab的開發並持續前進，我們的使命是通過開發調節G-蛋白偶聯受體的下一代分子來開闢新的代譚途徑以推動新的治療途徑來促進新的代譚途徑。因此，我們相信修訂和重新制訂計劃提供的增加將使我們能夠提供一個股權激勵計劃，以與同行競爭爭奪關鍵人才並支持我們未來的增長。
我們的補償理念體現了股權激勵的廣泛資格，我們向幾乎所有員工以及非僱員董事和其他符合條件的收件人授予股權激勵。然而，我們意識到我們股權激勵計劃下的股權激勵有可能 dilute 現有股東，因此，我們非常謹慎地管理我們股權薪酬計劃的增長。我們致力於有效監測我們的股權激勵股份儲備，包括我們的「燃燒速率」和總潛在稀釋，以確保我們
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通過授予適量的股權激勵，以吸引、激勵、激勵並留住員工、非僱員董事和顧問，最大化潛在股東的價值。

ISO限額和計劃期限延長

2014計劃的到期日目前是2032年6月14日。經修訂的計劃將經修訂的計劃的到期日延長至2034年9月10日（即董事會通過經修訂的計劃後的十年）。上述自動補充條款的期限不會延長超過其目前的到期日期，即2032年1月1日。

根據2014年計劃，可授予的ISOs的最大數量爲2,464,345，前提是該數量將在每年1月1日自動增加，並在2022年6月14日截至（包括）20232年1月1日，相當於99185，即普通股總股數的5%。經修訂和重訂的計劃將可授予的ISOs的最大數量增加到4,000,000，並更新年度增加的參考日期，規定可授予的ISOs的最大數量將在2024年9月10日截至（包括）2032年1月1日自動增加，數量相當於1,516,915，即普通股總股數的5%。
修訂並重新制定計劃的描述
以下是修訂後的計劃的主要特點摘要。這份摘要並非完整內容，並受到所附的修訂後的計劃全文的限制， 附錄A 該代理聲明中引用並參考此處的。在以下摘要中使用的大寫詞彙，如未在本代理聲明中另有定義，均應參照修訂後的計劃中所述含義。
目的和合格參與者。 修訂後的計劃的目的是吸引、留住和獎勵高素質的高管、僱員、非僱員董事和向公司及其子公司提供服務的顧問，以激勵我們的高管、非僱員董事、員工和顧問實現長期企業目標，讓這些人能夠獲取公司的專有權益。所有員工（包括高管）、非僱員董事和顧問都有資格參與修訂後的計劃。
截至2024年9月11日，有五名非僱員董事，十七名僱員和十七名顧問有資格被選中，獲得修訂和重擬計劃下的獎勵。
管理. 根據修改和重訂計劃的條款，董事會，或者由董事會自行決定的由不少於兩名董事組成的董事會委員會將管理修改和重訂計劃（董事會或該委員會，稱爲「管理者」）。 管理者有權完全決定何時向何人授予獎勵，包括每項獎勵的類型、金額、付款形式和其他條款和條件，符合修改和重訂計劃的規定。此外，管理者有權解釋修改和重訂計劃及根據修改和重訂計劃授予的獎勵，並制定修改和重訂計劃的管理規則和規定。管理者可能將與該計劃相關的某些行政職責委託給一個小組委員會或我們的官員，包括維護獎勵記錄和解釋獎勵條款。管理者將在決定各自獎勵的類型和金額時考慮其認爲相關的因素。
獎勵類型。 修訂後的計劃允許管理員確定的數量和條款頒發以下類型的獎勵（「獎勵」）：
期權。 期權可能是特別指定爲符合《法典》第422條的ISOs或非合格股票期權（「NSOs」）。 期權的數量、價格和條件由管理員確定。 每個期權的行使價格將由管理員確定，前提是該價格不得低於授予日我公司普通股的公允市場價值。 期權的期限可以由管理員設定，但在任何情況下，期權的行使期限不得超過授予日後的十年。 期權的受讓人在未成爲任何此類股份的記錄所有人之前，對任何受期權覆蓋的股份沒有股東權利。
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股票增值權利。 一般情況下，在行使股票價值增長權（SAR）時，受讓人將會收到現金、公司普通股股份，或者現金和普通股的組合，價值等於超出的部分：（i）行使當天普通股的市價，減去（ii）此SAR的行權價格或授予價格。 SAR的行權價格或授予價格以及所有其他條款和條件將由管理員全權決定，並遵循並符合修訂後計劃的條款。
限制性股票授予限制性股票授予包括授予給參與者的股票，受到一項或多項沒收風險和/或轉讓限制的約束，這可能基於績效標準、服務期間、參與者保留普通股制定的指定數量的股票所有權，或管理員規定的其他標準。限制股獎的受讓人有權自授予日起投票並領取與獎項基礎股票相關的分紅，前提是任何分配的普通股作爲分紅或以其他方式與任何限制股份相關的普通股，應受到一樣的限制。
限制性股票單位（「RSUs」）限制性股票單元（RSUs）包括權利，即在將來根據管理員設定的條款、條件和限制而獲得股份，這些限制可能基於績效標準、任職期、參與者保留擁有特定數量普通股的時間，或者其他標準。RSUs的受讓人在權益的解除或放棄以及發放與該獎勵相關的普通股之前，不具有任何股東權益。
績效獎勵績效獎勵包括有權在管理員確定的績效期間內達成績效目標後獲得支付（以現金或普通股股份或現金和普通股的組合）的權利。績效獎勵的獲得者在發行普通股份之前（如果有的話），對獎勵涵蓋的任何股份均沒有股東權利。
其他獎項其他基於股票的獎勵，包括股票購買權、普通股獎勵，或者根據普通股價值整體或部分確定的獎勵，可以單獨或者除了和/或與修訂和重訂計劃下的其他獎勵一起獲得。根據修訂和重訂計劃的規定，行政人員應有權利判斷授予此類獎勵的人員，確定授予此類獎勵的時間或時間，授予根據此類獎勵應授予的普通股份數，以及獎勵的所有其他條件。
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績效目標。 修訂後的計劃允許與獎勵相關的歸屬、支付、結算和其他權利受制於包含基於績效條件的項目或事件。這些基於績效的條件可能包括但不限於以下內容：淨利潤或損失（無論是利息、稅費、折舊、攤銷和非現金權益報酬開支之前或之後）；總銷售額或淨營業收入或銷售額或營業收入增長；淨利潤（稅前或稅後）或調整後的淨利潤；利潤（包括但不限於總利潤、淨利潤、利潤增長、淨營業利潤或經濟利潤）、利潤回報比率或營業利潤率；預算或營業收益（稅前或稅後或在將公司管理費用和獎金分配之前或之後）；現金流（包括營運現金流和自由現金流或資本現金流回報）；資產回報率；資本回報率或投入資本；資本成本；股東權益回報率；股東的總回報；銷售回報率；成本、成本減少和成本控制措施；費用；營運資本；每股收益或每股虧損；調整後的每股收益或每股虧損；每股價格或每股分紅（或股價或分紅的增長或維持）；監管成就或合規性；與研發、監管、商業或戰略里程碑或進展相關的目標實施、完成或達成；市場份額；市值；經濟價值或增加值模型；部門、群體或公司財務目標；客戶滿意度/增長；客戶服務；員工滿意度；人員招聘和保留；人力資本管理（包括多樣性和包容性）；訴訟監督和其他法律事務；戰略合作伙伴關係和交易；財務比率（包括衡量流動性、活動性、盈利能力或槓桿比率的比率）；債務水平或減少；與銷售相關的目標；融資和其他資本籌集交易；手頭現金；收購活動；投資來源活動；以及營銷倡議，任何這些都可能按絕對值或相對於任何增加或減少來測量。這些績效目標也可能僅基於公司的績效或公司或公司子公司的子公司、部門、業務部門或業務單元的績效，或者基於相對於其他公司的績效或與其他公司的績效指標的比較。
普通股數量根據修訂和重新制定的計劃規定，根據修訂和重新制定的計劃頒發的獎勵所需發行的普通股數量將爲4,000,000股，前提是自2023年開始，直至2023年1月1日（含）結束的每年1月1日，該數量將按照前一年12月31日尚未流通的普通股數量的5%遞增。儘管如前所述，但董事會可能在給定年份的1月1日之前採取行動，以確定當年不會進行1月1日的增加，或當年的增加量會少於上述規定的普通股數量。根據修訂和重新制定的計劃提供的任何普通股均由公司授權但尚未發行的普通股或公司已回購的已發行普通股組成。根據2014年計劃，根據其中提供的調整，根據2014年計劃頒發的獎勵所需發行的普通股數量爲2,464,345股，前提是自2024年開始，直至2023年1月1日（含）結束的每年1月1日，該數量將按照前一年12月31日尚未流通的普通股數量的5%遞增。儘管如前所述，在2014年計劃下，董事會可能在給定年份的1月1日之前採取行動，以確定當年不會進行1月1日的增加，或當年的增加量會少於上述規定的普通股數量。
根據修訂及重新制定計劃中規定的調整，按照行使ISO的最大普通股股份發行數量爲 4,000,000，前提是該數量將在2023年1月1日至2032年1月1日之間（含當日）每年自動增加，增加幅度爲1,516,915，相當於董事會批准修訂和重新制定計劃時普通股總數的5%。儘管如前所述，董事會可以在給定年份的1月1日之前採取行動，以確定該年將不會發生1月1日的增加或該年的增加數量將少於上述規定的普通股數量。根據2014年計劃，在其中規定的調整下，按照行使ISO的最大普通股股份發行數量爲1,846,883，前提是該數量將在2023年1月1日至2032年1月1日之間（含當日）每年自動增加，增加幅度爲99,185，相當於2022年6月14日普通股總數的5%。儘管如前所述，在2014年計劃中，董事會可以在給定年份的1月1日之前採取行動，以確定該年將不會發生1月1日的增加或該年的增加數量將少於上述規定的普通股數量 above。

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未行使的期權或 SARs 的普通股份，或者終止或放棄的獎勵所覆蓋的普通股份，以及作爲其他獎勵； 轉讓的普通股份可能再次成爲修訂後計劃下的新獎勵對象。 公司用於支付或滿足期權行使價或獎勵相關的稅款扣除義務而被放棄或被公司扣留的普通股份，將可供新獎勵的授予，根據修訂後計劃。 關於 SARs 的行使，不論是與期權一起授予與否，只有實際發行用於支付此類 SARs 的普通股份的數量才會計入股份儲備。
對董事獎勵的限制修訂後的計劃增加了對任何非僱員董事在任何財政年度內（或一個非僱員董事開始服務或擔任董事會主席或主任獨立董事的日曆年度內）提供的股權獎勵和現金補償價值合計的1,000,000美元限制（或在非僱員董事擔任董事會主席或主任獨立董事的任何日曆年度內的1,500,000美元限制）。管理員可對個別非僱員董事作出此限制的例外，正如管理員可以自行判斷的那樣。
修正和終止。 董事會具有完全的權力和權威，在任何時候修改或終止修訂後的計劃，但董事會不得在未獲得公司股東必要批准的情況下進行任何根據法典或任何其他適用法律或任何公司普通股上市的證券交易所規則要求股東批准的修改。未經持有人書面同意，不得修改或終止修訂後的計劃，不得對任何未解決獎勵的權利造成不利影響。
期限 修訂後的計劃將繼續有效，直至2034年9月10日，或者在董事會採取行動終止前到期。
某些調整在任何公司事件或交易（包括但不限於普通股份變更或公司資本結構調整）的情況下，例如合併、合併、重組、資本重組、分立、部分或完全清算、股票分紅、股票拆分、股票合併或反向股票拆分、分拆、分拆、或公司股票和財產的其他分配，普通股份的股票組合或交換，實物分紅，或者資本結構的其他類似變動，普通股份的大量股東發行數量，公司股東（除了正常現金分紅）的股份分配，或任何類似企業事件或交易，管理者爲了防止權益持有人的稀釋或增大，可以做出公平和適當的調整和替代，對於未結業獎勵所適用的股份數量和種類，這些股票的購買價格或行權價格，調整爲將來發行的股份數量和種類根據修訂版計劃的，以及在任何日曆年度向任何被授權者發行的股份數量，和適用於未結業獎勵的其他判斷。管理者有權力和唯一裁量權來確定每種情況中應進行的調整金額。
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控制變化。 根據修訂後的計劃，如果發生控制權變更、合併或其他公司交易，導致公司無法生存，除非與參與者簽訂個別協議另有規定，所有未解決的獎勵將按照明確的交易協議中描述的方式處理（或者如果沒有這樣的協議，則由管理員決定）。 在明確的交易協議或管理員確定的處理方式可能包括以下一項或多項：（i）無償取消獎勵；（ii）承擔或替換獎勵，並調整股票或其他證券或財產的數量或種類以及適用的行權價、基數金額或購買價格；（iii）加速獎勵的解除限制；（iv）取消已解除限制的獎勵，並向持有此類已解除限制獎勵的授予者支付以每股金額爲基礎的款項，用現金支付或者由管理員單方面決定以其他必要的考慮形式支付，使受託人在變更控制時如同在其轉讓授予時立即前的持股數量得到的移交物、現金或證券（或兩者的組合）與此相關，少授予價格或基數金額；但是，僅當每股計價高於適用行權價格或基數金額時，已解決限權和解決SAS持有人才有權獲得此類考慮；如果每股價較適用行權價格或基數金額低於或等於適用行權價格或基數金額，此類已解決限制權和解決SAS將無償取消；或（v）用保留替換獎勵價值的現金激勵計劃替換獎勵（根據變更控制時的獎勵價值確定）。2014計劃規定，除非在適用獎勵協議的條款中另有規定，否則在控制權變更時不會發生任何未解決獎勵的加速解除限制。 這些規定已在修訂後的計劃中被刪除。 2014計劃還規定，在併購、重組或類似交易時，未解決獎勵將根據主導交易的併購或其他協議中提供的方式處理，這可能提供獎勵的繼續或替換，或者加速解除獎勵或現金或現金等價物支付獎勵。這一規定已根據修訂後的計劃進行了更新，如上所述。
除非管理員決定或允許進行某些有限的讓與，否則僱員持有的獎勵和任何這樣獎勵下的權利均不得轉讓、轉移、出售或其他方式處置，除非通過遺囑或法定繼承和分配。 根據修訂後的計劃，參與者的權利和利益不得通過遺囑或繼承和分配法律以外的方式轉讓，而且在參與者的有生之年，只有參與者本人（或參與者的個人代表）才能行使修訂後的計劃下的權利。
收回條款根據《修訂與重訂計劃》，在獲得的所有獎項將按照公司根據任何國家證券交易所或協會的掛牌標準要求採用的追索政策進行追索，或者按照多德-法蘭克-沃爾街改革與消費者保護法或其他適用法律要求的任何追索政策進行追索，以及公司出於適用和允許的法律的其他追索政策。此外，行政人員可能會根據行政人員認爲必要或適當的情況，在獎項協議中添加其他追索、回收或追索規定，包括但不限於在解僱發生時對先前獲得的普通股或其他現金或財產享有重新收購權。2014計劃未包含追索條款。
美國聯邦所得稅影響
根據此次代理聲明日期上生效的《法典》和其下規定，「修訂和重新制定計劃」下可能提供的獎勵適用於美國聯邦稅法的討論以及根據該獎勵行權或結算後獲得的股票處置。參與修訂和重新制定計劃的稅收後果可能因參與國家而異。此外，參與修訂和重新制定計劃的稅收後果可能因個人情況而異，並且需要注意所得稅法律、法規及其解讀經常變化。參與者應當諮詢其自己的稅務顧問，以獲取關於適用於他們的具體稅收後果的建議，包括聯邦、地方和外國稅收法律的適用性和影響。本摘要假定摘要中描述的所有獎勵都免於或符合《法典》第409A條款的要求。
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非合格股票期權根據修訂後的計劃授予NSO通常不會對獎勵接收者或公司產生任何美國聯邦所得稅後果。在行使NSO時，獎勵接收者通常需按普通報酬收入適用的稅率繳納所得稅，該稅率爲期權行使價與行使日期股票的公允市值之間的差額。對於員工，該收入一般會按照美國聯邦所得稅和就業稅的扣繳標準納稅。公司（或子公司）通常有權扣除由獎勵接收者認可的收入金額，受《法典》第162(m)條或第280G條可能強加的限制。獎勵接收者隨後處置我們普通股的任何盈利或虧損將根據股票行使後持有股票時間是否超過一年而獲得長期或短期資本收益或資本損失待遇。公司不會就任何此類收益獲得減免。
期權股票獎勵。 根據修訂和重新制定的計劃授予ISO將不會對獎勵接收者或公司產生任何美國聯邦所得稅後果。獎勵接收者在行使ISO時不需要繳納美國聯邦應稅收入（受下文討論的最低備用稅規定約束），公司在行使時也不會獲得抵扣。在ISO行使獲得的股票處置時，稅務後果取決於獎勵接收者持有我公司普通股的時間。如果獎勵接受者在ISO授予後兩年內或在ISO行使後一年內未處置股份，則獎勵接收者將承認長期資本收益（或損失），即股份的銷售價格與行使價之間的差額。在這些情況下，公司無權獲得任何抵扣。
如果獎勵受益人未能滿足上述任一持有期限，獎勵受益人必須在處置年度認可普通收入，這被稱爲「違規處置」。這種普通收入的數額通常是以下兩者中較低的一個：(i)處置所得額與行權價之間的差額，或者(ii)行權日普通股的公允市場價與行權價之間的差額。超過作爲普通收入徵稅數額的任何收益將視爲長期或短期資本收益，具體取決於普通股是否持有超過一年。公司在違規處置年度，可能有資格扣除獎勵受益人認可的普通收入數額，但可能受到《法典》第162(m)條和第280G條規定的可能限制。
ISO下的"價差"——即普通股份行權時的公平市場價值與行權價格之間的差額——在行權年被分類爲調整項目，用於替代最低稅額。如果獲獎者的替代最低稅額超過獲獎者的常規所得稅責任，獲獎者將需要支付更多的稅款。爲了避免ISOs相關的替代最低稅額，獲獎者必須在同一日曆年內賣出這些股票。然而，在行權當年銷售股票將構成上述所述的違規處理。
股票增值權。 獲得股票贈與權的受讓人通常不應在行使該權利之前認可收入，假設該權利的價值沒有上限且《稅收法典》第409A條不適用。一旦行使，獲獎受讓人通常會根據實際獲得的現金數量和股票的公允市值（如果有）爲美國聯邦所得稅目的認可應稅普通收入。對於僱員來說，這種收入通常會受到美國聯邦所得稅和就業稅目的的預扣。公司（或子公司）一般有權依照獲獎受讓人所認可的收入金額來進行所得稅扣除，但可能會受到《稅收法典》第162(m)條或第280G條的潛在限制。獲獎受讓人將會在處置通過股票贈與權行使而獲得的任何普通股後，根據上述原則中所載的普通股所產生的應稅普通收入的超額部分（i）與其處置所實現的金額（ii）之間的差額而認可收益。該收益將視股票持有時間是否超過一年而納稅爲長期或短期資本收益。
限制性股票。 限制性股票通常會使受益人在普通股票的購買價格（如果有的話）超過普通股票的公允市值的部分產生普通補償收入，而這些限制解除的日期就是股票的公允市值的日期。對於員工而言，這種收入通常會被用於支付美國聯邦所得稅和就業稅。公司（或子公司）通常有權扣除由受益人認可的普通收入金額，但受可能由法典第162(m)條和第280G條規定的限制。受益人隨後出售股票的任何收益或損失將根據持有股票的時間長度以及限制解除後的時間，會接受長期或短期資本收益或損失的待遇。公司不會因受益人的任何此類收益而獲得減稅。
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受限股股權接收人可以根據稅法第83(b)條款（「第83(b)選舉」）選擇，即認可在限制性股票授予時作爲普通薪酬收入的金額，即支付的股票的金額與授予日期的股票的公允市場價值之差。如果做出了這樣的選舉，接收人在任何限制解除時不再計入任何薪酬收入，並且後續處置的任何收益或損失將作爲長期或短期資本收益納入接收人。第83(b)選舉必須在授予限制性股票獎勵的30天內進行。
公司（或附屬公司）通常將有權扣除稅款，扣除範圍和年度應以獎勵受益人確認的普通收入爲準，但受《稅收法案》第162（m）和第280G條款可能施加的限制。
受限制股票單位。 普通股單位的受讓人通常不應該在這些單位轉換爲現金或股票之前認識收入，除非《法典》第409A條適用。一旦轉換，獎勵受讓人通常會就聯邦收入稅目的而言，認識到與所轉換時收到的現金和普通股的公允市場價值相等的應稅普通收入。對於員工，這種收入通常受美國聯邦收入稅和就業稅目的的預扣稅。公司（或子公司）通常有權扣除獎勵受讓人認識到的收入金額，但受《法典》第162(m)條或第280G條的可能限制。獎勵受讓人將在轉讓任何在普通股單位結算後收到的股票時，認識到收益，等於（i）這種轉讓所實現的金額與（ii）根據上述原則所認識到與這些股票有關的普通收入之間的超額。這種收益將根據股票持有期是否超過一年而應稅爲長期或短期資本收益。
其他股票和現金獎勵在收到股權獎勵時，普遍情況下，普通股股票的價值和所收到的現金金額將被視爲參與者的普通收入。在以現金結算現金獎勵時，參與者通常將認識等於收到現金的普通收入，而公司（或其子公司）通常會在那時獲准相應的聯邦所得稅減免，但受《法典》第162（m）和280G條款可能的減免限制。
分紅派息和分紅等價物。 獲得股票獎勵的受益人，如果獲得與此類獎勵相關的分紅或股息等價物，則應當就所收到的任何分紅和股息等價物支付承認應納稅的普通收入，該收入須按照美國聯邦所得稅和就業稅目的代扣代繳。公司（或子公司）通常有權扣除參與者認可的收入金額作爲所獲得的收入稅務抵免，但可能受到法典第162節（m）或第280G節的規定所加的限制，同時條件也是公司扣除應繳稅款（如有必要）並個人的總薪酬被認爲是合理數額。
遵守《稅收法》第409A 條款。 在適用範圍內，旨在修訂和重新制訂的計劃及在其下進行的任何授予應符合或豁免《法典》第409A條的規定，以便《法典》第409A條(a)(1)項的收入包含規定不適用於參與者。修訂和重新制訂的計劃及在其下進行的任何授予將按照此意圖進行管理和解釋。
上述只是美國聯邦所得稅法修訂和重整計劃交易的摘要，基於本代理說明書日期生效的美國聯邦所得稅法。應參閱法典的相關條款。本摘要並非完整，也未討論獎勵獲得者死亡的稅務後果，以及獎勵獲得者可能受到的任何市政、州政或外國國家的稅法。
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上述內容僅爲針對根據修訂後的計劃發放和行使獎勵而涉及的美國聯邦所得稅影響的摘要。它並不旨在全面討論，並且沒有討論個人死亡的稅務後果或任何符合條件個人可能居住的任何市鎮、州或外國國家的所得稅法規定。
2014年計劃下的計劃福利 
下表詳細列出了截至2024年9月11日，根據2014年計劃授予的每個個人和各個組織所持有的普通股獎勵總數。
姓名和職務股數
Punit Dhillon
首席執行官
594,379 
Kaitlyn Arsenault
致富金融(臨時代碼)官
346,254 
所有現任高管作爲一組 1,388,761 
所有現任非高管董事作爲一組 572,254 
每位董事候選人
— 
​
— 
每位獲得或將獲得5%期權、warrants或權利的其他人
— 
所有僱員，包括所有不是執行官的現任官員作爲一組
364,678 
2018年計劃的優惠和其他獎勵是自主決定的，我們無法確定以後會向任何特定的人或組提供多少個數或類型的優惠或其他獎勵。
經重訂計劃獲得的獎勵，如果獲得股東批准，將是自主的，並且尚未就重訂計劃下獎勵的授予或分配做出具體決定。因此，目前無法確定公司的員工、董事、顧問或其他服務提供商在修訂計劃下可能獲得的福利。
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發行股票期權的證券 
以下表格中包含了截至2023年12月31日2014年計劃的以下信息。
股權激勵計劃信息
計劃類別數量
股票的
普通的
待發行的股票
行使未行使的
期權、warrants以及
權益證書
(a)		加權授予日期公允價值的平均數
平均行使價格
認股權和配股權
期權和認股權
(b)		擁有的股數
普通股票餘額
未來可用
發行
根據股權補償計劃
股票補償
計劃（不包括股票
普通股
反映在a列中）
(c)
股東批准的股權激勵計劃
2014年修訂和重新制定的全面激勵計劃1,346,075$8.96 487,672
2022員工股票購買計劃-- 130,272
未獲得股東批准的股權激勵計劃(1)
-- -
總費用1,346,075$- 617,944
(1)2024年7月2日，董事會通過了Skye Bioscience, Inc. 2024年誘因股權激勵計劃（"誘因計劃"）。 誘因計劃下的獎勵旨在符合納斯達克股票市場規則5635（c）（4）中的就業誘因授予。 公司已經爲根據誘因計劃授予的獎勵發行預留了60萬股普通股。 上述表格不包括誘因計劃下可發行股份，因爲誘因計劃在2023年12月31日之前尚未生效。

所需投票和建議
批准股權激勵計劃提案需要出席會議並投票的大多數股東投贊成票，無論是親自出席（虛擬）還是代理投票，在特別會議上有權投票的股東（即贊成該提案的股份必須超過反對該提案的股份的數量），假設出席會議的法定人數已滿足。棄權票將被計算 被視爲出席以確定法定人數的存在但不被視爲上述目的的投票，並對股權激勵計劃提案不產生影響。除非代理表上另有指示，執行代理表所代表的股份將投票贊成股權激勵計劃提案。
董事會一致建議股東投票“ ”批准股權激勵計劃提案。
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某些受益所有者和管理者的股權
截至2024年9月11日，以下表格列出了有關我們普通股受益所有權的一些信息：
•每個被認定爲持有我公司5%或更多流通普通股受益人的人；
•每位命名的高管（根據1933年證券法修正案制定的S-k條例項下的第402條定義）；
•每位董事；和
•所有高管和董事作爲一組。
除非另有註明，下表中每位股東的地址均爲Skye生物科技公司抄送。 11250 El Camino Real, 100號套房，San Diego，CA 92130除了基於13G表格和4表格的信息外，適用並公開其立項註冊申報表格S-3（登記編號333-279330）於2024年5月10日及其關於註冊申報表格S-1（登記編號333-278286）的後期生效修正聲明於2024年4月24日是根據腳註所示，受益所有權的陳述截至2024年9月11日。
根據1934年修訂的《證券交易法》第13d-3條的規定，已確定了有利益所有權。根據該規則，某些股份可能被視爲多人共同擁有（例如，如果人們共享投票權或處置股份權）。此外，如果個人有權在提供信息之日起60天內獲取股份（例如，行使期權或認股權證，或者RSU歸屬），則被視爲有利益所有權擁有該股份。在計算任何個人的持股比例時，股份數量被視爲包括由於此類獲取權利而有利地歸個人所有的股份數量。因此，如下表所示，任何個人的持有股份百分比並不一定反映個人在任何特定日期的實際投票權。
據我們所知，除本表腳註所示及根據適用的社區財產法規定外，表中所列人員對其名下所有普通股的投票權和投資權均由其獨自擁有。
有益所有人的姓名和地址受益所有權
所有權		百分比
班級的
持有超過5%股權的受益所有者
與創投創始人第七號有關的實體11,618,561
(1)
36.3 %
與創投第三號有關的實體2,530,950
(2)
8.2 %
Janus Henderson Group PLC1,727,680
(3)
5.7 %
指定執行官和董事
Punit Dhillon， 我們的CEO
328,284 
(4)
1.1 %
Kaitlyn Arsenault， 致富金融(臨時代碼)官
175,938 
(5)
*%
Deborah Charych博士， 董事
44,334 
(6)
*%
保羅·格雷森， 董事
208,022 
(7)
*%
安娜麗莎·詹金斯博士， 董事
26,666 
(8)
*%
安德魯·J·施瓦布， 董事
43,334 
(9)
*%
凱倫·史密斯博士， 董事
13,333 
(10)
*%
所有高管和董事作爲一個群體（9人）
931,822 3.0 %
_________
*表示對我們的普通股權益擁有不足1%。
(1)根據2024年9月13日向美國證券交易委員會提交的4號表，截至2024年9月13日，以下報告人持有以下股票所有權： (i) 5Am Ventures VII，L.P. （「Ventures VII」）持有8,167,206股普通股；（ii）Ventures VII持有的2023年認股權證可行使的1,705,393股普通股；（iii）5Am Ventures II，L.P. （「Ventures II」）持有1,679,685股普通股；（iv）5Am Co-Investors II（「Co-Investors II」）持有66,277股普通股。 5Am Partners VII，LLC （「Partners VII」）擔任Ventures VII的唯一普通合夥人，並就Ventures VII持有的證券享有表決權和處置權。Andrew J. Schwab和Dr. Kush Parmar是Partners VII的管理成員。Partners VII、Andrew J. Schwab和Dr. Kush Parmar中的每一位都分享表決權和
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dispositive power over the securities held by Ventures VII. 5AM Partners II, LLC (“Partners II”) serves as sole general partner of Ventures II and Co-Investors II. Andrew J. Schwab, Dr. Scott Rocklage and Dr. John D. Diekman are managing members of Partners II. Each of Partners II, Andrew J. Schwab, Dr. Scott Rocklage and Dr. John D. Diekman shares voting and dispositive power over the securities held by Ventures II and Co-Investors II. Andrew J. Schwab, one of our directors, is an affiliate of Ventures VII, Ventures II, and Co-Investors II. Each of Partners VII, Partners II, Andrew J. Schwab, Dr. Kush Parmar, Dr. Scott Rocklage and Dr. John D. Diekman disclaim beneficial ownership of such shares except to the extent of its or their pecuniary interest therein. The address of all entities affiliated with Ventures VII is c/o 5AM Ventures, 4 Embarcadero Center, Suite 3110, San Francisco, CA 94111.
(2)This information was obtained from the stockholder in connection with our filing of the Post-Effective Amendment to the Registration Statement on Form S-1 (Registration Statement No. 333-278286) on April 24, 2024 and reflects beneficial ownership as of March 20, 2024. Consists of (i) 1,995,916 shares of common stock held by Versant Venture Capital III, L.P. (“Versant III”), (ii) 520,173 shares of common stock issuable upon exercise of 2023 Warrants held by Versant III that are currently exercisable, (iii) 11,788 shares of common stock held by Versant Side Fund III, L.P. (“Side Fund III”) and (iv) 3,073 shares of common stock issuable upon exercise of 2023 Warrants held by Side Fund III that are currently exercisable. Versant Ventures III, LLC (“Versant Ventures III”) is the sole general partner of Versant III and Side Fund III. The Managing Directors of Versant Ventures III, Brian Atwood, Bradley Bolzon, Samuel Colella, William Link, Barbara Lubash, Ross Jaffe, Robin Praeger, Rebecca Robertson, Charles Warden and Don Milder, have voting and investment control over the securities held by Versant III and Side Fund III and as a result may be deemed to have beneficial ownership over such securities. The address of all entities affiliated with Ventures III is c/o Versant Ventures, One Sansome Street, Suite 1650, San Francisco, CA 94104.
(3)Based on a Schedule 13G filed with the SEC on August 14, 2024 reporting stock ownership as of August 14, 2024 with respect to the following reporting persons: Janus Henderson Group plc (“JHG”) and Janus Henderson Biotech Innovation Master Fund Ltd (“JHB”). Consists of 1,587,479 shares of common stock held directly by JHB. JHG has a 100% ownership stake in Janus Henderson Investors U.S. LLC ("JHIUS"), Janus Henderson Investors UK Limited ("JHIUKL") and Janus Henderson Investors Australia Institutional Funds Management Limited ("JHIAIFML"), (each an "Asset Manager" and collectively as the "Asset Managers"). Due to the above ownership structure, holdings for the Asset Managers are aggregated for purposes of this filing. Each Asset Manager is an investment adviser registered or authorized in its relevant jurisdiction and each furnishing investment advice to various fund, individual and/or institutional clients (collectively referred to herein as "Managed Portfolios"). As a result of its role as investment adviser or sub-adviser to the Managed Portfolios, JHIUS may be deemed to be the beneficial owner of 1,727,680 shares held by such Managed Portfolios. However, JHIUS does not have the right to receive any dividends from, or the proceeds from the sale of, the securities held in the Managed Portfolios and disclaims any ownership associated with such rights. JHB is exempt from registration as an investment company per section 3(c)(7) of the Investment Company Act of 1940 and is one of the Managed Portfolios to which JHIUS provides investment advice.  The address of JHG is 201 Bishopsgate, EC2M 3AE, United Kingdom, and the address of JHB is C/O Janus Henderson Investors US LLC, 151 Detroit Street, Denver, Colorado 80206.
(4)Includes (i) 9,343 shares of common stock held by a family trust of which Mr. Dhillon is the trustee, (ii) 34,688 shares of common stock held directly by Mr. Dhillon, (iii) 1,326 shares of common stock issuable upon exercise of warrants, (iv) and 76,392 and 206,535 shares of common stock underlying options and RSUs, respectively, that may be exercised or that may vest within 60 days of September 11, 2024.
(5)Includes 36,967 and 136,304 shares of common stock underlying options and RSUs, respectively, that may be exercised or that may vest within 60 days of September 11, 2024.
(6)Includes 44,334 shares of common stock underlying options that may be exercised within 60 days of September 11, 2024.
(7)Includes 23,333 and 184,689 shares of common stock underlying options and RSUs, respectively, that may be exercised or that may vest within 60 days of September 11, 2024.
(8)Includes 26,666 shares of common stock underlying options that may be exercised within 60 days of September 11, 2024.
(9)Includes 43,334 shares of common stock underlying options that may be exercised within 60 days of September 11, 2024.
(10)Includes 13,333 shares of common stock underlying options that may be exercised within 60 days of September 11, 2024.
23
EXECUTIVE COMPENSATION
The Company effected a reverse stock split at a ratio of one-for-two hundred and fifty (1-for-250) effective September 8, 2023 (the “Reverse Stock Split”). All share amounts and exercise prices included herein have been adjusted to reflect the Reverse Stock Split.
Summary Compensation Table 
The following table sets forth information concerning the compensation earned for services rendered to us for the years ended December 31, 2023 and 2022 of our named executive officers.
SUMMARY COMPENSATION TABLE
Name and
Principal
Position		YearSalary
($)		Bonus
($) (2)		Stock
Awards
($) (1)		Option
Awards
($) (1)		Non-Equity Incentive
Plan Compensation
($)		Total
($)
Punit Dhillon2023450,000 - 994,364 92,974 270,000 1,807,338 
CEO 2022432,577 74,000 - - 161,904 668,481 
Kaitlyn Arsenault2023340,000 - 656,234 138,056 136,000 1,270,290 
Chief Financial Officer2022325,856 55,500 - - 87,731 469,087 
___________
(1)Amounts reflect the full grant date fair value of RSUs, computed in accordance with Accounting Standards Codification (“ASC”) Topic 718 - Stock based compensation, rather than the amounts paid to or realized by the named executive officers. The valuation assumptions used in the valuation of options and RSUs may be found in Note 2 to our financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 22, 2024 (the “2023 Form 10-K”)The amount reported is also the amount that would be reported assuming the highest level of performance conditions are achieved. The RSUs vest upon achievement of the following performance milestones, subject to continued services to the Company through the applicable vesting date: an incremental 25% of the RSUs vest upon the Company achieving a market capitalization of $125 million, $250 million, $400 million and $500 million, respectively. As of December 31, 2023, no market capitalization milestone was achieved and no RSUs were vested. Amounts reflect the full grant date fair value of stock options, computed in accordance with ASC Topic 718 - Stock based compensation, rather than the amounts paid to or realized by the named executive officers. The value of stock option awards was estimated using the Black-Scholes option pricing model. The valuation assumptions used in the valuation of options and RSUs may be found in Note 2 to our financial statements included in the 2023 Form 10-K
(2)Amounts reflect the cash bonuses earned by our named executive officers for performance of services in 2023 and 2022. Bonuses were based upon achievement of corporate performance goals as determined by the Board.
Narrative Disclosure to Summary Compensation Table
Our Compensation Committee has historically determined the compensation of our named executive officers. Our Compensation Committee typically reviews and discusses management’s proposed compensation with the Chief Executive Officer for all executives other than the Chief Executive Officer. Based on those discussions and its discretion, the Compensation Committee then approves the compensation of each executive officer after discussions without members of management present.
24
Base Salary
Base salaries for our named executive officers are initially established through arm’s-length negotiations at the time of the executive officer’s hiring, taking into account such executive officer’s qualifications, experience, the scope of his or her responsibilities and competitive market compensation paid by other companies for similar positions within the industry and geography. Annual base salaries are intended to provide a fixed component of compensation to our named executive officers, reflecting their skill sets, experience, roles and responsibilities. Base salaries are reviewed, determined, and approved periodically, typically in connection with our annual performance review process, and adjusted from time to time to realign salaries with market levels after taking into account individual responsibilities, performance and experience. The annualized 2023 base salaries for our named executive officers were as follows: (i) $450,000 for Mr. Dhillon and (ii) $340,000 for Ms. Arsenault.
Annual Performance-Based Compensation
In addition to base salaries, our named executive officers are eligible to receive annual performance-based bonuses, which are designed to provide appropriate incentives to our executive officers to achieve annual performance goals and to reward them for achievement towards these goals. Performance based milestones are approved by the board at the beginning of the year and executive officers are assessed against these performance-based milestones subsequent to year end. With respect to 2023, our Compensation Committee awarded a bonus of $161,904 to Mr. Dhillon, a bonus of $87,731 to Ms. Arsenault. Please see “Employment and Severance Agreements -Employment Agreements” below for additional information.
Equity Incentives
We believe that our ability to grant equity-based awards is a valuable and necessary compensation tool that aligns the long-term financial interests of our employees, consultants and directors with the financial interests of our shareholders. Our Compensation Committee periodically reviews the equity incentive compensation of our executive officers, including our named executive officers, and from time to time may grant equity incentive awards to them.
In August 2023, we completed the acquisition of Bird Rock Bio, Inc. and closed a concurrent private placement financing and a convertible note financing. Following the completion of the transaction, our Compensation Committee, and its advisors undertook a review of the compensation of our executive officers, directors and employees.
Following such review, on August 25, 2023, we granted each of Mr. Dhillon and Ms. Arsenault (i) an option to purchase 9,013 and 13,383 shares of our common stock, respectively, at an exercise price per share of $3.50 and (ii) a contingent option award to, purchase 21,586 and 32,053 shares of our common stock, respectively, at an exercise price per share of $3.50, subject to the approval of an amendment to the 2014 Plan to increase the number of shares authorized for issuance under the 2014 Plan (the “Plan Amendment”). On September 29, 2023 holders of a majority of the voting power of the outstanding capital stock of the Company (the “Majority Stockholders”) and the Board approved the Plan Amendment. These options vest in equal monthly installments over four years, subject to continued services to the Company through the applicable vesting date. If a change in control occurs, 100% of such options will become fully vested.
Additionally, on August 25, 2023, we granted each of Mr. Dhillon and Ms. Arsenault (i) performance-based RSUs covering 81,110 and 53,529 shares of our common stock, respectively, and (ii) contingent performance-based RSUs covering 194,270 and 128,209 shares of our common stock, respectively, subject to approval of the Plan Amendment, which was approved by the Majority Stockholders and the Board on September 29, 2023. These RSUs vest upon achievement of the following performance milestones, subject to continued services to the Company through the applicable vesting date: 25% of the RSUs vest upon the Company achieving a market capitalization of $125 million, $250 million, $400 million and $500 million, respectively. As of December 31, 2023, no market capitalization milestone was achieved and no RSUs were vested.
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Employment and Severance Arrangements 
Employment Agreement with Punit Dhillon
On August 7, 2020, we entered into an employment agreement with Mr. Dhillon, our Chief Executive Officer. The agreement provides for an annual base salary of $400,000 per year and an annual discretionary bonus up to 50% of his base salary based on Mr. Dhillon’s achievement of annual corporate milestones agreed to by the Board. Effective June 1, 2022, Mr. Dhillon's annual base salary was increased to $450,000 per year and his annual discretionary bonus eligibility was increased to 60% of his base salary. Mr. Dhillon also receives the normal benefits available to other similarly situated executives and will be entitled to severance pay under the circumstances described below.
Mr. Dhillon’s employment with the Company is at-will. The employment agreement provides that, except for a termination of Mr. Dhillon’s employment for “Cause,” “By Death”, “By Disability” (as such terms are defined in his employment agreement), Mr. Dhillon is entitled to a severance payment equal to 24 months of his then current base salary, less applicable statutory deductions and withholdings if terminated by the Company.
Employment Agreement with Kaitlyn Arsenault
On October 4, 2021, we entered into an employment agreement with Ms. Arsenault, our Chief Financial Officer. The agreement provides for an annual base salary of $300,000 per year and an annual discretionary bonus of up to 35% of her base salary based in part on Ms. Arsenault’s achievement of milestones agreed to by the Board. Effective June 1, 2022, Ms. Arsenault’s annual base salary was increased to $340,000 per year and her annual discretionary bonus eligibility was increased to 40% of her base salary. Ms. Arsenault also receives the normal benefits available to other similarly situated executives and will be entitled to severance pay under the circumstances described below.
Ms. Arsenault’s employment with the Company is at-will. The employment agreement provides that, except for a termination of Ms. Arsenault’s employment for “Cause,” “By Death” or “By Disability” (as such terms are defined in her employment agreement), (a) in the event that following a “Change of Control” (as defined in the Amended and Restated Plan, if approved by stockholders) Ms. Arsenault’s employment is terminated by the Company, she will be entitled to a severance payment equal to 12 months of her then current base salary less applicable statutory deductions and withholdings, and (b) in the event that prior to a Change of Control, Ms. Arsenault’s employment is terminated by the Company, she would be entitled to a severance payment equal to (i) 6 months of her then current base salary, less applicable statutory deductions and withholdings, if such termination were to occur before April 4, 2023, (ii) 9 months of her then current base salary, less applicable statutory deductions and withholdings, if such termination were to occur on or after April 4, 2023 and before October 4, 2024, and (iii) 12 months of her then current base salary, less applicable statutory deductions and withholdings, if such termination were to occur on or after October 4, 2024.
26
Outstanding Equity Awards at Fiscal Year-end 
As of December 31, 2023, our named executive officers held the following outstanding Company equity awards:
Option AwardsStock Awards
NameGrant
Date		Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable		Number of
Securities
Underlying
Unexercised
Options
(#)
Un-
exercisable		Option
Exercise
Price
($)		Option
Expiration
Date		Number
of
Shares
or
Units of
Stock
That
Have
Not
Vested
(#)		Market
Value
of
Shares
or
Units
of
Stock
That
Have
Not
Vested
($)(1)		Number
of
Unearned
Shares,
Units or Other
Rights
That
Have
Not
Vested
(#)		Market
or
Payout
Value Of
Unearned
Shares,
Units or
Other
Rights
That
Have
Not
Vested
($)
Punit Dhillon,
10/10/2018(2)
800-76.25 10/10/2028
CEO/Chairman
8/7/2020(3)
25,20010,80011.25 8/7/2030
12/14/2021(4)
6,1806,18014.50 12/14/2031
12/14/2021(5)
2,6677,254 
8/25/2023(8)
7528,2613.50 8/25/2033
9/29/2023(8)
1,79819,7883.50 9/29/2033
8/25/2023(9)
81,110220,619 
9/29/2023(9)
194,270528,414 
Kaitlyn Arsenault
9/15/2021(6)
88072030.00 9/15/2031
CFO
10/4/2021(7)
3,5202,88022.50 10/4/2031
12/14/2021(4)
3,5403,54014.50 12/14/2031
12/14/2021(5)
1,3333,626 
8/25/2023(8)
1,11612,2673.50 8/25/2033
9/29/2023(8)
2,67129,3823.50 9/29/2033
8/25/2023(9)
53,529145,599 
9/29/2023(9)
128,209348,728 
(1)The market value of shares that have not vested is calculated based on the per share closing price of our common stock on December 31, 2023.
(2)The options specified above vest as follows: 1/12th each month on the anniversary of the grant date.
(3)The options specified above vest as follows: 10% vests on the grant date and 90% vests in equal semi-annually installments thereafter over four years.
(4)The options specified above vest as follows: 25% vests on the one year anniversary of the grant date and 1/48th vests monthly thereafter over three years following the one year anniversary of the grant date.
(5)The RSUs specified above vest as follows: 33% on each grant date anniversary over three years.
(6)The options specified above vest as follows: 10% vests on the grant date and 90% vests in equal annual installments thereafter over four years.
(7)The options specified above vest as follows: 10% vests on the grant date and 90% vests in equal semi-annually installments thereafter over four years.
(8)The options specified above vest as follows: monthly on the grant date thereafter over four years.
(9)The RSUs vest on the following performance milestones: an incremental 25% of the RSUs vest upon the Company achieving a market capitalization of $125 million, $250 million, $400 million and $500 million, respectively. As of December 31, 2023, no market capitalization milestone was achieved and no RSUs were vested.
Exercises of Options
There were no exercises of stock options by our named executive officers during the year ended December 31, 2023.
27
DIRECTOR COMPENSATION 
As of December 31, 2023, our policy for the compensation of our non-employee directors is as follows:
•Each non-employee director receives a cash retainer of $40,000 on an annual basis, and an executive chair of the Board, if one is appointed as such and is a non-employee director, receives an additional $40,000 retainer annually.
•Upon election to the Board, non-employee directors receive a one-time award of 20,000 stock options which vest in twelve equal monthly installments. In subsequent annual periods, each non-employee director receives a grant of 20,000 stock options which vest in twelve equal monthly installments.
Non-employee directors who serve as members of special committees of the Board receive additional compensation as follows:
•Audit Committee: $10,000 per year ($20,000 for the chair)
•Compensation Committee: $3,500 per year ($10,000 for the chair)
•Nominating and Corporate Governance Committee: $2,500 per year ($5,000 for the chair)
On January 5, 2023, each of Drs. Dalesandro, Tyle, and Ward received 1,000 options, and on February 14, 2023, Dr. Charych received 1,000 options, which options vest monthly over 12 months. These grants were made in consideration of their service as a director of the Company for the year ended December 31, 2022 and were consistent with the non-employee director compensation policy in place at the time of the grant.
On August 25, 2023, each director other than Mr. Grayson received an annual grant of 20,000 stock options, which vest monthly over 12 months. These grants were made in consideration of their service as a director of the Company for the year ended December 31, 2023 and were consistent with the non-employee director compensation policy as of December 31, 2023.
In connection with Mr. Grayson’s appointment to the Board and in recognition of his skills, experience and future contributions to the Company, the Company paid Mr. Grayson a cash bonus of $350,000 on September 18, 2023. In addition, in recognition of his skills, experience and future contributions to the Company, on August 25, 2023, we granted Mr. Grayson performance-based RSUs covering 72,531 shares of our common stock and contingent performance-based RSUs covering 173,721 shares of our common stock, subject to approval of the Plan Amendment, which was approved by the Majority Stockholders and the Board on September 29, 2023. The RSUs vest on the following milestones: 25% of the RSUs vest upon the Company achieving a market capitalization of $125 million, $250 million, $400 million and $500 million respectively. As of December 31, 2023, no market capitalization milestone was achieved and no RSUs were vested.
28
The table below summarizes the compensation paid by us to our non-employee directors for the year ended December 31, 2023. Mr. Dhillon, our employee director, does not receive additional compensation for his services as a member of our Board:
DIRECTOR COMPENSATION
Name
Fees
Earned
or Paid
in Cash
($)
Stock
Awards
($) (1)
Option
Awards
($) (1)
Total
($)
Margaret Dalesandro
54,516 - 61,842 
(2)
116,358 
Praveen Tyle
58,184 - 61,842 
(3)
120,026 
Keith Ward
61,504 - 61,842 
(4)
123,346 
Deborah Charych
35,688 - 66,592 
(5)
102,280 
Andy Schwab
15,988 - 58,092 
(6)
74,080 
Paul Grayson
364,731 
(8)
889,458 - 
(7)
1,254,189 
(1)The amounts reported under "Stock Awards" and “Option Awards” in the above table reflect the grant date fair value of these awards as determined in accordance with the Financial Accounting Standards Board’s Accounting Standards Codification Topic 718, Compensation - Stock Compensation. The value of stock option awards was estimated using the Black-Scholes option pricing model. The valuation assumptions used in the valuation of options granted may be found in Note 8 to our financial statements included in the 2023 Form 10-K. The annual Board member grants for the year ended December 31, 2023, were granted on August 25, 2023. As of December 31, 2023, each non-employee director is entitled to an annual grant of 20,000 common stock options, all of which vest in twelve equal monthly installments.
(2)The aggregate number of shares issuable upon exercise of option awards outstanding on December 31, 2023 for Dr. Dalesandro was 22,601, of which 9,267 were fully vested.
(3)The aggregate number of shares issuable upon exercise of option awards outstanding on December 31, 2023 for Dr. Tyle was 22,101, of which 8,767 were fully vested.
(4)The aggregate number of shares issuable upon exercise of option awards outstanding on December 31, 2023 for Dr. Ward was 22,001, of which 8,667 were fully vested.
(5)The aggregate number of shares issuable upon exercise of option awards outstanding on December 31, 2023 for Dr. Charych was 21,001, of which 7,501 were fully vested.
(6)The aggregate number of shares issuable upon exercise of option awards outstanding on December 31, 2023 for Mr. Schwab was 20,001, of which 6,667 were fully vested.
(7)As of December 31, 2023, Mr. Grayson had 246,252 RUSs with market and performance based vesting conditions. The RSUs vest on the following milestones:  25% of the RSUs vest upon the Company achieving a market capitalization of $125 million, $250 million, $400 million and $500 million, respectively. As of December 31, 2023, no market capitalization milestone was achieved and no RSUs were vested.
(8)Amount includes the prorated annual cash retainer that Mr. Grayson received for his service from August 18, 2023 to December 31, 2023 and a cash bonus of $350,000 in connection with Mr. Grayson’s appointment to the Board and in recognition of his skills, experience and future contributions to the Company.
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PAY VERSUS PERFORMANCE
As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(v) of Regulation S-K (the “Pay Versus Performance Rule”), we are providing the following information about the relationship between executive compensation actually paid for our principal executive officer (“PEO”) and Non-PEO named executive officers (“NEOs”) and certain financial performance of the Company for the fiscal years listed below.

Value of Initial Fixed $100
Investment Based On:
Fiscal
Year
Summary
Compensation
Table Total
for PEO(1)
Compensation
Actually Paid
to PEO(2)
Average Summary
Compensation
Table Total
for non-PEO NEOs(3)
Average
Compensation
Actually Paid
to non-PEO NEOs(4)
Total
Shareholder
Return(5)
Net Income
($)(6)
(a)(b)(c)(d)(e)(f)(h)
2023$1,807,338$1,254,456$1,270,290$874,797$27.2$(37,644,784)
2022$668,481$304,870$469,087$314,576$40.5$(19,481,602)
2021$899,701$1,087,573$363,547$316,184$130$(8,522,182)

(1)The dollar amounts reported in column (b) are the amounts of total compensation reported for Mr. Dhillon (our Chief Executive Officer) for each corresponding year in the “Total” column of the Summary Compensation Table. Refer to “Executive Compensation-Summary Compensation Table.”
(2)The dollar amounts reported in column (c) represent the amount of “compensation actually paid” to Mr. Dhillon, as computed in accordance with Item 402(v) of Regulation S-K. The dollar amounts do not reflect the actual amount of compensation earned by or paid to Mr. Dhillon during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to Mr. Dhillon’s total compensation for each year to determine the compensation actually paid:

Fiscal
Year		Reported Summary Compensation Table Total For PEO
($)		Deduction of Reported Value of Equity Awards (a)
($)		Equity Award Adjustments (b)
($)		Compensation Actually Paid to PEO
($)
20231,807,338(1,087,338)534,4561,254,456
2022668,481—(363,611)304,870
2021899,701(276,680)464,5521,087,573
(a)    The grant date fair value of equity awards represents the total of the amounts reported in the “Stock Awards” and “Option Awards” columns in the Summary Compensation Table for the applicable year.
(b)    The equity award adjustments for each applicable year include the addition (or subtraction, as applicable) of the following: (i) the year-end fair value of any equity awards granted in the applicable year that are outstanding and unvested as of the end of the year; (ii) the amount of change as of the end of the applicable year (from the end of the prior fiscal year) in fair value of any awards granted in prior years that are outstanding and unvested as of the end of the applicable year; (iii) for awards that are granted and vest in same applicable year, the fair value as of the vesting date; and (iv) for awards granted in prior years that vest in the applicable year, the amount equal to the change as of the vesting date (from the end of the prior fiscal year) in fair value. The valuation assumptions used to calculate fair values did not materially differ from those disclosed at the time of grant. The amounts deducted or added in calculating the equity award adjustments are as follows:
Fiscal
Year		Year End Fair Value of Equity Awards Granted During the Fiscal Year
($) (i)		Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards
($) (ii)		Fair Value as of Vesting Date of Equity Awards Granted and Vested in the Year
($) (iii)		Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year
($) (iv)		Total Equity Award Adjustments
($)
2023554,219(35,861)4,81111,287534,456
2022—(283,189)—(80,422)(363,611)
2021248,54156,566—159,445464,552
30
(3)The dollar amounts reported in column (d) (i) for 2022 and 2023, the amounts of total compensation reported for Ms. Arsenault (our Chief Financial Officer) for 2022 and 2023 in the “Total” column of the Summary Compensation Table and (ii) for 2021, the average of the amounts of total compensation reported for Ms. Arsenault (our Chief Financial Officer) and Richard Janney (our Former Interim Principal Accounting Officer) for 2021 in the "Total" column of the Summary Compensation Table in the Company's annual report on Form 10-K for the year ended December 31, 2021.
(4)The dollar amounts reported in column (e) represent the amount of “compensation actually paid” to Ms. Arsenault in 2022 and 2023 and the average amount of "compensation actually paid" to Ms. Arsenault and Mr. Janney in 2021, as computed in accordance with Item 402(v) of Regulation S-K. The dollar amounts do not reflect the actual amount of compensation earned by or paid to Ms. Arsenault or Mr. Janney during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to Ms. Arsenault’s and Mr. Janney's total compensation for the applicable year to determine the compensation actually paid, using the same methodology descried above in Note 2:
Fiscal
Year		Average of Reported Summary Compensation Table Total For Non-PEO NEOs
($)		Deduction of Average of Reported Value of Equity Awards
($)		Equity Award Adjustments (a)
($)		Average Compensation Actually Paid to Non-PEO NEOs
($)
20231,270,290(794,290)398,797874,797
2022469,087—(154,511)314,576
2021363,547(163,620)116,257316,184
(a)    The amounts deducted or added in calculating the total equity award adjustments are as follows:
Fiscal
Year		Year End Fair Value of Equity Awards Granted During the Fiscal Year
($) (i)		Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards
($) (ii)		Fair Value as of Vesting Date of Equity Awards Granted and Vested in the Year
($) (iii)		Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year
($) (iv)		Total Equity Award Adjustments
($)
2023412,110(15,672)7,144(4,785)398,797
2022—(116,501)—(38,010)(154,511)
2021107,762—8,495—116,257

(5)Cumulative total shareholder return (“TSR”) is calculated by dividing the sum of the cumulative amount of dividends for the measurement period, assuming dividend reinvestment, and the difference between the Company’s share price at the end and the beginning of the measurement period by the Company’s share price at the beginning of the measurement period.
(6)The dollar amounts reported represent the amount of net income (loss) reflected in the Company’s audited financial statements for the applicable year.

31

Compensation Actually Paid and Cumulative TSR of the Company
The graph below sets forth the relationship between the amount of Compensation Actually Paid to our PEO, the average amount of Compensation Actually Paid to our Non-PEO NEO, and the Company’s cumulative TSR over the three most recently completed fiscal years.
chart-6bc659332af649b6828.jpg

32
Compensation Actually Paid and Net Income
The graph below sets forth the amount of Compensation Actually Paid to our PEO, the amount of Compensation Actually Paid to our Non-PEO NEO, and our net income during the three most recently completed fiscal years.
chart-9481c9bd40514f548a1.jpg
All information provided above under the “Pay Versus Performance” heading will not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing, except to the extent the Company specifically incorporates such information by reference.
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HOUSEHOLDING OF PROXY MATERIALS
The SEC has adopted rules that permit companies and intermediaries (e.g., brokers) to satisfy the delivery requirements for stockholder meeting materials with respect to two or more stockholders sharing the same address by delivering a single set of stockholder meeting materials addressed to those stockholders. This process, which is commonly referred to as “householding,” potentially means extra convenience for stockholders and cost savings for companies.
With respect to the Special Meeting, a number of brokers with account holders who are stockholders will be “householding” our proxy materials. A single set of proxy materials will be delivered to multiple stockholders sharing an address unless contrary instructions have been received from the affected stockholders. Once you have received notice from your broker that they will be “householding” communications to your address, “householding” will continue until you are notified otherwise or until you revoke your consent. If, at any time, you no longer wish to participate in “householding” and would prefer to receive a separate set of proxy materials, please notify your broker or us. Direct your written request to Skye Bioscience, Inc., Corporate Secretary, 11250 El Camino Real Suite 100, San Diego, CA 92130. Stockholders who currently receive multiple copies of the proxy materials at their addresses and would like to request “householding” of their communications should contact their brokers.
STOCKHOLDER PROPOSALS
Our Bylaws provide notice procedures for stockholders to nominate a person as a director and to propose business to be considered by stockholders at an annual meeting of stockholders. A stockholder’s notice must be delivered in writing to the Secretary of the Company at Skye Bioscience, Inc, 11250 El Camino Real, Suite 100, San Diego, CA 92130 and must set forth as to each matter the stockholder proposes to bring before the annual meeting the information required by our Bylaws. In order to be timely, a stockholder’s notice must be delivered to the Secretary of the Company not later than the close of business on the 90th day nor earlier than the opening of business on the 120th day prior to the first anniversary of the date for the preceding year’s annual meeting of stockholders; provided that in the event that the date of the annual meeting is more than 30 days before or more than 70 days after such anniversary date, notice by the stockholder to be timely must be so delivered not earlier than the close of business on the 120th day prior to the date of such annual meeting and not later than the close of business on the later of the 90th day prior to the date of such annual meeting or the 10th day following the day on which public announcement (as defined in the Bylaws) of the date of such annual meeting is first made by the Company. We did not hold an annual meeting of stockholders in the year ended December 31, 2023 and do not intend to hold an annual meeting of stockholders in the year ending December 31, 2024, and we have not yet made a public announcement of the date of the next annual meeting of stockholders (the “2025 Annual Meeting”). As a result, in order to be timely, a stockholder’s notice must be delivered as set forth above not earlier than the close of business on the 120th day prior to the date of the 2025 Annual Meeting and not later than the close of business on the later of the 90th day prior to the date of the 2025 Annual Meeting or the 10th day following the day on which public announcement of the date of the 2025 Annual Meeting is first made by the Company. We will announce the date of our 2025 Annual Meeting if such meeting is called.
In addition, stockholders who intend to solicit proxies in support of director nominees other than the Company’s nominees must provide notice that sets forth the information required by Rule 14a-19 under the Exchange Act.

Because we did not hold an annual meeting of stockholders in the year ended December 31, 2023 and do not intend to hold an annual meeting of stockholders in the year ending December 31, 2024, stockholder proposals submitted pursuant to Rule 14a-8 under the Exchange Act and intended to be presented at the 2025 Annual Meeting must be delivered as set forth above a reasonable time before the Company begins to print and send its proxy materials for such meeting in order to be considered for inclusion in the Company’s proxy materials for that meeting. We will announce the specific date by which such proposals must be received by us in a quarterly report on Form 10-Q or a current report on Form 8-K.
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ADJOURNMENT OF THE SPECIAL MEETING OF SHAREHOLDERS
Our Bylaws provide that, if a quorum is not represented, a majority of the voting power represented, or the person presiding at, the Special Meeting may adjourn the meeting from time to time until a quorum shall be represented. If it is necessary to adjourn the Special Meeting, notice need not be given of the adjourned meeting if the time and place thereof are announced at the Special Meeting. However, if a new record date is fixed for the adjourned meeting, notice of the adjourned meeting must be given to each stockholder of record as of the new record date. The stockholders present at a duly convened meeting at which a quorum is present may continue to transact business until adjournment, notwithstanding the departure of enough stockholders to leave less than a quorum of the voting power.
WHERE YOU CAN FIND MORE INFORMATION 
We file reports, proxy statements and other information with the SEC as required by the Exchange Act. You can read the Company’s SEC filings, including this Proxy Statement, over the Internet at the SEC’s website at http://www.sec.gov. 
If you would like additional copies of this Proxy Statement or if you have questions about the proposal to be presented at the Special Meeting, you should contact the Company at the following address and telephone number:
Skye Bioscience, Inc.
Attention: Corporate Secretary
11250 El Camino Real, Suite 100
San Diego, CA 92130
Toll Free: (858) 410-0266
Email: ir@skyebioscience.com
You may also obtain these documents by requesting them via e-mail from ir@skyebioscience.com.

By Order of the Board
/s/ Punit Dhillon
Chairman and Chief Executive Officer

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APPENDIX A
SKYE BIOSCIENCE, INC.
AMENDED AND RESTATED OMNIBUS INCENTIVE PLAN
ARTICLE I
PURPOSE AND ADOPTION OF THE PLAN
1.01.Purpose.  The purpose of the Skye Bioscience, Inc. Amended and Restated Omnibus Incentive Plan (as may be further amended from time to time, the “Plan”) is to assist in attracting and retaining highly competent employees, executive officers, directors and Consultants to act as an incentive in motivating selected employees, executive officers, directors and Consultants of the Company and its Subsidiaries to achieve long-term corporate objectives.
1.02.Adoption and Term.  The Plan was initially approved and adopted by the Board to be effective as of October 31, 2014. The Plan, as most recently amended and restated, was approved by the Board on September 10, 2024 (the “Amendment and Restatement Date”), subject to the approval of the stockholders of the Company.  The Plan shall remain in effect until the tenth (10th) anniversary of the Amendment and Restatement Date, or until terminated by action of the Board, whichever occurs sooner.
ARTICLE II
DEFINITIONS
For the purpose of this Plan, capitalized terms shall have the following meanings:
2.01.“Administrator” has the meaning specified in Section 3.
2.02.“Affiliate” means an entity in which, directly or indirectly through one or more intermediaries, the Company has at least a fifty percent (50%) ownership interest or, where permissible under Section 409A of the Code, at least a twenty percent (20%) ownership interest; provided, however, for purposes of any grant of an Incentive Stock Option, “Affiliate” means a corporation which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, directly or indirectly.
2.02.“Award” means any one or a combination of Non-Qualified Stock Options or Incentive Stock Options described in Article VI, Stock Appreciation Rights described in Article VI, Restricted Shares and Restricted Stock Units described in Article VII, Performance Awards described in Article VIII, other stock-based Awards described in Article IX, or any other Award made under the terms of the Plan.
2.03.“Award Agreement” means a written agreement between the Company and a Participant or a written acknowledgment from the Company to a Participant specifically setting forth the terms and conditions of an Award granted under the Plan.
2.04.“Award Period” means, with respect to an Award, the period of time, if any, set forth in the Award Agreement during which specified target performance goals must be achieved or other conditions set forth in the Award Agreement must be satisfied.
2.05.“Beneficiary” means an individual, trust or estate who or which, by a written designation of the Participant filed with the Company, or if no such written designation is filed, by operation of law, succeeds to the rights and obligations of the Participant under the Plan and the Award Agreement upon the Participant's death.
2.06.“Board” means the Board of Directors of the Company.
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2.07.“Cause” means (a) if a Participant is a party to a written employment, severance or consulting agreement with the Company or any of its Subsidiaries or an Award Agreement in which the term “cause” is defined, “Cause” as defined in such agreement, and (b) if no such agreement exists, (i) the Administrator’s determination that the Participant failed to substantially perform the Participant’s duties (other than a failure resulting from the Participant’s Disability); (ii) the Administrator’s determination that the Participant failed to carry out, or comply with any lawful and reasonable directive of the Board or the Participant’s immediate supervisor; (iii) the Participant’s unauthorized use or disclosure of confidential information or trade secrets of the Company or any of its Subsidiaries or any material breach of a written agreement between the Participant and the Company; (iv) the occurrence of any act or omission by the Participant that could reasonably be expected to result in (or has resulted in) the Participant’s conviction, plea of no contest, plea of nolo contendere, or imposition of un-adjudicated probation for any felony or indictable offense or crime involving moral turpitude; (v) the Participant’s unlawful use (including being under the influence) or possession of illegal drugs on the premises of the Company or any of its Subsidiaries or while performing the Participant’s duties and responsibilities for the Company or any of its Subsidiaries; or (vi) the Participant’s commission of an act of fraud, embezzlement, misappropriation, misconduct, or breach of fiduciary duty against the Company or any of its Subsidiaries.
2.08.“Canadian Person” means any person subject to tax under the laws or Canada or any province or territory situated therein in respect of an Award.
2.08.“Change in Control” means, and shall be deemed to have occurred upon the occurrence of, any one of the following events:
(a)The acquisition in one or more transactions, other than from the Company, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), other than the Company, an Affiliate or any employee benefit plan (or related trust) sponsored or maintained by the Company or an Affiliate, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of a number of Company Voting Securities in excess of 50% of the Company Voting Securities unless such acquisition has been approved by the Board;
(b)Any election has occurred of persons to the Board that causes two-thirds of the Board to consist of persons other than (i) persons who were members of the Board on the Amendment and Restatement Date and (ii) persons who were nominated for elections as members of the Board at a time when two-thirds of the Board consisted of persons who were members of the Board on the Amendment and Restatement, provided, however, that any person nominated for election by a Board at least two-thirds of whom constituted persons described in clauses (i) and/or (ii) or by persons who were themselves nominated by such Board shall, for this purpose, be deemed to have been nominated by a Board composed of persons described in clause (i);
(c)The consummation (i.e. closing) of a reorganization, merger or consolidation involving the Company, unless, following such reorganization, merger or consolidation, all or substantially all of the individuals and entities who were the respective beneficial owners of the Outstanding Common Stock and Company Voting Securities immediately prior to such reorganization, merger or consolidation, following such reorganization, merger or consolidation beneficially own, directly or indirectly, more than 75% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors or trustees, as the case may be, of the entity resulting from such reorganization, merger or consolidation in substantially the same proportion as their ownership of the Outstanding Common Stock and Company Voting Securities immediately prior to such reorganization, merger or consolidation, as the case may be;
(d)The consummation (i.e. closing) of a sale or other disposition of all or substantially all the assets of the Company, unless, following such sale or disposition, all or substantially all of the individuals and entities who were the respective beneficial owners of the Outstanding Common Stock and Company Voting Securities immediately prior to such sale or disposition, following such sale or disposition beneficially own, directly or indirectly, more than 75% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors or trustees, as the case may be, of the entity purchasing such assets in substantially the same proportion as their ownership of the Outstanding Common Stock and Company Voting Securities immediately prior to such sale or disposition, as the case may be; or
(e)a complete liquidation or dissolution of the Company.
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2.09.“Code” means the Internal Revenue Code of 1986, as amended. References to a section of the Code shall include that section and any comparable section or sections of any future legislation that amends, supplements or supersedes said section.
2.11.“Common Stock” means the common stock of the Company, par value $0.001 per share.
2.12.“Company” or “Skye” means Skye Bioscience, Inc., a Nevada corporation, and its successors.
2.13.“Company Voting Securities” means the combined voting power of all outstanding voting securities of the Company entitled to vote generally in the election of directors to the Board.
2.14.“Consultant” means an individual consultant or an employee, executive officer or director of a consultant entity who spends a significant amount of time and attention on the affairs and business of the Company or a Subsidiary, other than a Participant that is an employee, who:
(a)is engaged to provide services on a bona fide basis to the Company or a Subsidiary, other than services provided in relation to a distribution of securities of the Company or a Subsidiary;
(b)provides the services under a written contract with the Company or a Subsidiary; and
(c)spends or will spend a significant amount of time and attention on the affairs and business of the Company or a Subsidiary.
2.15.“Date of Grant” means the date designated by the Administrator as the date as of which it grants an Award, which shall not be earlier than the date on which the Administrator approves the granting of such Award.
2.16.“Disability” means (a) if a Participant is a party to a written employment, severance or consulting agreement with the Company or any of its Subsidiaries or an Award Agreement in which the term “disability” is defined, “Disability” as defined in such agreement, and (b) if no such agreement exists, a permanent and total disability under Section 22(e)(3) of the Code, as amended.
2.16.“Dividend Equivalent Account” means a bookkeeping account in accordance with Section 11.17 and related to an Award that is credited with the amount of any cash dividends or stock distributions that would be payable with respect to the shares of Common Stock subject to such Awards had such shares been outstanding shares of Common Stock.
2.17.“Exchange Act” means the Securities Exchange Act of 1934, as amended.
2.18.“Exercise Price” means, with respect to a Stock Appreciation Right, the amount established by the Administrator in the Award Agreement which is to be subtracted from the Fair Market Value on the date of exercise in order to determine the amount of the payment to be made to the Participant, as further described in Section 6.02(b).
2.19.“Fair Market Value” means, as of any applicable date: 
(a)for Canadian persons, if the Common Stock is listed on the Canadian Securities Exchange, the closing sales price of the Common Stock on the exchange on that date, or, if no sale of the Common Stock occurred on that date, on the next preceding date on which there was a reported sale;
(b)for US persons, if the Common Stock is listed on a national securities exchange or is authorized for quotation on the Nasdaq National Market System (“NMS”), the closing sales price of the Common Stock on the exchange or NMS, as the case may be, on that date, or, if no sale of the Common Stock occurred on that date, on the next preceding date on which there was a reported sale;
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(c)if none of the above apply for the particular person, the closing bid price as reported by the Nasdaq Capital Market on that date, or if no price was reported for that date, on the next preceding date for which a price was reported;
(d)if none of the above apply for the particular person, the last reported bid price published in the “pink sheets” or displayed on the Financial Industry Regulatory Authority (“FINRA”), Electronic Bulletin Board, or OTC Markets, Inc. as the case may be; or
(e)if none of the above apply, the fair market value of the Common Stock as determined under procedures established by the Administrator.
2.20.“Incentive Stock Option” means a stock option within the meaning of Section 422 of the Code.
2.22.“Non-Qualified Stock Option” means a stock option which is not an Incentive Stock Option.
2.24.“Options” means all Non-Qualified Stock Options and Incentive Stock Options granted at any time under the Plan.
2.25.“Outstanding Common Stock” means, at any time, the issued and outstanding shares of Common Stock.
2.26.“Participant” means an employee, director or Consultant of the Company or any Subsidiary, or a Permitted Assign thereof, who receives an Award under the Plan in accordance with Section 5.01, who enters into an Award Agreement with respect to such Award that is fully executed and delivered by all parties thereto, and, with respect to Canadian Persons, whose participation in the distribution is voluntary. Participation in a distribution is considered “voluntary” if:
(a)in the case of an employee or the employee’s Permitted Assign, the employee or the employee’s Permitted Assign is not induced to participate in the distribution by expectation of employment or continued employment of the employee with the Company;
(b)in the case of a Consultant or the Consultant’s Permitted Assign, the Consultant or the Consultant’s Permitted Assign is not induced to participate in the distribution by expectation of engagement of the Consultant to provide services or continued engagement of the Consultant to provide services to the Company; and
(c)in the case of an employee of a Consultant, the individual is not induced by the Company or the Consultant to participate in the distribution by expectation of employment or continued employment with the Consultant.
2.27.“Performance Awards” means Awards granted in accordance with Article VIII.
2.28. “Performance Goals” mean the criteria (and adjustments) that the Administrator may select for an Award to establish performance goals for a performance period, which may include, without limitation, the following: net earnings or losses (either before or after one or more of interest, taxes, depreciation, amortization, and non-cash equity-based compensation expense); gross or net sales or revenue or sales or revenue growth; net income (either before or after taxes) or adjusted net income; profits (including but not limited to gross profits, net profits, profit growth, net operation profit or economic profit), profit return ratios or operating margin; budget or operating earnings (either before or after taxes or before or after allocation of corporate overhead and bonus); cash flow (including operating cash flow and free cash flow or cash flow return on capital); return on assets; return on capital or invested capital; cost of capital; return on stockholders’ equity; total stockholder return; return on sales; costs, reductions in costs and cost control measures; expenses; working capital; earnings or loss per share; adjusted earnings or loss per share; price per share or dividends per share (or appreciation in or maintenance of such price or dividends); regulatory achievements or compliance; implementation, completion or attainment of objectives relating to research, development, regulatory, commercial, or strategic milestones or developments; market share; market capitalization; economic value or economic value added models; division, group or corporate financial goals; customer satisfaction/growth; customer service; employee satisfaction; recruitment and maintenance of personnel; human capital management (including diversity and inclusion); supervision of litigation and other legal matters; strategic partnerships and transactions; financial ratios (including those measuring liquidity, activity, profitability or leverage); debt levels or reductions; sales-related goals; financing and other capital raising transactions;
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cash on hand; acquisition activity; investment sourcing activity; and marketing initiatives, any of which may be measured in absolute terms or as compared to any incremental increase or decrease. Such performance goals also may be based solely by reference to the Company’s performance or the performance of a Subsidiary, division, business segment or business unit of the Company or a Subsidiary, or based upon performance relative to performance of other companies or upon comparisons of any of the indicators of performance relative to performance of other companies.    
2.29.“Permitted Assign” means, for a person that is an employee, executive officer, director or Consultant of the Company or of a Subsidiary: (a) a trustee, custodian, or administrator acting on behalf of, or for the benefit of the person; (b) a holding entity of the person; (c) a “registered retirement savings plan”, “registered retirement income fund”, or “tax-free savings account” (all within the meaning of the Income Tax Act (Canada)) of the person; (d) a spouse of the person; (e) a trustee, custodian, or administrator acting on behalf of, or for the benefit of the spouse of the person; (f) a holding entity of the spouse of the person; or (g) a “registered retirement savings plan”, “registered retirement income fund”, or “tax-free savings account” (all within the meaning of the Income Tax Act (Canada)) of the spouse of the person.
2.30.“Plan” has the meaning given to such term in Section 1.01.
2.31.“Purchase Price” with respect to Options, shall have the meaning set forth in Section 6.01(b).
2.32.“Related Person” means, for the Company: (a) a director or executive officer of the Company or an Affiliate of the Company; (b) an associate of a director or executive officer of the Company or an Affiliate of the Company; or (c) a Permitted Assign of a director or executive officer of the Company or an Affiliate of the Company.
2.33.“Restricted Shares” means Common Stock subject to restrictions imposed in connection with Awards granted under Article VII.
2.34.“Restricted Stock Unit” means a unit representing the right to receive Common Stock or the value thereof in the future subject to restrictions imposed in connection with Awards granted under Article VII.
2.35.“Rule 16b-3” means Rule 16b-3 promulgated by the Securities and Exchange Commission under Section 16 of the Exchange Act, as the same may be amended from time to time, and any successor rule.
2.36.“Stock Appreciation Rights” means awards granted in accordance with Article VI.
2.37.“Subsidiary” means any corporation in which the Company owns, directly or indirectly, at least 50% of the total combined voting power of all classes of stock, or any other entity (including partnerships and joint ventures) in which the Company owns, directly or indirectly, at least 50% of the combined equity thereof; provided, however, that for purposes of determining whether any individual may be a Participant for purposes of any grant of an Incentive Stock Option, “Subsidiary” shall have the meaning ascribed to such term in Section 424(f) of the Code.
2.38.“Termination of Service” means the voluntary or involuntary termination of a Participant’s service as an employee, director or consultant with the Company or an Affiliate for any reason, including death, Disability, retirement or as the result of the divestiture of the Participant’s employer or any similar transaction in which the Participant’s employer ceases to be the Company or one of its Subsidiaries.  Whether entering military or other government service shall constitute Termination of Service, or whether and when a Termination of Service shall occur as a result of Disability, shall be determined in each case by the Administrator in its sole discretion.
ARTICLE III
ADMINISTRATION
3.01.Administrator.
(a) Duties and Authority.  The Plan shall be administered by the Board, or at the discretion of the Board, by a committee of the Board consisting of not less than two (2) directors (the Board or such committee of the
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Board, the “Administrator”); provided, however, that if any member of the Administrator is not a “Non-Employee Director” within the meaning of Rule 16b-3, then any Awards granted to individuals subject to the reporting requirements of Section 16 of the Exchange Act shall be approved by the Board.  The Administrator shall have exclusive and final authority in each determination, interpretation or other action affecting the Plan and its Participants.
The Administrator shall have the sole discretionary authority to interpret the Plan, to establish and modify administrative rules for the Plan, to impose such conditions and restrictions on Awards as it determines appropriate, and to make all factual determinations with respect to and take such steps in connection with the Plan and Awards granted hereunder as it may deem necessary or advisable.  The Administrator may delegate such of its powers and authority under the Plan as it deems appropriate to a subcommittee of the Administrator or designated officers or employees of the Company.  In the event of such delegation of authority or exercise of authority by the Board, references in the Plan to the Administrator shall be deemed to refer, as appropriate, to the delegate of the Administrator or the Board.  Actions taken by the Administrator or any subcommittee thereof, and any delegation by the Administrator to designated officers or employees, under this Section 3.01 shall comply with Section 16(b) of the Exchange Act, and the regulations promulgated under such statutory provisions, or the respective successors to such statutory provisions or regulations, as in effect from time to time, to the extent applicable.
(b)Indemnification.  Each person who is or shall have been a member of the Board or the Administrator, or an officer or employee of the Company to whom authority was delegated in accordance with the Plan shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such individual in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company's approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf; provided, however, that the foregoing indemnification shall not apply to any loss, cost, liability, or expense that is a result of his or her own willful misconduct.  The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company's Articles of Incorporation or Bylaws, conferred in a separate agreement with the Company, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.
ARTICLE IV
SHARES
4.01.Share Reserve.
(a)General. The total number of shares authorized to be issued under the Plan, since its inception, shall equal 4,000,000. The foregoing share limit shall be subject to adjustment in accordance with Section 11.07. The shares to be offered under the Plan shall be authorized and unissued Common Stock, or issued Common Stock that shall have been reacquired by the Company.
(b)Automatic Increases. The aggregate number of shares of Common Stock reserved for awards under Section 4.01(a) will automatically increase on January 1 of each year, for a period of no more than ten years, commencing on January 1, 2023 and ending on (and including) January 1, 2032 in an amount equal to 5% of the total number of shares of Common Stock outstanding on December 31 of the preceding calendar year. Notwithstanding the foregoing, the Board may act prior to January 1 of a given year to provide that there will be no January 1 increase for such year or that the increase for the year will be a lesser number of shares of Common Stock than provided herein.
(c)Incentive Stock Option Limitation. Subject to the adjustment in Section 11.07, the aggregate maximum number of shares of Common Stock that may be issued pursuant to the exercise of Incentive Stock Options is 4,000,000 provided that such number will automatically increase on January 1 of each year, for a period of no more than ten years, commencing on January 1, 2023 and ending on (and including) January 1, 2032 in an amount equal to 5% of the total number of shares of Common Stock outstanding on the Amendment and Restatement Date. Notwithstanding the
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foregoing, the Board may act prior to January 1 of a given year to provide that there will be no January 1 increase for such year or that the increase for the year will be a lesser number of shares of Common Stock than provided herein.
4.02.Limits on Awards. Unless securityholder approval is obtained in accordance with applicable securities laws, the following limitations shall apply to the Plan and all Awards:
(a)the number of securities, calculated on a fully diluted basis, reserved for issuance under the Awards granted to: (i) Related Persons, shall not exceed 10% of the outstanding securities of the Company, or (ii) a Related Person, shall not exceed 5% of the outstanding securities of the Company; and
(b)the number of securities, calculated on a fully diluted basis, issued within 12 months, to: (i) Related Persons, shall not exceed 10% of the outstanding securities of the Company, or (ii) a Related Person, shall not exceed 5% of the outstanding securities of the Company.
4.03.Shares Subject to Terminated Awards.  Common Stock covered by any unexercised portions of Options or Stock Appreciation Rights or terminated or forfeited Awards, and Common Stock subject to any Awards that are otherwise surrendered by the Participant may again be subject to new Awards under the Plan.  Shares of Common Stock surrendered to or withheld by the Company in payment or satisfaction of the Purchase Price of an Option or tax withholding obligation with respect to an Award shall be available for the grant of new Awards under the Plan.  In the event of the exercise of Stock Appreciation Rights, whether or not granted in tandem with Options, only the number of shares of Common Stock actually issued in payment of such Stock Appreciation Rights shall be charged against the number of shares of Common Stock available for the grant of Awards hereunder.
4.04.Non-Employee Director Compensation. Notwithstanding any provision to the contrary in the Plan, the Administrator may establish compensation for non-employee Directors from time to time, subject to the limitations in the Plan. The Administrator will from time to time determine the terms, conditions and amounts of all such non-employee Director compensation in its discretion and pursuant to the exercise of its business judgment, taking into account such factors, circumstances and considerations as it shall deem relevant from time to time, provided that the sum of any cash compensation, or other compensation, and the value (determined as of the grant date in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, or any successor thereto) of Awards granted to a non-employee Director as compensation for services as a non-employee Director during any calendar year of the Company may not exceed $1,000,000 (increased to $1,500,000 in the calendar year of a non-employee Director’s initial service as a non-employee director or any calendar year during which a non-employee Director serves as chairman of the Board or lead independent Director, which limits shall not apply to the compensation for any non-employee Director of the Company who serves in any capacity in addition to that of a non-employee Director for which he or she receives additional compensation or any compensation paid to any non-employee Director prior to the calendar year following the calendar year in which the Amendment and Restatement Date occurs). The Administrator may make exceptions to this limit for individual non-employee Directors, as the Administrator may determine in its discretion.
ARTICLE V
PARTICIPATION
5.01.Eligible Participants.  Participants in the Plan shall be such employees, directors and Consultants of the Company and its Subsidiaries as the Administrator, in its sole discretion, may designate from time to time. The Administrator’s designation of a Participant in any year shall not require the Administrator to designate such person to receive Awards or grants in any other year. The designation of a Participant to receive Awards or grants under one portion of the Plan does not require the Administrator to include such Participant under other portions of the Plan. The Administrator shall consider such factors as it deems pertinent in selecting Participants and in determining the type and amount of their respective Awards.
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ARTICLE VI
STOCK OPTIONS AND STOCK APPRECIATION RIGHTS
6.01.Option Awards.
(a)Grant of Options.  The Administrator may grant, to such Participants as the Administrator may select, Options entitling the Participant to purchase shares of Common Stock from the Company in such number, at such price, and on such terms and subject to such conditions, not inconsistent with the terms of this Plan, as may be established by the Administrator.  The terms of any Option granted under this Plan shall be set forth in an Award Agreement.
(b)Purchase Price of Options.  The Purchase Price of each share of Common Stock which may be purchased upon exercise of any Option granted under the Plan shall be determined by the Administrator; provided, however, that in no event shall the Purchase Price be less than the Fair Market Value on the Date of Grant; provider further that, with respect to Canadian persons, in no event shall the Purchase Price be less than the greater of the Fair Market Value on (a) the trading day prior to the Date of Grant and (b) the Date of Grant.
(c)Designation of Options.  The Administrator shall designate, at the time of the grant of each Option, the Option as an Incentive Stock Option or a Non-Qualified Stock Option; provided, however, that an Option may be designated as an Incentive Stock Option only if the applicable Participant is an employee of the Company or a Subsidiary on the Date of Grant.
(d)Option Term.  The term of each Option shall be fixed by the Administrator, but, subject to the special restrictions applicable to Incentive Stock Options specified in Section 6.01(e), no Option shall be exercisable more than ten (10) years after the Date of Grant.
(e)Special Incentive Stock Option Rules.  No Participant may be granted Incentive Stock Options under the Plan (or any other plans of the Company) that would result in Incentive Stock Options to purchase shares of Common Stock with an aggregate Fair Market Value (measured on the Date of Grant) of more than $100,000 first becoming exercisable by the Participant in any one calendar year.  Notwithstanding any other provision of the Plan to the contrary, the Purchase Price of each Incentive Stock Option shall be equal to or greater than the Fair Market Value of the Common Stock subject to the Incentive Stock Option as of the Date of Grant of the Incentive Stock Option; provided, however, that no Incentive Stock Option shall be granted to any person who, at the time the Option is granted, owns stock (including stock owned by application of the constructive ownership rules in Section 424(d) of the Code) possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company, unless at the time the Incentive Stock Option is granted the price of the Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock subject to the Incentive Stock Option and the Incentive Stock Option by its terms is not exercisable for more than five years from the Date of Grant.
(f)Rights As a Stockholder.  A Participant or a transferee of an Option pursuant to Section 11.04 shall have no rights as a stockholder with respect to Common Stock covered by an Option until the Participant or transferee shall have become the holder of record of any such shares, and no adjustment shall be made for dividends in cash or other property or distributions or other rights with respect to any such Common Stock for which the record date is prior to the date on which the Participant or a transferee of the Option shall have become the holder of record of any such shares covered by the Option; provided, however, that Participants are entitled to share adjustments to reflect capital changes under Section 11.07.
(g)Exercise Due to Death or Disability.  If an optionee's employment with the Company terminates by reason of death or Disability, the Option may thereafter be immediately exercised, to the extent then exercisable (or on such accelerated basis as the Administrator shall determine at or after the grant), by the legal representative of the optionee, by the legal representative of the estate of the optionee, or by the legatee of the optionee under the will of the optionee, within such period of time as is specified in the Award Agreement from the date of such death or Disability.
(h)Period of Exercise After Termination of Employment.  Except as otherwise provided in this paragraph or otherwise determined by the Administrator, if an optionee's employment with the Company terminates for any
43
reason other than death or Disability (except for termination for Cause), the optionee must exercise his or her Options, to the extent then exercisable (or on such accelerated basis as the Administrator shall determine at or after grant), within such period of time as is specified in the Award Agreement from the date of such termination.  If the optionee does not exercise his or her Options within such specified period, the Options automatically terminate, and such Options become null and void.
(i) Acceleration or Extension of Exercise Time.  The Administrator, in its sole discretion, shall have the right (but shall not be obligated), exercisable on or at any time after the Date of Grant, to permit the exercise of an Option or Stock Appreciation Right (i) prior to the time such Option or Stock Appreciation Right would become exercisable under the terms of the Award Agreement, (ii) after the termination of the Option or Stock Appreciation Right under the terms of the Award Agreement, or (iii) after the expiration of the Option or Stock Appreciation Right.
6.02.Stock Appreciation Rights.
(a)Stock Appreciation Right Awards.  The Administrator is authorized to grant to any Participant one or more Stock Appreciation Rights.  Such Stock Appreciation Rights may be granted either independent of or in tandem with Options granted to the same Participant. Stock Appreciation Rights granted in tandem with Options may be granted simultaneously with, or, in the case of Non-Qualified Stock Options, subsequent to, the grant to such Participant of the related Option; provided however, that: (i) any Option covering any share of Common Stock shall expire and not be exercisable upon the exercise of any Stock Appreciation Right with respect to the same share, (ii) any Stock Appreciation Right covering any share of Common Stock shall expire and not be exercisable upon the exercise of any related Option with respect to the same share, and (iii) an Option and Stock Appreciation Right covering the same share of Common Stock may not be exercised simultaneously.  Upon exercise of a Stock Appreciation Right with respect to a share of Common Stock, the Participant shall be entitled to receive an amount equal to the excess, if any, of (A) the Fair Market Value of a share of Common Stock on the date of exercise over (B) the Exercise Price of such Stock Appreciation Right established in the Award Agreement, which amount shall be payable as provided in Section 6.02(c).
(b)Exercise Price. The Exercise Price established under any Stock Appreciation Right granted under this Plan shall be determined by the Administrator, but in the case of Stock Appreciation Rights granted in tandem with Options shall not be less than the Purchase Price of the related Option; provided, however, that in no event shall the Exercise Price be less than the Fair Market Value on the Date of Grant.  Upon exercise of Stock Appreciation Rights granted in tandem with options, the number of shares subject to exercise under any related Option shall automatically be reduced by the number of shares of Common Stock represented by the Option or portion thereof which are surrendered as a result of the exercise of such Stock Appreciation Rights.
(c)Payment of Incremental Value.  Any payment which may become due from the Company by reason of a Participant's exercise of a Stock Appreciation Right may be paid to the Participant as determined by the Administrator (i) all in cash, (ii) all in Common Stock, or (iii) in any combination of cash and Common Stock.  In the event that all or a portion of the payment is made in Common Stock, the number of shares of Common Stock delivered in satisfaction of such payment shall be determined by dividing the amount of such payment or portion thereof by the Fair Market Value on the Exercise Date.  No fractional share of Common Stock shall be issued to make any payment in respect of Stock Appreciation Rights; if any fractional share would be issuable, the combination of cash and Common Stock payable to the Participant shall be adjusted as directed by the Administrator to avoid the issuance of any fractional share.
6.03.Terms of Stock Options and Stock Appreciation Rights.
(a)Conditions on Exercise.  An Award Agreement with respect to Options or Stock Appreciation Rights may contain such waiting periods, exercise dates and restrictions on exercise (including, but not limited to, periodic installments) as may be determined by the Administrator.  In the event the Administrator grants an Option or Stock Appreciation Right that would be subject to Section 409A of the Code, the Administrator may include such additional terms, conditions and restrictions on the exercise of such Option or Stock Appreciation Right as the Administrator deems necessary or advisable in order to comply with the requirements of Section 409A of the Code.
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(b)Duration of Options and Stock Appreciation Rights.  Options and Stock Appreciation Rights shall terminate upon the first to occur of the following events:
(i)Expiration of the Option or Stock Appreciation Right as provided in the Award Agreement; or
(ii)Termination of the Award in the event of a Participant's Disability, retirement, death or other Termination of Service as provided in the Award Agreement; or
(iii)In the case of an Option, ten years from the Date of Grant (five years in certain cases, as described in Section 6.01(e)); or
(iv)Solely in the case of a Stock Appreciation Right granted in tandem with an Option, upon the expiration of the related Option.
6.04.Exercise Procedures.  Each Option and Stock Appreciation Right granted under the Plan shall be exercised under such procedures and by such methods as the Board may establish or approve from time to time.  The Purchase Price of shares purchased upon exercise of an Option granted under the Plan shall be paid in full in cash by the Participant pursuant to the Award Agreement; provided, however, that the Administrator may (but shall not be required to) permit payment to be made (a) except in the case of a Participant that is a Canadian Person, by delivery to the Company of shares of Common Stock held by the Participant, (b) by a “net exercise” method under which Options are exchanged for a number of shares of Common Stock equal to the number of shares that would otherwise be issued upon the Options’ exercise minus a number of shares having a Fair Market Value equal to the Options’ aggregate Purchase Price (rounded up to the nearest whole number of shares), or (c) such other consideration as the Administrator deems appropriate and in compliance with applicable law (including payment under an arrangement constituting a brokerage transaction as permitted under the provisions of Regulation T applicable to cashless exercises promulgated by the Federal Reserve Board, unless prohibited by Section 402 of the Sarbanes-Oxley Act of 2002).  In the event that any Common Stock shall be transferred to the Company to satisfy all or any part of the Purchase Price, the part of the Purchase Price deemed to have been satisfied by such transfer of Common Stock shall be equal to the product derived by multiplying the Fair Market Value as of the date of exercise times the number of shares of Common Stock transferred to the Company.  The Participant may not transfer to the Company in satisfaction of the Purchase Price any fractional share of Common Stock. 
ARTICLE VII
RESTRICTED SHARES AND RESTRICTED STOCK UNITS
7.01.Award of Restricted Stock and Restricted Stock Units.  The Administrator may grant to any Participant an Award of Restricted Shares consisting of a specified number of shares of Common Stock issued to the Participant subject to such terms, conditions and forfeiture and transfer restrictions, whether based on performance standards, periods of service, retention by the Participant of ownership of specified shares of Common Stock or other criteria, as the Administrator shall establish.  The Administrator may also grant Restricted Stock Units representing the right to receive shares of Common Stock in the future subject to such terms, conditions and restrictions, whether based on performance standards, periods of service, retention by the Participant of ownership of specified shares of Common Stock or other criteria, as the Administrator shall establish.  The terms of any Restricted Share and Restricted Stock Unit Awards granted under this Plan shall be set forth in an Award Agreement which shall contain provisions determined by the Administrator and not inconsistent with this Plan.
7.02.Restricted Shares.
(a)Issuance of Restricted Shares.  As soon as practicable after the Date of Grant of a Restricted Share Award by the Administrator, the Company shall cause to be transferred on the books of the Company, or its agent, Common Stock, registered on behalf of the Participant, evidencing the Restricted Shares covered by the Award, but subject to forfeiture to the Company as of the Date of Grant if an Award Agreement with respect to the Restricted Shares covered by the Award is not duly executed by the Participant and timely returned to the Company.  All Common Stock covered by Awards under this Article VII shall be subject to the restrictions, terms and conditions contained in the Plan and the Award
45
Agreement entered into by the Participant.  Until the lapse or release of all restrictions applicable to an Award of Restricted Shares, the share certificates representing such Restricted Shares may be held in custody by the Company, its designee, or, if the certificates bear a restrictive legend, by the Participant.  Upon the lapse or release of all restrictions with respect to an Award as described in Section 7.02(d), one or more share certificates, registered in the name of the Participant, for an appropriate number of shares as provided in Section 7.02(d), free of any restrictions set forth in the Plan and the Award Agreement shall be delivered to the Participant.
(b)Stockholder Rights.  Beginning on the Date of Grant of the Restricted Share Award and subject to execution of the Award Agreement as provided in Section 7.02(a), the Participant shall become a stockholder of the Company with respect to all shares subject to the Award Agreement and shall have all of the rights of a stockholder, including, but not limited to, the right to vote such shares and the right to receive dividends; provided, however, that any Common Stock distributed as a dividend or otherwise with respect to any Restricted Shares as to which the restrictions have not yet lapsed, shall be subject to the same restrictions as such Restricted Shares and held or restricted as provided in Section 7.02(a).
(c)Restriction on Transferability.  None of the Restricted Shares may be assigned or transferred (other than by will or the laws of descent and distribution, or to a revocable inter vivos trust with respect to which the Participant is treated as the owner under Sections 671 through 677 of the Code, except to the extent that Section 16 of the Exchange Act limits a Participant's right to make such transfers), pledged or sold prior to lapse of the restrictions applicable thereto.
(d)Delivery of Shares Upon Vesting.  Upon expiration or earlier termination of the forfeiture period without a forfeiture and the satisfaction of or release from any other conditions prescribed by the Administrator, or at such earlier time as provided under the provisions of Section 7.04, the restrictions applicable to the Restricted Shares shall lapse. 
(e)Forfeiture of Restricted Shares.  Subject to Sections 7.02(f) and 7.04, all Restricted Shares shall be forfeited and returned to the Company and all rights of the Participant with respect to such Restricted Shares shall terminate unless the Participant continues in the service of the Company or an Affiliate as an employee until the expiration of the forfeiture period for such Restricted Shares and satisfies any and all other conditions set forth in the Award Agreement.  The Administrator shall determine the forfeiture period (which may, but need not, lapse in installments) and any other terms and conditions applicable with respect to any Restricted Share Award.
(f)Waiver of Forfeiture Period.  Notwithstanding anything contained in this Article VII to the contrary, the Administrator may, in its sole discretion, waive the forfeiture period and any other conditions set forth in any Award Agreement under appropriate circumstances (including the death, Disability or Retirement of the Participant or a material change in circumstances arising after the date of an Award) and subject to such terms and conditions (including forfeiture of a proportionate number of the Restricted Shares) as the Administrator shall deem appropriate.
7.03.Restricted Stock Units. 
(a)Settlement of Restricted Stock Units.  Payments shall be made to Participants with respect to their Restricted Stock Units as soon as practicable after the Administrator has determined that the terms and conditions applicable to such Award have been satisfied or at a later date if distribution has been deferred.  Payments to Participants with respect to Restricted Stock Units shall be made in the form of Common Stock, or cash or a combination of both, as the Administrator may determine.  The amount of any cash to be paid in lieu of Common Stock shall be determined on the basis of the Fair Market Value of the Common Stock on the date any such payment is processed.  As to shares of Common Stock which constitute all or any part of such payment, the Administrator may impose such restrictions concerning their transferability and/or their forfeiture as may be provided in the applicable Award Agreement or as the Administrator may otherwise determine, provided such determination is made on or before the date certificates for such shares are first delivered to the applicable Participant. Notwithstanding any provision herein to the contrary, no payment shall be made to any Participant that is a Canadian Person in respect of a Restricted Stock Unit later than the end of the third year following the year in respect of which such Restricted Stock Unit was issued.
(b)Shareholder Rights.  Until the lapse or release of all restrictions applicable to an Award of Restricted Stock Units, no shares of Common Stock shall be issued in respect of such Awards and no Participant shall have
46
any rights as a shareholder of the Company with respect to the shares of Common Stock covered by such Award of Restricted Stock Units.
(c)Waiver of Forfeiture Period.  Notwithstanding anything contained in this Section 7.03 to the contrary, the Administrator may, in its sole discretion, waive the forfeiture period and any other conditions set forth in any Award Agreement under appropriate circumstances (including the death, Disability or retirement of the Participant or a material change in circumstances arising after the date of an Award) and subject to such terms and conditions (including forfeiture of a proportionate number of shares issuable upon settlement of the Restricted Stock Units constituting an Award) as the Administrator shall deem appropriate.
(d)Deferral of Payment.  If approved by the Administrator and set forth in the applicable Award Agreement, a Participant may elect to defer the amount payable with respect to the Participant's Restricted Stock Units in accordance with such terms as may be established by the Administrator, subject to the requirements of Section 409A of the Code.
ARTICLE VIII
PERFORMANCE AWARDS
8.01.Performance Awards.
(a)Award Periods and Calculations of Potential Incentive Amounts.  The Administrator may grant Performance Awards to Participants.  A Performance Award shall consist of the right to receive a payment (measured by the Fair Market Value of a specified number of shares of Common Stock, increases in such Fair Market Value during the Award Period and/or a fixed cash amount) contingent upon the extent to which certain performance targets have been met during an Award Period.  The Award Period shall be determined by the Administrator. 
(b)Performance Targets.  Subject to Section 11.18, the performance targets applicable to a Performance Award may include such goals related to the performance of the Company or, where relevant, any one or more of its Subsidiaries or divisions and/or the performance of a Participant as may be established by the Administrator in its discretion.  The performance targets established by the Administrator may vary for different Award Periods and need not be the same for each Participant receiving a Performance Award in an Award Period.
(c)Earning Performance Awards.  The Administrator, at or as soon as practicable after the Date of Grant, shall prescribe a formula to determine the percentage of the Performance Award to be earned based upon the degree of attainment of the applicable performance targets.
(d)Payment of Earned Performance Awards.  Subject to the requirements of Section 11.05, payments of earned Performance Awards shall be made in cash or Common Stock, or a combination of cash and Common Stock, in the discretion of the Administrator.  The Administrator, in its sole discretion, may define, and set forth in the applicable Award Agreement, such terms and conditions with respect to the payment of earned Performance Awards as it may deem desirable.
8.02.Termination of Service.  In the event of a Participant's Termination of Service during an Award Period, the Participant's Performance Awards shall be forfeited except as may otherwise be provided in the applicable Award Agreement.
ARTICLE IX
OTHER STOCK-BASED AWARDS
9.01.Grant of Other Stock-Based Awards.  Other stock-based awards, consisting of stock purchase rights (with or without loans to Participants by the Company containing such terms as the Administrator shall determine), Awards of Common Stock, or Awards valued in whole or in part by reference to, or otherwise based on, Common Stock, may be
47
granted either alone or in addition to or in conjunction with other Awards under the Plan. Subject to the provisions of the Plan, the Administrator shall have sole and complete authority to determine the persons to whom and the time or times at which such Awards shall be made, the number of shares of Common Stock to be granted pursuant to such Awards, and all other conditions of the Awards.  Any such Award shall be confirmed by an Award Agreement executed by the Administrator and the Participant, which Award Agreement shall contain such provisions as the Administrator determines to be necessary or appropriate to carry out the intent of this Plan with respect to such Award.
9.02.Terms of Other Stock-Based Awards.  In addition to the terms and conditions specified in the Award Agreement, Awards made pursuant to this Article IX shall be subject to the following:
(a)Any Common Stock subject to Awards made under this Article IX may not be sold, assigned, transferred, pledged or otherwise encumbered prior to the date on which the shares are issued, or, if later, the date on which any applicable restriction, performance or deferral period lapses; and
(b)If specified by the Administrator in the Award Agreement, the recipient of an Award under this Article IX shall be entitled to receive, currently or on a deferred basis, interest or dividends or dividend equivalents with respect to the Common Stock or other securities covered by the Award; and
(c)The Award Agreement with respect to any Award shall contain provisions dealing with the disposition of such Award in the event of a Termination of Service prior to the exercise, payment or other settlement of such Award, whether such termination occurs because of Retirement, Disability, death or other reason, with such provisions to take account of the specific nature and purpose of the Award.
ARTICLE X
[RESERVED]
ARTICLE XI
TERMS APPLICABLE GENERALLY TO AWARDS
GRANTED UNDER THE PLAN
11.01.Plan Provisions Control Award Terms.  Except as provided in Section 11.16, the terms of the Plan shall govern all Awards granted under the Plan, and in no event shall the Administrator have the power to grant any Award under the Plan which is contrary to any of the provisions of the Plan.  In the event any provision of any Award granted under the Plan shall conflict with any term in the Plan as constituted on the Date of Grant of such Award, the term in the Plan shall control.  Except as provided in Section 11.03 and Section 11.07, the terms of any Award granted under the Plan may not be changed after the Date of Grant of such Award so as to materially decrease the value of the Award without the express written approval of the holder.
11.02.Award Agreement.  No person shall have any rights under any Award granted under the Plan unless and until the Company and the Participant to whom such Award shall have been granted shall have executed and delivered an Award Agreement or received any other Award acknowledgment authorized by the Administrator expressly granting the Award to such person and containing provisions setting forth the terms of the Award.
11.03.Modification of Award After Grant.  No Award granted under the Plan to a Participant may be modified (unless such modification does not materially decrease the value of the Award) after the Date of Grant except by express written agreement between the Company and the Participant, provided that any such change (a) shall not be inconsistent with the terms of the Plan, and (b) shall be approved by the Administrator.
11.04.Limitation on Transfer.  Except as provided in Section 7.02(c) in the case of Restricted Shares, a Participant's rights and interest under the Plan may not be assigned or transferred other than by will or the laws of descent and distribution, and during the lifetime of a Participant, only the Participant personally (or the Participant's personal
48
representative) may exercise rights under the Plan.  The Participant's Beneficiary may exercise the Participant's rights to the extent they are exercisable under the Plan following the death of the Participant.
11.05.Taxes.  The Company shall be entitled, if the Administrator deems it necessary or desirable, to withhold (or secure payment from the Participant in lieu of withholding) the amount of any withholding or other tax required by law to be withheld or paid by the Company with respect to an Award, and the Company may defer payment or issuance of the cash or shares upon exercise or vesting of an Award unless indemnified to its satisfaction against any liability for any such tax. The amount and method of such withholding or tax payment shall be determined by the Administrator and shall be payable by the Participant at such time as the Administrator determines in accordance with the following rules:
(a)The Administrator may require or, if approved by the Administrator, the Participant (provided that he or she is not a Canadian Person) may elect, to have the withholding requirement satisfied (i) if approved in advance by the Administrator, by having withheld from such Award at the appropriate time that number of shares of Common Stock, rounded down to the nearest whole share, whose Fair Market Value is equal to the minimum statutory withholding with respect to the Award or such greater amount that is permitted by applicable law and by the Administrator, provided such greater amount does not exceed the maximum statutory rates in the applicable jurisdictions or cause adverse accounting consequences for the Company, (ii) by direct payment to the Company in cash of the amount of any taxes required to be withheld with respect to such Award (iii) by withholding from the wages or other cash compensation paid to the Participant, (iv) by such other method that is approved by the Administrator or (v) by a combination of the foregoing methods. Participants that are Canadian Persons shall be required to meet their withholding requirements in the manner described in paragraph 11.05(a)(ii).
(b)In the case of Participants who are subject to Section 16 of the Exchange Act, the Administrator may impose such limitations and restrictions as it deems necessary or appropriate with respect to the delivery or withholding of shares of Common Stock to meet tax withholding obligations.
11.06.Surrender of Awards; Authorization of Repricing.  Any Award granted under the Plan may be surrendered to the Company for cancellation on such terms as the Administrator and the holder approve.  Without requiring shareholder approval, the Administrator may substitute a new Award under this Plan in connection with the surrender by the Participant of an equity compensation award previously granted under this Plan or any other plan sponsored by the Company, including the substitution or grant of (i) an Option or Stock Appreciation Right with a lower exercise price than the Option or Stock Appreciation Right being surrendered, (ii) a different type of Award upon the surrender or cancellation of an Option or Stock Appreciation Right with an exercise price above the Fair Market Value of the underlying Common Stock on the date of such substitution or grant, or (iii) any other Award constituting a repricing of an Option or Stock Appreciation Right.
11.07.Adjustments to Reflect Capital Changes.
(a)Recapitalization.  In the event of any corporate event or transaction (including, but not limited to, a change in the Common Stock or the capitalization of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, partial or complete liquidation, stock dividend, stock split, reverse stock split, split up, spin-off, or other distribution of stock or property of the Company, a combination or exchange of Common Stock, dividend in kind, or other like change in capital structure, number of outstanding shares of Common Stock, distribution (other than normal cash dividends) to shareholders of the Company, or any similar corporate event or transaction, the Administrator, in order to prevent dilution or enlargement of Participants' rights under this Plan, shall make equitable and appropriate adjustments and substitutions, as applicable, to or of the number and kind of shares subject to outstanding Awards, the Purchase Price or Exercise Price for such shares, the number and kind of shares available for future issuance under the Plan and the maximum number of shares in respect of which Awards can be made to any Participant in any calendar year, and other determinations applicable to outstanding Awards.  The Administrator shall have the power and sole discretion to determine the amount of the adjustment to be made in each case.
(b)Change in Control. Upon a Change in Control or a merger, reorganization or other transaction following which the Company is not the surviving entity, except as otherwise provided in an Award Agreement or in an employment, change in control, severance or similar agreement to which the Company and the Participant are parties, all outstanding Awards shall be treated in the manner described in the definitive transaction agreement to which the Company is party (or, if there is no such agreement, in the manner determined by the Administrator), which agreement or
49
determination need not treat all Awards in an identical manner. The treatment specified in the definitive transaction agreement or as determined by the Administrator may include, without limitation, one or more of the following with respect to outstanding Awards:
(i)the cancellation of Awards (whether vested or unvested);
(ii)the assumption or substitution of Awards with appropriate adjustments as to the number and kind of Shares or other securities or property and applicable exercise price, base amount or purchase price;
(iii)the acceleration of vesting of Awards;
(iv)the cancellation of vested Awards, together with a payment to the Participants holding such vested Awards so canceled of an amount based upon the consideration being paid per Share in connection with such Change in Control or other transaction in cash or, in the sole discretion of the Administrator, in the form of such other consideration necessary for a Participant to receive property, cash or securities (or a combination thereof) as the Participant would have been entitled to receive upon such Change in Control or other transaction, if the Participant had been, immediately prior to such Change in Control, the holder of the number of Shares covered by the Award at such time, less any applicable exercise price or base amount; provided, however, that holders of vested Options and vested SARs shall be entitled to such consideration only if the per-Share consideration exceeds the applicable exercise price or base amount, and to the extent that the per-Share consideration is less than or equal to the applicable exercise price or base amount, such vested Options and vested SARs shall be cancelled for no consideration; or
(v)the replacement of Awards with a cash incentive program that preserves the value of the Awards so replaced (determined as of such Change in Control or other transaction).
(c)Acquisition or other Transactions.  After any merger, stock purchase, asset purchase or other form of transaction in which the Company or an Affiliate shall be a surviving corporation, the Administrator may grant substituted or assumed Awards under the provisions of the Plan, pursuant to and in compliance with the requirements of Section 424 of the Code or (in the case of Options issued to Canadian Persons) subsection 7(1.4) of the Income Tax Act (Canada), replacing old equity awards granted under a plan of another party to the transaction whose shares or stock subject to the old equity awards may no longer be issued following the Merger.  The foregoing adjustments and manner of application of the foregoing provisions shall be determined by the Administrator in its sole discretion.  Any such adjustments may provide for the elimination of any fractional shares which might otherwise become subject to any Options. Additionally, available shares under a stockholder approved plan of an acquired company (as appropriately adjusted to reflect such acquisition) may be used for Awards under the Plan and shall not be counted against the Share limit set forth in 4.01, except as required by the rules of any applicable stock exchange.
11.08.No Right to Continued Service.  No person shall have any claim of right to be granted an Award under this Plan. Neither the Plan nor any action taken hereunder shall be construed as giving any Participant any right to be retained in the service of the Company or any of its Subsidiaries.
11.09.Awards Not Includable for Benefit Purposes.  Payments received by a Participant pursuant to the provisions of the Plan shall not be included in the determination of benefits under any pension, group insurance or other benefit plan applicable to the Participant which is maintained by the Company or any of its Subsidiaries, except as may be provided under the terms of such plans or determined by the Board.
11.10.Governing Law.  All determinations made and actions taken pursuant to the Plan shall be governed by the laws of Nevada and construed in accordance therewith.
11.11.No Strict Construction.  No rule of strict construction shall be implied against the Company, the Administrator, or any other person in the interpretation of any of the terms of the Plan, any Award granted under the Plan or any rule or procedure established by the Administrator.
11.12.Compliance with Rule 16b-3.  It is intended that, unless the Administrator determines otherwise, Awards under the Plan be eligible for exemption under Rule 16b-3.  The Board is authorized to amend the Plan and to make any
50
such modifications to Award Agreements to comply with Rule 16b-3, as it may be amended from time to time, and to make any other such amendments or modifications as it deems necessary or appropriate to better accomplish the purposes of the Plan in light of any amendments made to Rule 16b-3.
11.13.Captions.  The captions (i.e., all Section headings) used in the Plan are for convenience only, do not constitute a part of the Plan, and shall not be deemed to limit, characterize or affect in any way any provisions of the Plan, and all provisions of the Plan shall be construed as if no captions have been used in the Plan.
11.14.Severability.  Whenever possible, each provision in the Plan and every Award at any time granted under the Plan shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of the Plan or any Award at any time granted under the Plan shall be held to be prohibited by or invalid under applicable law, then (a) such provision shall be deemed amended to accomplish the objectives of the provision as originally written to the fullest extent permitted by law and (b) all other provisions of the Plan and every other Award at any time granted under the Plan shall remain in full force and effect.
11.15.Amendment and Termination.
(a)Amendment.  The Board shall have complete power and authority to amend the Plan at any time; provided, however, that the Board shall not, without the requisite affirmative approval of stockholders of the Company, make any amendment which requires stockholder approval under the Code or under any other applicable law or rule of any stock exchange which lists Common Stock or Company Voting Securities.  No termination or amendment of the Plan may, without the consent of the Participant to whom any Award shall theretofore have been granted under the Plan, adversely affect the right of such individual under such Award.
(b)Termination.  The Board shall have the right and the power to terminate the Plan at any time. No Award shall be granted under the Plan after the termination of the Plan, but the termination of the Plan shall not have any other effect and any Award outstanding at the time of the termination of the Plan may be exercised after termination of the Plan at any time prior to the expiration date of such Award to the same extent such Award would have been exercisable had the Plan not terminated.
11.16.Foreign Qualified Awards.  Awards under the Plan may be granted to such employees of the Company and its Subsidiaries who are residing in foreign jurisdictions as the Administrator in its sole discretion may determine from time to time. The Administrator may adopt such supplements to the Plan as may be necessary or appropriate to comply with the applicable laws of such foreign jurisdictions and to afford Participants favorable treatment under such laws; provided, however, that no Award shall be granted under any such supplement with terms or conditions inconsistent with the provision set forth in the Plan.
11.17.Dividend Equivalents.  For any Award granted under the Plan, the Administrator shall have the discretion, upon the Date of Grant or thereafter, to establish a Dividend Equivalent Account with respect to the Award, and the applicable Award Agreement or an amendment thereto shall confirm such establishment.  If a Dividend Equivalent Account is established, the following terms shall apply:
(a)Terms and Conditions.  Dividend Equivalent Accounts shall be subject to such terms and conditions as the Administrator shall determine and as shall be set forth in the applicable Award Agreement.  Such terms and conditions may include, without limitation, for the Participant's Account to be credited as of the record date of each cash dividend on the Common Stock with an amount equal to the cash dividends which would be paid with respect to the number of shares of Common Stock then covered by the related Award if such shares of Common Stock had been owned of record by the Participant on such record date.
(b)Unfunded Obligation.  Dividend Equivalent Accounts shall be established and maintained only on the books and records of the Company and no assets or funds of the Company shall be set aside, placed in trust, removed from the claims of the Company's general creditors, or otherwise made available until such amounts are actually payable as provided hereunder.
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11.18.Adjustment of Performance Goals and Targets.  Notwithstanding any provision of the Plan to the contrary, the Administrator shall have the authority to adjust any Performance Goal, performance target or other performance-based criteria established with respect to any Award under the Plan if circumstances occur (including, but not limited to, unusual or nonrecurring events, changes in tax laws or accounting principles or practices or changed business or economic conditions) that cause any such Performance Goal, performance target or performance-based criteria to be inappropriate in the judgment of the Administrator.
11.19.Legality of Issuance.  Notwithstanding any provision of this Plan or any applicable Award Agreement to the contrary, the Administrator shall have the sole discretion to impose such conditions, restrictions and limitations (including suspending exercises of Options or Stock Appreciation Rights and the tolling of any applicable exercise period during such suspension) on the issuance of Common Stock with respect to any Award unless and until the Administrator determines that such issuance complies with (i) any applicable registration requirements under the Securities Act of 1933, as amended, or the Administrator has determined that an exemption therefrom is available, (ii) any applicable listing requirement of any stock exchange on which the Common Stock is listed, (iii) any applicable Company policy or administrative rules, and (iv) any other applicable provision of state, federal or foreign law, including foreign securities laws where applicable.
11.20.Restrictions on Transfer.  Regardless of whether the offering and sale of Common Stock under the Plan have been registered under the Securities Act of 1933, as amended, or have been registered or qualified under the securities laws of any state, the Company may impose restrictions upon the sale, pledge, or other transfer of such Common Stock (including the placement of appropriate legends on stock certificates) if, in the judgment of the Company and its counsel, such restrictions are necessary or desirable to achieve compliance with the provisions of the Securities Act of 1933, as amended, the securities laws of any state, the United States or any other applicable foreign law.
11.21.Further Assurances.  As a condition to receipt of any Award under the Plan, a Participant shall agree, upon demand of the Company, to do all acts and execute, deliver and perform all additional documents, instruments and agreements which may be reasonably required by the Company, to implement the provisions and purposes of the Plan.
11.22.Provisions for Foreign Participants. The Administrator will have the power, subject to, and within the limitations of, the express provisions of the Plan, to adopt such procedures and sub-plans as are necessary or appropriate to permit and facilitate participation in the Plan by, or take advantage of specific tax treatment for Awards granted to Participants who are foreign nationals or employed outside the United States (provided that Administrator approval will not be necessary for immaterial modifications to the Plan or any Award Agreement to ensure or facilitate compliance with the laws of the relevant foreign jurisdiction).
11.23.Clawback/Recovery.  All Awards granted under the Plan will be subject to recoupment in accordance with any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other Applicable Law and any clawback policy that the Company otherwise adopts, to the extent applicable and permissible under Applicable Law.  In addition, the Administrator may impose such other clawback, recovery or recoupment provisions in an Award Agreement as the Administrator determines necessary or appropriate, including but not limited to a reacquisition right in respect of previously acquired Shares or other cash or property upon the occurrence of Cause.  No recovery of compensation under such a clawback policy will be an event giving rise to a Participant’s right to voluntary terminate employment upon a “resignation for good reason” or for a “constructive termination” or any similar term under any plan of or agreement with the Company.
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