美国
证券交易委员会
华盛顿特区20549
14A议程
根据第14(a)条的代理声明书
1934年证券交易所法案
申报人申报 ☒
由除了登记人以外的一方提出申报 ☐
勾选适当的方框：
| ☐ | 初步代理声明书 |
| ☐ | 机密，仅供委员会使用 (适用于第14a-6(e)(2)条规定) |
| ☒ | 决定性代理声明书 |
| ☐ | 决定性额外材料 |
| ☐ | 根据§240.14a-12条申请材料 |
| asp isotopes 公司 |
| (依章程所定之登记人之名称) (如果提交委任书的人不是注册人，则为提交委任书的人的名字) |
支付提交费（勾选适当的方块）：
| ☒ | 不需缴付费用。 |
| ☐ | 已在初步资料中支付费用。 |
| ☐ | 依据交易所法规14a-6(i)(1)和0-11条款，根据展示表格计算的费用。 |
华盛顿特区宾夕法尼亚大道601号
南楼，900套房
华盛顿特区20004区
2024年股东年度大会通知
和代理声明
亲爱的股东：
ASP Isotopes 公司的股东年度大会（“年度大会”）将于2024年11月20日，东部时间上午10时举行。 年度大会将以虚拟形式通过互联网现场直播进行。 您将能够通过访问网址加入年度大会，并在年度大会期间在线投票和提交问题。 https://web.lumiconnect.com/253072518我们设计了虚拟年度大会，以确保股东有机会参与，就像他们在亲自出席会议时一样，包括在虚拟会议平台上投票和提问的权利。 因此，在我们的代理材料中提及“亲自”出席或投票，指的是在虚拟年度大会上虚拟地出席或投票。
周年会议将举行，主要目的如下：
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| 1. | 选举两名董事担任为期三年、至2027年股东大会届满的II级董事。 |
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| 2. | 审议并投票通过修改后的Quantum Leap Energy LLC 2024股权激励计划。 |
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| 3. | 审议并投票通过确认EisnerAmper LLP为该公司独立的注册会计师，其任期为截至2024年12月31日的财政年度；以及 |
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| 4. | 处理其他可能提交股东大会或任何延期或推迟的其他业务。 |
上述业务事项详细说明于附上的代理委托书中，该书是本通知的一部分，并已参照并纳入。我们董事会已确定将2024年9月23日作为业务结束日，以确定股东有权收到年度股东大会通知以及投票的股东，或者任何年度股东大会之休会或延期。
您的投票很重要。无论您是否打算参加年度股东大会，我们建议您阅读此通知附带的代理人声明，并尽快提交您的代理人或投票指示。有关如何投票您的股份的具体指示，请参阅附有此通知的代理人声明第1页开始的指示部分。有关年度会议和投票的一般信息如果您打算参加我们的年度股东大会并希望在会议上投票您的股份，您可以在代理人被投票之前的任何时间进行。
所有股东都诚挚地邀请出席会议。
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| 董事会的要求 |
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| 保罗·E·曼 |
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华盛顿特区
2024年10月18日
您的投票非常重要。无论您是否计划参加年度股东大会，我们都建议您尽快透过互联网、电话或邮件提交您的代理或投票指示。
这份年度会议通知书、代理委托书和委托表将首次于2024年10月18日左右发放。代理材料和我们截至2023年12月31日的第10-k表格年度报告可于2024年10月18日起透过浏览http://www.astproxyportal.com/ast/27081来存取。
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华盛顿特区宾夕法尼亚大道601号，南大楼，900套房
华盛顿特区20004区
代理人声明书
2024股东年度大会
将于2024年11月20日(周三)举行
ASP同位素公司（以下简称“公司”或“ASPI”）的董事会正在征集代理，用于2024年股东年度大会（以下简称“年度大会”），该会议将于2024年11月20日星期三上午10点（美国东部时间）举行，以及任何推迟或中止该会议。年度大会将仅以虚拟形式举行，通过互联网现场网络直播。您将能够参加年度大会，并在年度大会期间透过访问网站在线投票和提交问题。 https://web.lumiconnect.com/253072518我们设计了虚拟年度大会，以确保股东有机会参与，就像他们在亲自出席会议时一样，包括在虚拟会议平台上投票和提问的权利。 因此，在我们的代理材料中提及“亲自”出席或投票，指的是在虚拟年度大会上虚拟地出席或投票。
为什么我会收到这些代理文件？
我们提供这些代理资料给您，是因为我们的董事会正在征求您在年度股东大会上的委任书。这份代理声明概述了与您在年度股东大会上投票相关的信息。所有股东均可方便的出席年度股东大会。但您并不需要出席会议就能投票。相反，您可以简单地按照通知上提供的指示完成并提交您的委任书，或者，如果您要求获得纸质代理资料，请完成、签署并返回附上的委任卡，或根据委任卡上的指示通过电话或互联网进行投票。
我们打算于2024年10月18日左右向截至2024年9月23日的所有股东寄送我们的代理材料和截至2023年12月31日的《2023年年度报告》。我们的2024年代理材料和2023年年报也可在以下网址查阅：http://www.astproxyportal.com/ast/27081只有在记录日期持有我们普通股的股东有权在年度股东大会上投票。在记录日期，我们的普通股股份共有68,409,116股。普通股是我们唯一有投票权的股票类别。
为什么今年的会议以虚拟方式举行？
我们相信虚拟会议将提供扩大股东进入和参与，以及改善通信。您将能够在年度股东大会期间线上参加并投票，并提交问题，请访问 https://web.lumiconnect.com/253072518 ，并使用包含在您的代理人卡或经纪人、银行或其他代理提供的投票指示表上的11位控制号码。线上报到将在年度股东大会开始前约15分钟在虚拟会议网站上开放。
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| 目录 |
我在投票什么？
有两个提案安排投票：
| 提案1 : | 选举两名董事担任为期三年的II类董事。 |
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| 提案2 : | 审议并投票批准修订后的Quantum Leap能源有限责任合伙公司2024年股权激励计划。 |
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| 提议 3: : | 审议并投票批准任命EisnerAmper LLP为我们独立的注册会计师，任期至2024年12月31日。 |
我有多少票？
截至2024年9月23日，您所拥有的每一股普通股票均享有一票投票权。
一般股东记录与以「街名」持股的受益人之间有何不同？
如果您的股份直接注册在我们的登记和转让代理人Equiniti Trust Company, LLC（曾为美国股票转仓及信托公司, LLC）名下，您将被视为 持股纪录的股东 ，我们的代理材料已直接提供给您。如果您的股份存放在股票券商账户、银行、券商或其他代理人名下，则您被视为该等股份的 街道名称 实益拥有人，我们的代理材料将透过被视为该等股份记录所有人的银行、券商或其他代理人转交给您。作为实益拥有人，您有权指示您的银行、券商或其他代理人如何投票您的股份。由于实益拥有人不是 持股纪录的股东，因此您无法亲自在年度股东大会上投票，除非您从持有您股份的券商、银行、受托人或提名人那里取得“法定代理人”，使您有资格在会议上投票。如果您是实益拥有人且不希望亲自投票或您无法出席年度股东大会，您可以按照您的券商、银行、受托人或其他提名人提供的指示进行投票。
我如何透过代理方式投票？
就选举 Class II 董事的选举，您可以投票「赞成」或「反对」任何您指定的提名人。 至于 Quantum Leap 能源有限公司 2024年股权激励计划的核准，经修改，以及对 EisnerAmper LLP 被指派为我们独立注册的会计师事务所的核证，您可以投票「赞成」、「反对」或弃权不投票。
记名股东：以您的名义登记的股份
如果您是记名股东，有几种方式可以投票。无论您是否打算参加股东大会，我们建议您透过代理投票来确保您的选票被计算在内。
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| · | 透过网际网路: 您可以在 www.voteproxy.com，每周七天，每天24小时按照通知中的网上投票说明进行网上投票，或者如果您收到印刷版本的代理资料，则按照您的代理卡上的说明。 |
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| · | 透过电话: 您可以拨打1-800-776-9437，使用触控电话进行投票，每周七天，每天24小时按照通知中的电话投票说明进行投票，或者如果您收到印刷版本的代理资料，则按照您的代理卡上的说明。 |
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| · | 在会议上: 参加年度会议并进行虚拟投票，请存取 https://web.lumiconnect.com/253072518 并选择“我有控制码”按钮。然后，您将被引导到一个画面，您需要输入：(1) 代理卡上的11位数控制码; 和(2) 会议密码“aspi2024”。请注意，会议密码区分大小写。完成这些步骤后，选择“登录”按钮，您将被带到年度会议页面（“会议页面”），在那里您可以投票、提交书面问题并收听会议。如果您是记录股东且遗失了您的11位数控制码，请致电Equiniti公司，电话号码为(800) 937-5449。 |
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| · | 邮寄，如果您要求打印您的代理材料副本：您可以使用代理卡投票，方法是填写、签署、日期并将代理卡投入所提供的邮寄回信信封中。如果您正确完成您的代理卡并及时寄回以投票，您的代理（您代理卡上命名的个人之一）将按照您指示投票。如果您签署了代理卡但没有做出具体选择，您的股份将按照我们的董事会建议投票，只要允许。 如果在年度大会上提出任何其他事项，您的代理将根据他或她的最佳判断进行投票。截至本代理声明日期，我们目前没有任何需要在会议上处理的事项，除了本代理声明中讨论的事项。 |
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实益拥有人：股份登记在经纪、银行或其他代理人的名下
如果您是注册在券商、银行或其他代理人名下的股东，并要求获得代理资料的印刷本，您应该已经从该组织而非我们直接收到了附有代理资料的投票指示书和投票指示。只需填写并邮寄投票指示书，以确保您的投票被计算。您可能有资格在网路或电话上电子投票。许多银行和券商提供网路和电话投票。如果您是股东，想要「虚拟」参加年度股东大会，您必须从您的券商、银行或其他代理人那里获取有效的委托书。按照附有这些代理资料的券商、银行、受托人或其他代理人的指示，或联系该组织以请求委托书表格。
我可以撤回我的代理吗？
如果您是一位 持股记录者若您提供代理投票，您可在行使代理权之前随时撤销。您可以以下三种方式之一撤销您的代理权：
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| · | 您可以使用上述的任何方法之一，在截止日期前（直至适用方法的截止日期前），授予一份较晚日期的新代理，自动撤销早期的代理。 |
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| · | 您可以在股东大会之前以书面通知我们的公司秘书，通过邮寄撤销通知书至ASP Isotopes Inc. 公司秘书，地址为 601 Pennsylvania Avenue NW, South Building, Suite 900, Washington, DC 20004。 |
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| · | 您可以亲自在股东大会上投票；但仅仅在股东大会上的虚拟出席并不会撤销您的代理权。 |
如果您持有您在银行、代理人或获得授权代表投票的法律委任书，您可以通过向他们提供的指示修改您的投票。 街道名称如果您持有您在银行、代理人或受托人指示，则可能通过参加年度股东大会并亲自出席会议来投票。
我能参加并在虚拟会议上投票吗？
记录持有人假如您截至2024年9月23日业务结束时是记录股东（即您以自己的名义持有股份，并反映在我们的转让代理人Equiniti Trust Company, LLC（原名American Stock Transfer & Trust Company, LLC）的记录中），您可以通过访问... https://web.lumiconnect.com/253072518 并选择“我有控制号码”按钮。然后将被引导到一个屏幕，您将输入：（1）代表卡上的11位控制编号；和（2）会议密码“aspi2024”。请注意，会议密码区分大小写。完成这些步骤后，选择“登录”按钮，将带您到年度会议页面“会议页”，您可以投票、提交书面问题并聆听会议。如果您是记录股东且遗失了11位控制号码，请致电Equiniti (800) 937-5449。
有利益的所有者如果您是截至2024年9月23日收市时的有利益所有人（即通过中介，如银行、经纪人或其他代理人以“街名”持有股份），您必须事先注册参加每年会议。要注册，请从拥有您股份的银行、经纪人或其他代理人那取得一份合法代理，然后将合法代理与您的姓名和电子邮件地址一同提交给Equiniti，以获得一个11位数的控制号码，用来进入上述提供的年度会议网站。任何与您的代理材料一同提供的控制号码，可能是一个16位数字，将提供进入年度会议网站的访问权限。注册请求和合法代理提交应标注为“合法代理”，并且必须在2024年11月15日下午5点（Et时间）或之前收到Equiniti。所有此类请求应通过以下方式提交：（1）透过电子邮件发送至helpAST@equiniti.com，（2）透过传真发送至（718）765-8730，或（3）邮寄至Equiniti Trust Company, LLC, 注：代理表计算部门，48 Wall Street, 23楼，纽约，NY 10005。获取合法代理可能需要几天时间，股东建议尽可能提前注册。一旦从Equiniti获得您的11位数控制号码，请按照上述“股份持有人”指南参加年度会议。 不 一旦您从Equiniti获得您的11位数控制号码，请按照上述“股份持有人”指南参加年度会议。
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以宾客身份参加：如果您是记录持有人或实益拥有人，并且希望以仅限收听的宾客身份进入年度会议，请前往 https://web.lumiconnect.com/253072518 ，并选择“我是宾客”按钮。请注意，如果以宾客身份参与会议，则将无法提问或投票。
持股人和受益人如有任何关于出席年度大会的问题，应致电Equiniti，电话号码为(800) 937-5449。如果您在访问年度大会时遇到任何困难，请访问https://go.lumiglobal.com/faq获取协助。
卖盘如果您以股东记录或已注册参加年度会议的受益所有者身份出席会议，您可以点击出现在会议页面顶部工具栏右侧的讯息图示，然后输入并提交您的问题。
表决股份如果您是记录股东或已注册出席会议的受益所有人，您可以在会议期间点击会议页面上的「代理投票网站」链接并遵循提示进行投票。
什么构成了法定人数？
在2024年9月23日占我们优先股大多数的持有人亲自出席或通过代理人出席的情况下，即约34,204,559股，构成会议的法定人数，使我们能够进行业务。
批准每个提案需要多少票？
提案1：选举第II类董事。 获得最多「赞成」票（在场或透过代理适当投票的票）的两名提名人将被选上。
提案2：批准量子飞跃能源有限责任公司2024年股权激励计划的修订版。 对量子飞跃能源有限责任公司2024年股权激励计划的修订版的批准，必须获得在会议上亲自出席或由授权代理人代表的股份中，获得多数投票权的「支持」票。
提案3：批准独立注册公共会计师事务所。 EisnerAmper LLP的任命必须获得出席会议的股东亲自或通过代理人代表的投票权的多数「赞成」票才能生效。
投票结果将由为年度会议指定的选举监察员进行统计和认证。
如果我没有指定我的股票应该如何投票，那么我的股票将如何投票？
如果您是登记的股东，并且您在互联网或电话投票时表示希望按照我们的董事会推荐进行投票，那么您的股份将在年度会议上根据我们的董事会对所有提交投票事项的建议进行投票。同样，如果您要求打印副本的委托材料，并签署并返回委托卡，但未表示您希望如何就特定提案或所有提案投票，那么对于您未表明的任何提案，您的股份将根据我们董事会的建议进行投票。
如果您是以街名持有股票的受益所有者，并且没有向持有您股票的机构提供具体的投票指示，那么持有您股票的机构通常可以自行酌情对「常规」事务进行投票，但不能对「非常规」事务进行投票。如果持有您股票的机构没有收到您关于如何在非常规事务上投票的指示，该机构将通知选举检察官，表示它没有权力就该事务对您的股票进行投票。这通常被称为「经纪人无票」。
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| 目录 |
弃权票、缺席投票和经纪人未投票的影响是什么？
出席年度会议但不投票的股东所持普通股，以及以代理形式表示的对特定提案投票的弃权，将被视为出席，以便确定法定人数的存在。为了确定我们的股东是否批准了经修订的量子跳跃能源有限责任公司2024年股权激励计划，并且是否确认了我们独立注册公共会计师事务所EisnerAmper LLP的任命，弃权的效果与对这些提案的「反对」投票相同。关于董事的选举，由于根据我们的修订和重述章程以及适用的州法律，选举是通过多数投票来决定的，因此弃权票不会在确定该提案的结果时计算在内。
通过代理进行的股票代表，在反映经纪人未投票的情况下，将被计入确定是否存在法定人数的目的。如上所述，经纪人未投票发生在持有股票的组织没有收到受益所有人的指示，并且没有权力就某些非例行事项投票。关于董事的选举以及对Quantum Leap Energy LLC 2024年股权激励计划（经修订）的批准，这两个都被视为非例行事项，因此经纪人未投票将不会被计算为已投票，并且对投票结果没有影响。然而，EisnerAmper LLP的任命确认被视为例行事项，经纪人或其他提名人对此具有投票的自由裁量权。因此，这一提案可能不会导致经纪人未投票。
如果我在投票或关于年度会议的技术问题上需要帮助，该怎么办？
如果您在年度会议期间访问或使用虚拟会议网站时遇到技术问题，您应该拨打虚拟会议网站上的技术支持电话号码。虚拟会议网站支持在最新版本的相关软件和插件上运行的浏览器（例如：互联网浏览器、Firefox、Chrome和Safari）及设备（台式电脑、笔记本电脑、平板电脑和手机）。每位参与者应确保拥有良好的Wi-Fi或其他互联网连接。
谁在承担征集这些代理的费用？
我们将承担所有 soliciting 这些代理的费用。
我该如何获取2023年度报告？
如果您想要一份我们的2023年年报，我们将免费寄给您。请写信至：
ASP Isotopes 公司
华盛顿特区宾夕法尼亚大道601号，南楼，900套房
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注意：公司秘书
我们所有的SEC文件也可以在我们的网站www.aspisotopes.com的「投资者—SEC文件」部分免费获取。
我怎么才能查到年会上投票结果？
初步投票结果将在年度会议上公布。最终投票结果将在我们的当前报告中发布，该报告将在年度会议后四个业务日内提交给证券交易委员会。如果在会议后的四个业务日内，我们无法及时获得最终投票结果以提交8-K表格，我们打算提交一个8-K表格以公布初步结果，并在我们得知最终结果后的四个业务日内提交另一份8-K表格以发布最终结果。
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我们的业务事务在董事会的指导下进行，目前董事会由六名成员组成，其中四名符合纳斯达克股票市场有限责任公司（「纳斯达克」）的上市标准，被视为 "独立"。董事会正在提名两名候选人进行选举。我们的董事会分为三类，任期为三年且是错开的。在每次股东年会上，将选举一类董事，任期为三年，以接替同一类正在到期的董事。目前有两位II类董事的任期将在年会结束时到期：Michael Gorley博士和Duncan Moore博士。我们的董事会已提名Michael Gorley博士和Duncan Moore博士在年会上续任，作为II类董事，直至2027年股东年会，或直至其继任者正式当选并合格。
下表列出了截至2024年9月23日的每位在年度会议上任期到期的董事和每位在年度会议上任期未到期的董事的姓名、年龄及其他相关信息。
|
姓名 |
|
类别 |
|
年龄 |
|
职位 |
|
董事 自 |
|
当前 术语 到期 |
| 到期 任期 提名的 提名 |
|
| 董事提名人 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 迈克尔·戈尔利博士 (2) |
| II |
| 37 |
| 董事 |
| 2023 |
| 2024 |
| 2027 |
|
| 邓肯·摩尔，博士 (1)(2)(3)(4) |
| II |
| 65 |
| 董事 |
| 2021 |
| 2024 |
| 2027 |
|
| 董事 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 亨德里克·斯特里登，博士。 |
| III |
| 64 |
| 董事 |
| 2021 |
| 2025 |
| — |
|
| 托德·维德，万.D. (1)(3) |
| III |
| 59 |
| 董事 |
| 2021 |
| 2025 |
| — |
|
| 保罗·曼 |
| I |
| 48 |
| 执行主席、首席执行官和董事 |
| 2021 |
| 2026 |
| — |
|
| 罗伯特·瑞安 (1)(2) |
| I |
| 56 |
| 董事 |
| 2024 |
| 2026 |
| — |
|
| (1) | 我们的审计委员会成员 |
| (2) | 我们的提名与公司治理委员会成员 |
| (3) | 我们的薪酬委员会成员 |
| (4) | 我们的特别项目委员会成员 |
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| 目录 |
董事提名人
迈克尔·戈尔利教授，博士。于2023年10月加入我们的董事会。戈尔利教授自2020年9月起担任英国原子能局（UKAEA）首席科技师。在这一角色中，戈尔利教授在过去三年里担任UKAEA核聚变技术的战略领导者和项目领域经理。在担任目前职位之前，戈尔利教授于2018年8月至2020年9月担任材料科技小组组长，以及2016年6月至2018年8月担任材料科技项目经理。在这些角色中，戈尔利教授负责建立材料科技小组和支持材料测试实验室，并领导EUROfusion工程数据和设计集成小组。此外，戈尔利教授自2021年6月以来还担任英国布里斯托大学的客座教授。戈尔利教授在牛津大学获得了材料科学的博士学位（DPhil），论文主题为ODS钢（高性能应用的专用合金）。
我们相信，Gorley教授在聚变科技和聚变材料方面的丰富经验，有助于董事会理解和分析复杂的监管和业务问题。
邓肯·摩尔博士 自 2021 年 10 月起在董事会任职。邓肯自2008年5月起担任东西方资本合伙人，该公司专注于投资亚洲的医疗行业。此前，从1991年到2008年，摩尔博士是摩根士丹利排名第一的药物分析师，领导该公司的全球医疗保健股票研究团队。在剑桥大学期间，他与两位同事共同创立了一家名为Ultra Clone的医疗诊断公司，这开启了20年的医疗资本市场分析职业生涯。1986年，他参与设立了BankInvest生物技术基金，并在该基金的科学顾问委员会任职。摩尔博士曾在爱丁堡接受教育，并在利兹大学学习生物化学和微生物学。他拥有剑桥大学的哲学硕士和博士学位，同时也是该校的博士后研究员。目前，作为Lamellar Biomedical和Alarity Therapeutics A/S（前身为肿瘤风险投资公司A/S）的董事长，他是生物医学公司的积极投资者。此外，他在Forward Pharma A/S、Cycle Pharma和GH Research担任董事会职务。邓肯是苏格兰生命科学协会主席。
我们相信，摩尔博士在业务活动中担任领导角色所积累的经验、见解和知识是重要的资格、技能和经验，为董事会提供了宝贵的支持，并极大地提升了董事会的整体知识水平和应对我们面临的问题的能力。
继续董事
保罗·E·曼 Paul于2021年9月共同创办了我们的公司，并自公司成立以来一直担任我们的董事长兼首席执行官以及董事会成员。Paul还担任了我们的首席财务官直至2022年9月。在加入ASPI之前，Paul曾于2018年6月至2020年4月担任生物技术公司PolarityTE, Inc.（纳斯达克代码：PTE）的首席财务官。在此之前，他负责DSAM Partners LLC这家全球对冲基金的医疗保健投资。在他的职业生涯早期，他担任Highbridge Capital的投资组合经理，管理医疗保健和生物技术领域的投资。在Highbridge Capital之前，从2013年8月至2016年3月，他在索罗斯基金管理公司工作，负责数十亿美元在医疗保健和化学品公司的投资。在作为医疗保健和化学品投资者的职业生涯中，Paul帮助创办和资助了众多早期和初创公司。在转向买方之前，Paul在摩根士丹利和德意志银行担任了11年的卖方分析师。他共同管理了摩根士丹利的医疗保健研究团队，该团队在《机构投资者》、《格林威治》和路透社评选中名列前茅。Paul还担任了英国超过一半制药公司的企业经纪。Paul的职业生涯始于宝洁公司的研究科学家，他被列为多个Olay化妆品系列皮肤霜的发明人。他还是Abeona Therapeutics（纳斯达克代码：ABEO）的一名非执行独立董事，担任审计委员会主席，并且还是Healthtech Solution Inc.（场外交易代码：HLTT）的董事，担任董事会主席并在审计委员会任职。他还是专注于精准肿瘤学的私人生物技术公司Varian Biopharma的共同创始人和董事长。Paul拥有英国剑桥大学的硕士学位（Cantab）和工程硕士学位（MEng），他在该校学习自然科学和化学工程，并且是CFA持证人。
我们相信，作为我们的创始人和首席执行官，Mann先生的详细知识、独特视角和见解，以及他曾作为另一家上市公司的首席财务官的经验和在医疗保健、生物技术以及化学品公司的投资管理经验，使他有资格在我们的董事会中任职，并使他适合担任我们的主席。
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| 目录 |
罗伯特·瑞安 自2024年1月起，瑞安先生一直担任我们董事会的成员。瑞安先生是一位私人投资者，在投资银行、股权投资和国际金融法领域拥有超过30年的经验。瑞安先生曾于2019年1月至2023年7月担任Balbec Capital LP的合伙人，并于2013年1月至2019年1月担任Balbec Capital LP的董事总经理。在加入Balbec Capital LP之前，瑞安先生曾与多家国际投资银行合作。瑞安先生的职业生涯始于一家领先的英国跨国律师事务所，担任律师。瑞安先生在莱斯特大学获得法学学士学位。
董事会认为，瑞安先生丰富的董事会经验和财务专长有助于董事会理解和分析复杂问题，特别是在公司寻求扩大其业务时，这使他有资格担任我们的董事会成员。
亨德里克·斯特里登，博士。 自2022年1月以来，他担任我们的首席科技官，并自2022年1月以来一直在我们的董事会任职。斯特里登博士共同开发了被称为「气动分离过程」（ASP）的同位素分离技术。1993年，斯特里登博士共同创立了SDI有限公司（随后更名为Klydon），这是一家开发ASP的研发公司。斯特里登博士曾任首席执行官的Klydon成功利用ASP技术分离了硅（Si28）、碳（C13 & C14）、氧（O-18）和钼（Mo-100）。自3年前O-18工厂开始商业运营以来，Klydon已将O-18销售至南非放射药房市场。斯特里登博士在南非原子能公司（AEC）任职科学家时开始进行同位素分离的工作，他专注于重同位素的激光分离。斯特里登博士于1993年离开AEC，共同创立了Klydon。斯特里登博士拥有普雷托利亚大学的理学学士荣誉学位（物理学与数学）（1983），波特伊丽莎白大学的硕士学位（物理学）（1990），纳塔尔大学（德班）的博士学位（物理学）（2000）。
作为Klydon的创始人兼首席执行官，Strydom博士将他对我们业务的战略和运营机会与挑战、经济和行业趋势以及竞争与财务定位的详细知识和独特视角与见解带入了董事会。
Todd Wider万.D. 自2021年10月以来，Todd Wider一直在我们的董事会任职。Wider博士是Emendo生物治疗公司的执行主席和首席医疗官，该公司专注于高度特异性和差异化的下一代基因编辑。Wider博士曾在ARYA Sciences Acquisition CORP I的董事会任职，该公司于2020年与Immatics N.V. (IMTX)成功进行业务合并。他还担任ARYA Sciences Acquisition CORP II的董事，该公司于2021年与Nautilus Biotechnology (NAUT)成功进行业务合并。他还在ARYA III的董事会任职，该公司于2021年与Cerevel Therapeutics (CERE)成功进行业务合并。他还在ARYA Sciences Acquisition CORP IV和V（ARYD和ARYE）、Abeona Therapeutics Inc. (纳斯达克: ABEO)、Varian Biopharma、Xanadu Bio和Lyfebulb的董事会任职。Wider博士之前与生物技术领域的多个实体进行了咨询。Wider博士是纽约西奈山医院医疗团队的活跃荣誉成员，专注于重建外科工作超过20年。Wider博士获得哥伦比亚医师与外科医生学院的医学博士学位，并曾获得Rudin Fellow称号，从普林斯顿大学获得优等AB学位，并成为Phi Beta Kappa成员。他在哥伦比亚长老会医疗中心完成了普通外科和整形及重建外科的住院医生培训，并在纪念斯隆凯特琳癌症中心的复杂重建外科进行博士后研究，担任首席显微外科研究员，并在迈阿密大学进行颅面外科的博士后研究。Wider博士还是Wider Film Projects的主要合伙人，该公司是一家关注制作具有社会政治共鸣的纪录片的公司，曾获得奥斯卡奖、艾美奖和皮博迪奖。
我们相信，Wider博士由于在多家公司的广泛公共和私人公司董事会经验，拥有在多个领域的知识和经验，包括业务领导、财务和科技，增强了董事会的整体知识、能力和经验。
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| 目录 |
公司治理
我们致力于保持强有力的公司治理实践，以推动董事会在监督角色上的有效运作，促进股东的长期利益，并加强董事会与管理层的问责制。我们的治理实践记录在公司的治理指南中，该指南涉及董事会的角色和组成，以及董事会及其委员会的运作。您可以在我们的网站 www.aspisotopes.com 的「投资者 - 治理 - 委员会章程」和「投资者 - 治理 - 治理文件」下找到我们的治理文件，包括公司的治理指南和我们的业务行为与道德规范。我们的董事会定期审查并更新我们的治理材料，以应对法律和监管要求、不断变化的最佳实践与其他发展。
董事会的独立性
我们的普通股在纳斯达克资本市场上市。根据纳斯达克资本市场的规定，自主董事必须在我们首次公开募股完成后的特定期限内组成上市公司董事会的多数。此外，纳斯达克资本市场的规定要求，按规定的例外情况，上市公司审计、薪酬和提名及公司治理委员会的每位成员必须独立。
审计委员会成员和薪酬委员会成员必须满足《1934年证券交易法》（修订版）第10A-3条和第10C-1条中规定的独立性标准。在纳斯达克全球精选市场的规则下，只有在该公司董事会的意见中，董事才会被视为「独立董事」，该人士没有会妨碍独立判断履行董事职责的关系。
为了符合规则10A-3以及纳斯达克的规定，上市公司审计委员会的成员不得以其作为审计委员会、董事会或任何其他董事会委员会成员的身份，接受来自上市公司或其任何子公司的任何咨询、顾问或其他报酬费用，或成为上市公司或其任何子公司的关联人。
为了符合规则10C-1以及纳斯达克的相关规则，董事会必须明确判断薪酬委员会的每位成员都是独立的，这包括考虑所有与判断该董事是否与公司有重要关系的因素，这些关系可能影响该董事独立于管理层执行薪酬委员会职责的能力，包括但不限于：(i) 该董事的薪酬来源，包括公司支付给该董事的任何咨询、顾问或其他报酬费用；(ii) 该董事是否与公司、公司的子公司或公司子公司的关联方有关联。
我们的董事会已确定，包括迈克尔·戈尔利博士、邓肯·摩尔博士、罗伯特·瑞安和托德·瓦德万博士在内的董事会大多数成员为独立董事。前董事约书亚·多恩费尔德于2024年1月辞去了董事会成员职务，董事会也认定他为独立董事。在作出这一决定时，董事会依据《交易所法》第10A-3条及相关的SEC和纳斯达克规则所规定的标准进行了评估。董事会考虑了所有已知的相关事实和情况，在评估这些董事的独立性时，包括他们当前和历史的雇佣关系、我们给予他们的任何补偿、我们与他们的任何交易、他们对我们资本股票的有益拥有权、他们对我们的控制能力、他们与我们之间的所有其他重要关系，以及他们直系亲属的相同情况。
虽然在确定董事候选人方面没有具体的多样性政策，但提名与公司治理委员会和董事会都寻求对我们在选择董事候选人时最有帮助的人才和背景。特别是提名与公司治理委员会在向我们的董事会推荐董事候选人时，可能会考虑如果当选，董事候选人是否有助于实现一个代表多样性背景和经验的董事会成员组合。
| 9 |
| 目录 |
董事会领导结构
我们的董事会由我们的主席保罗·曼领导。我们的董事会认识到，其关键职责之一是评估并判断其最佳领导结构，以有效监督管理层。我们的公司章程和公司治理指南为我们的董事会提供了将董事会主席和首席执行官的职务合并或分开的灵活性。我们的董事会目前相信，现有的领导结构是有效的，在这种结构下，保罗·曼担任首席执行官，独立董事和非独立董事之间的权力平衡适当，并为我们和我们的股东实现了最佳的治理模式。
董事会在风险监督中的角色
虽然管理层负责我们公司面临的风险的日常管理，但我们的董事会及其委员会在监督管理风险方面发挥着积极作用，并对风险管理的监督负有最终责任。董事会定期审查有关我们的操作、财务、法律、网络安全概念和战略风险的信息。具体而言，高级管理层参加董事会的季度会议，提供有关运营和重大风险的演示，并可随时回答董事会提出的任何问题或关切。
此外，我们的三个常设委员会协助董事会履行其监督职责，关注风险管理。审计委员会协调董事会对我们财务报告、披露控制和程序、关联方交易以及行为规范和公司治理准则的内部控制的监督，管理层定期向审计委员会报告这些领域的情况。薪酬委员会协助董事会履行其在我们薪酬政策和计划以及与首席执行官相关的继任规划方面的监督职责。提名与公司治理委员会协助董事会履行其在董事会组织、成员和结构、董事继任规划及公司治理方面的风险管理监督职责。当任何一个常设委员会收到与重大风险监督相关的报告时，相关委员会的主席会向全体董事会报告讨论情况。
董事会会议
在2023财年，我们的董事会召开了八次会议，包括电话会议。在该年度，每位董事至少参加了(i)他/她担任董事期间我们董事会举行的总会议次数的75%以及(ii)他/她在担任期间所有董事会委员会举行的会议次数的总和。
董事会委员会
我们的董事会设有三个常设委员会：审计委员会、薪酬委员会，以及提名与公司治理委员会，每个委员会的运作均依照我们董事会通过的章程进行。我们的董事会也可以不时建立其他委员会以协助董事会。截至本代理声明之日，所有委员会的组成和运作均符合《豪利法案》、纳斯达克和证券交易委员会的相关规定。每个委员会的章程可在我们网站投资者关系部分的https://investors.aspisotopes.com下的治理栏目中找到。
| 10 |
| 目录 |
审计委员会
我们的审计委员会成员包括Todd Wider、Duncan Moore和Robert Ryan，Dr. Wider担任主席。审计委员会在2023年召开了四次会议。我们的董事会已确定审计委员会的每位成员在财务和审计事务上具有足够的知识，以担任审计委员会成员。我们的董事会已指定Ryan先生为 "审计委员会财务专家"，这一定义符合SEC适用规则。我们的董事会已确定审计委员会的每位成员符合《交易法》第10A节和适用的纳斯达克规则所要求的审计委员会独立性要求。审计委员会的职责包括：
|
| · | 任命、批准独立注册公共会计师事务所的补偿，并评估其独立性； |
|
| · | 预先批准独立注册公共会计师事务所提供的审计和允许的非审计服务及其服务条款； |
|
| · | 与我们独立注册公共会计师事务所及负责编制基本报表的管理层审查整体审计计划； |
|
| · | 与管理层和我们的独立注册公共会计师事务所审查和讨论我们的年度和季度基本报表及相关披露，以及我们使用的关键会计政策和实践； |
|
| · | 协调监督并审查我们对财务报告的内部控制的充分性； |
|
| · | 建立有关会计相关投诉和关注的接收与保留的政策和程序； |
|
| · | 根据审计委员会对管理层及我们的独立注册公共会计师事务所的审查和讨论，推荐我们的审计基本报表是否包含在我们的10-K表格年度报告中； |
|
| · | 监控我们基本报表的完整性，以及我们在与基本报表和会计事务相关的法律和监管要求中的合规性； |
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| · | 准备根据SEC规则要求的审计委员会报告，以纳入我们的年度代理声明； |
|
| · | 审核所有相关人交易以寻找潜在的利益冲突情况，并批准所有此类交易；以及 |
|
| · | 审核季度收益发布。 |
薪酬委员会
我们的薪酬委员会成员是邓肯·摩尔和托德·怀德，摩尔博士担任主席。薪酬委员会在2023年召开了一次会议。我们的董事会已确定每位薪酬委员会成员都符合美国证券交易委员会和纳斯达克规定的「独立」定义，符合《交易法》第10C条及相关的SEC和纳斯达克规则下薪酬委员会的更高独立性要求，并根据《交易法》第160亿.3条规则被视为「非员工董事」。薪酬委员会的职责包括：
|
| · | 审查并批准我们关于首席执行官薪酬的理念、政策和计划； |
|
| · | 向我们的董事会提出关于首席执行官及其他高管薪酬的建议； |
|
| · | 审查和评估薪酬顾问的独立性； |
|
| · | 监督和管理我们的股权激励计划； |
|
| · | 审查并向我们的董事会提出关于董事薪酬的建议；以及 |
|
| · | 准备SEC要求的薪酬委员会报告，包括我们的「高管薪酬」披露。 |
提名与公司治理委员会
我们的提名与公司治理委员会成员包括罗伯特·瑞安、邓肯·摩尔和迈克尔·戈尔利，瑞安先生担任主席。提名与公司治理委员会在2023年召开了一次会议。我们的董事会已确定提名与公司治理委员会的每位成员均符合纳斯达克规则中所定义的「独立」标准。提名与公司治理委员会的职责包括：
|
| · | 制定并向董事会推荐董事及委员会成员的标准； |
|
| · | 建立识别和评估董事会候选人的程序，包括股东推荐的提名人； |
|
| · | 审查董事会的组成，以确保其由具备适当技能和专业知识的成员组成，以便为我们提供建议； |
|
| · | 识别和筛选有资格成为董事会成员的个人； |
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| · | 向董事会推荐提名为董事及每个委员会的人员； |
|
| · | 制定并向董事会推荐一套业务行为和伦理准则以及一套公司治理指南；并 |
|
| · | 监督对我们董事会和管理层的评估。 |
| 11 |
| 目录 |
特别项目委员会
在2023年8月，董事会成立了特别项目委员会，其职责包括研究、评估和协商公司可用的战略机会和替代方案，包括潜在的合资企业、合作及其他关键战略交易，并向董事会提出报告和建议。莫尔博士被任命为特别项目委员会成员。
董事提名程序
提名与公司治理委员会采用以下程序来识别和评估任何推荐或提名给董事会的个人。在对董事候选人的评估中，包括有资格连任的董事会成员，提名与公司治理委员会考虑以下因素：
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| · | 个人资格，包括相关的职业经验、品德强度、判断成熟度、对公司的业务和行业的熟悉度； |
|
| · | 公司的现任董事的经验和专业知识；以及 |
|
| · | 所有其他其认为合适的因素，这可能包括背景多样性、对其他业务的现有承诺、潜在的利益冲突、法律考虑、公司治理背景、财务和会计背景、执行补偿背景以及现有董事会的规模、组成和综合专业知识。 |
董事会在提名和公司治理委员会的协助下，监控其董事的具体经验、资格和技能的组合，以确保董事会整体上具备有效履行监督职能所需的工具，考虑到公司的业务和结构。虽然在确定董事提名人方面没有具体的多样性政策，但提名和公司治理委员会及董事会都在寻找对我们选拔董事提名人最有帮助的人才和背景。特别是提名和公司治理委员会在推荐董事候选人给全体董事会提名时，可能会考虑一位董事候选人如果当选，是否有助于实现董事会成员的多样性背景和经验的组合。公司从未收到过股东的董事提名提案。尽管提名和公司治理委员会并未针对股东提名人制定正式政策，但提名和公司治理委员会预计，股东提名人的评估过程将与上述过程类似。
股东对董事会提名的建议
股东如果希望推荐候选人供提名和公司治理委员会考虑作为董事候选人，必须以书面形式将推荐信发送至ASP Isotopes Inc., 601 Pennsylvania Avenue NW, South Building, Suite 900, Washington, DC 20004, 收件人：公司秘书，并且必须包括候选人的姓名、家庭和商业联系信息、详细的个人资料、相关资格、提名人所持有的我们资本股票的类别和数量、候选人确认愿意担任职务的签名信件、我们与候选人之间的任何关系的信息以及推荐股东拥有我们股票的证据。这份推荐信还必须包括推荐股东对候选人的支持声明，特别是在董事会成员标准的背景下，包括品格、诚信、判断力、经验的多样性、独立性、专业领域、公司经验、潜在的利益冲突、其他承诺等问题、个人推荐及我们的修订和重述章程所要求的其他信息。我们的董事会将考虑该推荐，但没有义务就该推荐采取进一步行动。
| 12 |
| 目录 |
董事出席年度股东大会
尽管我们公司没有关于董事会成员参加年度会议的正式政策，但我们鼓励所有董事出席。所有董事都参加了我们2023年股东年度会议。
与我们的董事会的通信
希望与我们的董事会沟通的股东应将书面意见提交给我们的公司秘书，ASP Isotopes Inc.，地址：601 Pennsylvania Avenue NW, South Building, Suite 900, Washington, DC 20004。公司秘书将把这些通信转发给我们的每位董事；前提是，如果我们的公司秘书认为向特定董事发送某一股东的通信是不合适的，则该通信将仅发送给其余董事（前提是其余董事同意这种意见）。
业务行为操守和道德准则
我们已经采用了一份书面的业务行为和道德规范，适用于我们的董事、高级职员和员工，包括我们的首席执行官、信安金融首席财务官、首席会计官或人形机器人-电机控制器，或执行类似职能的人员。该规范的副本已发布在我们网站的投资者关系部分，网址为www.aspisotopes.com。如果我们对业务行为和道德规范进行任何实质性的修订，或对任何高级职员或董事授予任何豁免，我们将在修订或豁免后的四个工作日内在我们的网站或通过8-K表格的当前报告披露该修订或豁免的性质。
董事薪酬
下表列出了截至2023年12月31日，我们非雇员董事在董事会任职期间所获得的报酬信息。该表不包括我们的执行董事兼首席执行官Mann先生，以及我们的首席科技官Strydom博士，这二位均未因担任董事而获得额外报酬。此外，该表不包括在2024年1月加入董事会的非雇员董事Ryan先生。
| 姓名 |
| 赚取的费用 或支付 以现金 ($) |
|
| 股票 奖项 ($) |
|
| 期权 ($) |
|
| 总计 ($) |
| ||||
| 乔什·唐费尔德(1) |
|
| 60,000 |
|
|
| — |
|
|
| — |
|
|
| 60,000 |
|
| 迈克尔·戈尔利，博士(2) |
|
| 15,000 |
|
|
| — |
|
|
| — |
|
|
| 15,000 |
|
| 邓肯·穆尔，博士(3) |
|
| 60,000 |
|
|
| 244,000 |
|
|
| — |
|
|
| 304,000 |
|
| 谢尔盖·瓦斯涅茨夫(4) |
|
| — |
|
|
| 969,493 |
|
|
| — |
|
|
| 3,568,000 |
|
| Todd Wider万.D. |
|
| 60,000 |
|
|
| — |
|
|
| — |
|
|
| 60,000 |
|
| (1) | 邓菲尔德先生于2024年1月辞去了董事会职务，由瑞安先生接任。 |
| (2) | 戈尔利教授于2023年11月加入董事会。 |
| (3) | 摩尔博士因被任命为董事会特别项目委员会成员，获得了20万股限制性股票的一次性股权奖励，股权将在每六个月等量解禁四次。 |
| (4) | 瓦斯涅佐夫先生2023年的薪酬包括他作为董事和公司顾问的股票奖励。瓦斯涅佐夫先生于2023年11月辞去了董事会职务，由戈尔利教授接任。 |
我们已与目前的非员工董事签订了董事协议，根据该协议，我们同意向每位董事支付每年60,000美元的服务费，该费用可由董事根据自己的意愿以现金或以市场价值的普通股票支付。该费用按季度后付（每季度15,000美元）在董事任期内每年12月、3月、6月和9月的最后一个工作日支付。此外，我们还同意在董事任期内每年授予市场价值为100,000美元的普通股票奖励。作为我们员工的董事将不收取董事会的服务费。
| 13 |
| 目录 |
选举二级董事
根据我们的治理文件，董事会有权通过决议随时设定董事人数。我们目前有六位授权董事在董事会任职，其中三位符合纳斯达克上市标准所定义的「独立」标准。根据我们的公司章程，董事会分为三个等级，采用错开三年的任期。增加或减少董事人数将在三个等级之间分配，以使每个等级的董事人数尽可能接近三分之一。这种董事会的分类可能会延迟或阻止对我们公司的控制权变更。
在年度会议上，将选举两名II类董事，任期三年。根据我们的提名和公司治理委员会的推荐，董事会提名了下列每位董事候选人，由我们的股东进行选举，任期均为三年，直至2027年股东年度会议结束，或到其继任者被正式选举并合格为止。
董事提名人
我们的提名和公司治理委员会已推荐，董事会也已批准，迈克尔·戈尔利博士和邓肯·摩尔博士作为年度会议上第二类董事的候选人。
如果当选，迈克尔·戈尔利博士和邓肯·摩尔博士将担任II类董事，直到2027年股东年会上，或者直到他们的继任者正式当选并具备资格。有关候选人的信息，请参见标题为“董事会和公司治理 — 董事候选人。”
如果您是记录在案的股东并投票，但不对董事的投票提供指示，则您的股份将被投票支持迈克尔·戈尔利博士和邓肯·摩尔博士的选举。我们预计迈克尔·戈尔利博士和邓肯·摩尔博士将接受这样的提名；然而，如果在年度会议时某位提名人无法或拒绝担任董事，则代理人将投票支持由我们的董事会指定的任何提名人以填补该空缺。如果您是我们普通股的实际拥有者，并且没有向您的经纪人、银行或其他提名人提供投票指示，那么您的经纪人、银行或其他提名人将不对该事项投票。
所需投票
第II类董事的选举需要在年度会议上亲自或通过代理出席并有投票权的普通股股份达到多数票才能通过。弃权、"不支持"的票以及经纪人不投票的情况对该提案没有影响。
我们的董事会一致推荐投票「支持」选举由我们董事会提名并在本代理声明中列为二级董事的董事，任期三年。
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量子飞跃能源公司批准
2024年股权激励计划，经过修订
公司的股东被要求批准Quantum Leap Energy LLC 2024年股权激励计划的修订版（我们在本提案中称之为QLE股权计划）。QLE股权计划旨在激励为Quantum Leap Energy LLC（「QLE」），公司的全资子公司，提供服务的人员，以鼓励他们为实现QLE的公司目标和宗旨所做的贡献。QLE股权计划于2024年2月首次通过，并于2024年9月由QLE管理委员会和公司董事会修订，并得到了公司作为QLE的唯一成员的批准。
股东应该仔细阅读本代理声明的全部内容，以获取有关批准QLE股权计划的提案的更详细信息。此外，股东可以参阅QLE股权计划的完整文本，该文本附在本代理声明后。 附录 A 对QLE股权计划的任何摘要都应以QLE股权计划的全文为准。
Quantum Leap 能源 有限责任公司
QLE于2023年9月成立，作为公司的全资子公司，专注于先进核燃料的开发和商业化，如高浓缩低富集铀（HALEU）和锂-6。虽然无法保证，但公司计划将QLE剥离为一家独立的上市公司，在美国国家交易所上市QLE的股份，并在未来待定的记录日期向ASPI的股东分配部分QLE的普通股，具体情况须获得相关批准和同意，并遵守相关的规则、法规及公共市场交易和上市要求。
概述
我们在一个充满挑战的市场中运作，成功在很大程度上取决于我们吸引和留住最高素质的员工、董事和其他服务提供者的能力。我们的董事会认为，解决这些挑战的关键工具之一是一个具有竞争力的股权激励计划。我们的股权激励计划提供了一系列激励工具和足够的灵活性，使董事会薪酬委员会能够以最有效的方式利用股东授权用于激励目的的股份。QLE 股权计划的目的是通过向为 QLE 提供服务的人员（包括 QLE 的员工、官员、董事/经理和顾问，可能同时也是公司的员工、官员、董事和顾问）提供 QLE 的股权利益，以促进 QLE、公司及其股东的利益，鼓励他们加入并继续服务于公司和/或 QLE，获取 QLE 长期成功的所有权利益，并奖励个人在实现长期公司目标方面的表现。
公司不需要提交QLE股权计划以获得公司股东的批准，但出于良好的公司治理，决定这样做。纳斯达克证券市场上市规则并不要求子公司的股权补偿计划获得上市公司股东的批准，该计划授权仅基于子公司的普通股权授予股权奖励，因为在子公司的股权补偿计划下，无法发行上市公司股权证券的股票。QLE股权计划已获得QLE管理委员会、公司的董事会和公司作为QLE的唯一成员的批准。然而，负责设计和管理公司的高管薪酬计划的薪酬委员会重视股东表达的意见，并将在未来的薪酬决策中考虑投票结果。
QLE股权计划的摘要描述
以下关于QLE股权计划的摘要由QLE股权计划的具体语言完全限定，其副本附在本代理声明中，作为 附录 A 本代理声明的内容。为了本摘要的目的，对「股份」的引用应指QLE的普通股或单位（视情况而定），对「董事会」的引用应指QLE管理委员会（如果QLE当时为公司，则指董事会），对「薪酬委员会」的引用应指QLE董事会的薪酬委员会。
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一般 - QLE股权计划的目的是通过提供激励计划，促进QLE和公司的利益，以吸引和留住员工、顾问和董事，并为他们提供在QLE的增长和盈利能力中的股权利益。这些激励可能通过授予股票期权、股权增值权、限制性股票购买权、限制性股票奖金、限制性股票单位、财报股票、财报单位以及其他基于股份的奖励和基于现金的奖励来提供。
获授权股份 - 根据QLE股权计划，授权发行的股份总数的最大上限为被视为已发行的普通股的百分之十五（15%）（将公司的QLE会员权益及2024年2月和6月发行的可转换票据转化后的普通股股份或单位视为已发行）。此外，QLE股权计划还限制根据该计划授予的激励股票期权行使时可发行的股份数量。
分享计数 - 如果根据QLE股权计划授予的任何奖励因任何原因过期或其他原因终止而未被完全行使或结算，或者如果被QLE没收或回购的股票未超过参与者的购买价格，则任何此类重新获取的股份或属于已终止奖励的股份将再次可用于根据QLE股权计划发行。
根据QLE股权计划，股份将不会被视为已发行，因此在现金结算的情况下不会减少可发行股份的数量。因行使选项或股票增值权的结算而被QLE扣留或回购以满足税务扣除义务的股份，不能用于QLE股权计划下的新奖励。在行使股票增值权或净行使选项时，QLE股权计划下可用股份的数量仅会减少所行使奖励的净股份数量。
资本结构变化的调整 -如果我们的普通股在没有收到QLE对价的情况下发生任何变动，无论是通过合并、合并、重组、资本重组、重新分类、股票分红、股票分割、反向股票拆分、拆分、股份合并、股票交换或类似形式，都将对QLE股票计划授权的股票数量和未付奖励进行适当和成比例的调整我们的资本结构发生变化，或者我们是否向股东进行分配对我们普通股的公允市场价值有重大影响的普通股（不包括定期的现金分红）以外的形式。在这种情况下，薪酬委员会还有权根据QLE股权计划酌情调整未付奖励的其他条款。
非员工董事奖限制 - 所有基于股权的奖励的授权日期公允价值总和以及作为非员工董事的服务提供者所获得的任何现金补偿不得超过每个日历年度600,000美元（或在非员工董事被任命或选为QLE董事会的第一年不得超过1,000,000美元）。
管理 - QLE股权计划通常由薪酬委员会管理，尽管董事会保留任命其其他委员会来管理QLE股权计划或直接管理QLE股权计划的权利。在遵循QLE股权计划条款的前提下，薪酬委员会自行决定授予奖项的对象和时间、奖项的类型和大小，以及其所有条款和条件。薪酬委员会可以，除非QLE股权计划另有规定，修改、取消或续期任何奖项，放弃适用于任何奖项的任何限制或条件，以及加速、继续、延长或推迟任何奖项的归属。
QLE股权计划规定，在某些限制的前提下，QLE将对任何董事、官员或员工因其在实施QLE股权计划中的行为或未采取行动而引发的任何法律行动所产生的所有合理费用，包括律师费，进行赔偿。所有根据QLE股权计划授予的奖励将通过QLE与参与者之间的书面或数字签名协议进行证明，该协议应规定奖励的条款和条件，并符合QLE股权计划的要求。薪酬委员会将解释QLE股权计划及其下授予的奖励，薪酬委员会的所有决定一般将对所有对QLE股权计划或任何奖励有权益的人具有最终和约束力。
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期权和 SAR 重新定价 -QLE股权计划规定，薪酬委员会有权批准一项在水下期权或股票增值权方面规定以下内容的计划：（1）取消此类未偿还期权或股票增值权以换取授予涵盖相同或不同数量股票的新期权或股票增值权，但行使价等于新授予日的公允市场价值，或未决案的修正案期权或股票增值权，在修订日将行使价降至公允市场价值；（2）发行新的全额奖励以换取取消此类未偿还期权或股票增值权，或（3）取消此类未偿还期权或股票增值权以换取现金支付。
资格 - 奖励可以授予QLE或公司或QLE目前或未来的母公司、子公司或其他相关实体的员工、董事和顾问。激励性股票期权只能授予在授予时，即为QLE或公司或QLE的任何母公司或子公司的员工。
期权 - 薪酬委员会可以授予非法定股票期权、根据《法典》第422条意义上的激励股票期权，或这两者的任何组合。每个期权的行使价格不得低于授予日期我们普通股公允市场价值的100%。但是，授予在授予时拥有QLE或公司或公司任何母公司或子公司所有类别股票总投票权超过10%的股份的人（「10%股东」）的任何激励股票期权，其行使价格必须至少等于授予日期普通股公允市场价值的110%。
QLE股票权益计划规定，期权行使价格可以通过现金、支票或现金等价物支付，或者在薪酬委员会允许的情况下，通过经纪人协助的无现金行使方式；通过净行使程序；在法律允许的范围内，通过向QLE投标参与者拥有的、公允市场价值不低于行使价格的股份；通过薪酬委员会批准的其他合法对价；或上述任何方式的组合。尽管如此，薪酬委员会可以限制与任何期权授予相关的付款形式。除非参与者为联邦、州、地方和外国税收（如有）做好充分准备，否则不得行使任何期权，包括在QLE允许或要求的情况下，通过参与者向QLE交出部分期权股份。
期权将在补偿委员会规定的时间、事件以及条件、条款、绩效标准或限制下生效并可以行使。根据QLE股权计划授予的任何期权的最长期限为十年，前提是授予10%股东的激励股票期权的期限不得超过五年。除非补偿委员会另有许可，期权一般将在参与者服务终止后持续可行使三个月，但如果服务是因为参与者的死亡或残疾而终止，期权一般将在12个月内保持可行使，但无论如何期权必须在到期日之前行使，并且进一步规定，期权将在参与者因故被解雇时立即终止（根据QLE股权计划的定义）或如果参与者在终止后从事任何构成原因的行为，在任何期权通常仍然可以行使的期间内。
期权在参与者生前只能由参与者自己行使，除了遗嘱或法定继承之外，参与者不得转让。此外，期权可以在薪酬委员会允许的范围内进行分配或转让，并在适用的奖励协议中明确规定。对于激励性股票期权，只有在转让不会导致其税收资格终止的情况下，才允许进行这样的分配或转让。
股票增值权 - 补偿委员会可以授予股票增值权，既可以与相关期权一起授予（「并行SAR」），也可以独立于任何期权授予（「独立SAR」）。并行SAR要求期权持有者在行使基础期权以获得股份或放弃期权并行使相关股票增值权之间做出选择。并行SAR仅在相关股票期权可行使时行使，且仅在可行使的范围内，而独立SAR可在根据补偿委员会指定的时间、事件及其他条款、条件、绩效标准或限制行使。每个股票增值权的行使价格不得低于授予日我们普通股的公允市场价值的100%。
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在行使任何股票增值权时，参与者有权获得在行使权利的基础股份的公平市场价值与该股份的总行使价格之间的差额。行使串联增值权时，该金额的支付仅能以在行使日期公平市场价值等于支付金额的股份进行支付。根据薪酬委员会的裁量权，行使独立增值权时，该金额的支付可以以现金或股份进行支付。在QLE股权计划下授予的任何股票增值权的最长有效期为十年。
股票增值权通常不可由参与者转让，除非是遗嘱或法律允许的继承和分配，并且通常只能由参与者在其生存期间行使。如果薪酬委员会允许，相关于非法定股票期权的并行股票增值权和独立股票增值权可以根据薪酬委员会的许可转让给某些家庭成员或信托，以便于他们的利益，该内容应在适用的奖励协议中规定。股票增值权的其他条款通常与可比股票期权的条款相似。
限制性股票奖励 - 酬劳委员会可以根据QLE股权计划授予限制性股票奖励，既可以是限制性股票购买权，赋予参与者立即购买普通股的权利，也可以是限制性股票奖金，以股票作为对参与者为QLE提供服务的补偿。酬劳委员会决定限制性股票购买奖励的购买价格，该价格可能低于我们普通股当时的公平市场价值。限制性股票奖励可能会受到酬劳委员会所规定的基于服务或绩效标准的归属条件，包括达到与绩效奖金相关的一个或多个绩效目标的要求。根据限制性股票奖励获得的股份，在归属之前，参与者不得转让。除非酬劳委员会另有规定，（i）参与者将会失去在限制性股票奖金中获得的任何股份，前提是归属限制在参与者服务终止之前尚未解除；（ii）QLE将有权以参与者所支付的购买价格，从参与者处回购任何根据限制性股票购买权获得的限制性股票，前提是归属限制在参与者服务终止之前尚未解除。除非酬劳委员会另有决定，持有限制性股票的参与者将有权投票并接受任何支付的分红派息，不过在适用的限制性股票归属之前，分红派息可能不会支付。
限制性股票单位 - 补偿委员会可以根据QLE权益计划授予限制性股票单位（RSUs），这些单位代表在未来的某个日期，根据参与者的奖励协议领取我们普通股的权利。获取RSUs或因奖励而发行的股票无需支付现金，作为对参与者为QLE提供服务的对价。补偿委员会可以授予有限制性条件的RSU奖励，这些条件基于补偿委员会规定的服务或财报标准，并在适用的奖励协议中列明。除非补偿委员会另有规定，否则参与者在服务终止前未归属的任何RSUs将被没收。参与者在普通股发行以结算此类奖励之前，未享有投票权或现金分红权。然而，补偿委员会可以授予RSUs，使其持有者有权获得相等于QLE支付的任何现金分红的现金或额外RSUs的分红等价权。分红等价权可能在RSUs上累积，但在适用的奖励归属之前，不可支付。
财报奖励 - 薪酬委员会可以根据书面确定的条件和在参与者与QLE之间的书面协议中规定的绩效目标的达成情况，授予绩效奖励。这些奖励可以被指定为绩效股份或绩效单位，这些绩效股份或绩效单位通常由未融资的记账条目组成，其初始价值在绩效股份的情况下等于授予日期时普通股的公平市场价值，而在绩效单位的情况下则由薪酬委员会在授予时确定的货币价值。每份绩效奖励协议将指定在预定的绩效期间内，参与者可以获得的绩效股份或绩效单位的预定数量，前提是一个或多个绩效目标得到达成。在获得的范围内，绩效奖励可以以现金、普通股（包括受额外归属限制的限制性股票）或这些的任意组合方式结算。
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薪酬委员会可以根据其裁量，基于一个或多个客观或主观的业务、财务或个人绩效指标，或薪酬委员会设定的其他绩效标准来确定绩效目标。关于绩效指标的目标水平可以以绝对值或者相对于薪酬委员会指定的指数、预算或其他标准来表示。在绩效奖励的核算或支付之前，将根据一般公认会计原则（GAAP）（如果适用）或委员会在授予绩效奖励之前制定的任何其他方法计算绩效指标的达成程度，排除在设定适用于绩效奖励的绩效目标之后发生的会计标准变化的影响（无论是正面还是负面）或任何不寻常或不常发生的事件或交易的影响。
补偿委员会可以自行决定，为获奖的绩效股份参与者提供与我们的普通股现金分红相对应的分红派息权益，前提是这些绩效股份已取得并且不可被没收。补偿委员会可以选择一次性支付或分期支付绩效奖励。
在适用的财报周期结束之前，财报奖励不能通过遗嘱或依法处置以外的方式转让或出售。
现金为基础的奖励和其他股票为基础的奖励 - 补偿委员会可以根据其决定授予现金基础奖励或其他以股票为基础的奖励，其金额和条款及条件由补偿委员会确定。现金基础奖励将指定货币支付或支付区间，而其他以股票为基础的奖励将指定基于股票或其他股权相关奖励的股份或单位数量。这些奖励可能需遵循基于持续服务表现的归属条件或需达到一个或多个类似于上述绩效奖励的绩效目标。奖励的结算可以以现金、其他财产或普通股股票进行，由补偿委员会决定。参与者在未根据奖励发行股份之前，将不享有与该奖励相关的投票权。补偿委员会可以就其他以股票为基础的奖励授予股息等值权利。股息等值可能在以股票为基础的奖励上累积，但在适用奖励归属之前，不得支付。
与期权或SARs相关的股息等价物不支付。参与者服务终止对此类奖励的影响将由薪酬委员会确定，并在参与者的奖励协议中列明。
控件的变更 - 除非在参与者与QLE的奖励或其他协议中另有定义，否则QLE股权计划提供「控制权变更」的一般情况是：(a) 某个人或实体（根据QLE股权计划中描述的某些例外情况）直接或间接拥有QLE投票股票超过50%的表决权或公平市场价值；(b) 股东批准QLE的清算或解散；或(c) 发生以下事件，在这些事件中，事件发生前QLE的股东在事件发生后并未直接或间接保留超过50% QLE、其继承者或公司资产转移到的实体的投票证券的合并表决权：(i) 股东在单一交易或相关交易系列中出售或交换超过QLE投票股票合并表决权的50%；(ii) QLE作为一方的合并或整合；或(iii) QLE全部或几乎全部资产的出售、交换或转让（不包括对QLE一个或多个子公司的出售、交换或转让）。
QLE股权计划并未规定在控制权变更时自动触发单一加速，除了非雇员董事持有的奖励之外。如果发生控制权变更，存续的、继续的、继任的或购买的实体或其母公司可以选择假定或继续现有的奖励，或为其股票替代实质上等同的奖励。如果补偿委员会决定，基于股票的奖励将在控制权变更之前，对于每份授予的每一股被视为已被假定，前提是其持有者被赋予权利，以收到控制权变更所导致的与股东将收到的相同金额的补偿。与控制权变更没有被假定、继续或替代的任何奖励，或在控制权变更完成之前未被行使的奖励，将在控制权变更完成时终止，并不再有效。补偿委员会可以采取其认为适当的行动，以加速每项或任何未行使奖励或其部分及因此获得的股票的行使权、归属和/或结算，且包括在控制权变更之前、期间或之后终止参与者服务的条件。根据我们的董事薪酬计划，所有非雇员董事持有的奖励将在控制权变更时完全加速生效。
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根据《法典》第409A节的奖金 - 根据QLE股权计划授予的某些奖励可能被视为「递延薪酬」，这符合《法典》第409A节的定义，该节规定了非合格递延薪酬计划的税收规则，以及依据第409A节发布的法规和其他行政指导。任何此类奖励都必须遵守第409A节的要求。尽管QLE股权计划有任何相反的规定，薪酬委员会被授权自行决定，并且无需任何参与者的同意，修改QLE股权计划或任何奖励协议，以确保符合第409A节的要求。
修改、暂停或终止 -QLE股权计划将持续有效，直到薪酬委员会终止为止，前提是QLE股票计划生效十周年（即股东批准之日）之后，不得根据QLE股权计划发放任何奖励。薪酬委员会可以随时修改、暂停或终止QLE股票计划，前提是未经股东批准不得进行任何修改，以增加根据QLE股票计划授权发行的最大股票总数，更改有资格获得激励性股票期权的人员类别或根据任何适用法律要求股东批准。除非薪酬委员会明确规定，否则QLE股权计划的任何修订、暂停或终止均不得影响任何未付的奖励，并且在任何情况下，除非遵守任何适用的法律、法规或规则，包括但不限于《守则》第409A条，否则未经参与者同意，不得对未偿奖励产生重大不利影响。
扣 withholding - 作为发行或交付股票或根据任何奖励的行使或限制失效支付其他补偿的控件，QLE要求参与者履行所有适用的预扣税义务。参与者持有或将要发行的股票可以用于满足法定的税款预扣义务，预扣税率最高可达适用的法定预扣税率。
美国联邦所得税后果摘要 以下总结仅作为对参与QLE股权计划的美国联邦所得税后果的总体指南，并不试图描述参与的所有可能的联邦或其他税务后果，也不考虑特定情况的税务后果。
期权激励计划 参与者因根据《税法》第422条授予或行使激励性股票期权而不承认任何应税收入。参与者如果在期权授予之日起两年内，或者在期权行使之日起一年内未处置其股份，则在出售股份时通常会确认一个资本收益或损失，金额等于出售价格与购买价格之间的差额（如果有的话）。如果参与者在出售股份时满足该持有期，我们将无权就联邦所得税目的享有任何扣除。如果参与者在授予日期之后两年内或在行使日期之后一年内处置股份（称为「失效处置」），那么股份在期权行使日的公允市场价值与行使价格之间的差额（不得超过在处置交易中实现的收益，如果发生损失将被确认）将在处置时作为普通收入征税。超出该金额的任何收益将视为资本收益。如果确认了损失，则不会有普通收入，并且该损失将为资本损失。参与者在股份失效处置时确认的任何普通收入通常应由我们按联邦所得税目的扣除，除非该扣除受到《税法》适用条款的限制。
一般来说，激励股票期权的行使价格与行使当天股票的公允市场价值之间的差额被视为计算参与者的替代最低应税收入时的调整，并可能需要支付替代最低税，前提是该税超过该年的常规税收。对于某些由于不合格处置而导致的股票后续销售，可能适用特殊规则，用于计算股票后续销售的替代最低应税收入的某些基础调整，以及可能与受替代最低税影响的参与者相关的某些税收抵免。
非法定股票期权 - 未指定或不符合激励股票期权资格的期权为非法定股票期权，且没有特殊的税务地位。参与者通常在收到此类期权时不承认应纳税收入。在行使非法定股票期权时，参与者通常会认定普通收入，金额等于支付的行使价与行使日期时股票的公平市场价值之间的差额。如果参与者是员工，则此类普通收入通常需扣缴所得税和就业税。在因行使非法定股票期权而获得的股票出售时，任何基于出售价格与行使日期时股份的公平市场价值之间的差额的收益或损失，将作为资本收益或损失征税。我们通常应有权获得与参与者因行使非法定股票期权而确认的普通收入金额相等的税收扣除，除非这种扣除受到《法典》适用条款的限制。
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股票增值权 参与者在获得股票增值权时不承认应纳税收入。在行使股票增值权时，参与者通常会确认普通收入，其金额等于行使日标的普通股的公允市场价值与行使价格之间的差额。如果参与者是员工，这种普通收入通常需扣缴所得税和就业税。我们一般有权扣除参与者在行使股票增值权时确认的普通收入金额，但前提是该扣除受《税法》适用条款的限制。
限制性股票 - 参与者获取限制性股票通常会承认的普通收入等于在「确定日期」时股票的公平市场价值超过支付价格（如有）的部分。「确定日期」是参与者获取股票的日期，除非这些股票面临重大失效风险且不可转让，在这种情况下，确定日期为以下两个日期中的最早者：(i) 股票变得可转让的日期或 (ii) 股票不再面临重大失效风险的日期（例如，当它们归属时）。如果确定日期在参与者获得股票的日期之后，参与者可以根据《美国法典》第83(b)条的规定，通过向国税局提交选举，在获取日期指定确定日期，提交的时间不得晚于获取股票后30天。如果参与者是员工，这种普通收入通常需扣缴所得税和就业税。在根据限制性股票奖励出售股票时，基于销售价格与确定日期股票的公平市场价值之间的差额的任何收益或损失，将按资本收益或损失征税。一般来说，我们应有权扣除参与者在确定日期承认的普通收入的金额，除非该扣除受到《美国法典》适用条款的限制。
限制性股票单位、财报、现金基础及其他基于股票的奖励 - 参与者通常在授予RSU、财报股票、PSU、现金基础或其他基于股票的奖励时不会确认任何收入。在这些奖励结算时，参与者通常会在结算的年度确认普通收入，金额等于所收到的现金和所收到的股票的公允市场价值。如果参与者是员工，则该普通收入通常需扣缴所得税和就业税。任何进一步的收益或损失将被视为资本收益或损失。我们通常有权扣除参与者在确定日期确认的普通收入金额，除非该扣除受到适用的法规限制。
对公司的税务影响 – 通常情况下，公司的确应该在参与者确认补偿收入时有权进行扣除。
新计划福利
根据薪酬委员会的决定，公司、QLE或公司任何其他子公司的高管、员工或顾问，或公司、QLE或公司任何其他子公司的非员工董事在QLE股权计划下实际可获得的奖励数量（如果有的话）无法提前确定。
所需投票
在会议上，亲自到场或通过代理出现并有权投票的股东中，绝大多数投票权的肯定票将被要求批准Quantum Leap Energy LLC 2024年股权激励计划的修改。弃权的投票将与对该提案投「反对」票的效果相同。经纪人未投票不会影响投票结果。
根据纳斯达克证券市场上市规则，公司不需要向公司股东提交QLE股权计划以获得批准，但作为良好公司治理的举措，公司仍然提交了该计划。QLE股权计划已经获得QLE管理委员会、公司董事会和作为QLE唯一成员的公司批准。然而，负责设计和实施公司的高管薪酬计划的薪酬委员会重视股东表达的意见，并在未来的薪酬决策中会考虑投票结果。
我们董事会一致推荐投票「赞成」批准量子飞跃能源有限责任公司2024年股权激励计划的修订。
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任命的批准
独立注册公共会计公司
审计委员会已选择EisnerAmper LLP（「EisnerAmper」）作为公司截至2024年12月31日的独立注册公共会计师，并进一步指示管理层在年度股东大会上提交独立注册公共会计师的任命供股东确认。EisnerAmper自2021年起一直担任公司的审计师，并审计了截至2023年12月31日的公司的基本报表。EisnerAmper的代表预计将出席年度大会，如果他们愿意，将有机会发表声明，并将可用来回答适当的问题。
根据特拉华州法律、公司的修订和重述的公司章程，或公司的修订和重述的章程，股东对EisnerAmper作为公司独立注册公共会计师的任命并不需要确认。然而，审计委员会将把EisnerAmper的任命提交股东确认，以作为良好公司治理的惯例。如果股东未能确认该任命，审计委员会将重新考虑是否保留该公司。即使任命得到确认，审计委员会在其自由裁量权下，仍可在任何时间再次指派不同的独立注册公共会计师，如果审计委员会认为这种变更对公司及其股东的利益最佳。
独立注册公共会计师费用
下表总结了EisnerAmper对公司在截至2023年和2022年12月31日的财政年度提供的专业服务收取的费用。
|
|
| 2023 |
|
| 2022 |
| ||
| 审计费用(1) |
| $ | 252,000 |
|
| $ | 243,607 |
|
| 审计相关费用 |
|
| — |
|
|
| — |
|
| 税务费用(2) |
|
| — |
|
|
| — |
|
| 所有其他费用 |
|
| — |
|
|
| — |
|
| 总计 |
| $ | 252,000 |
|
| $ | 243,607 |
|
(1) 审计费用包括审计、审查以及与提交S-1表格相关的工作，包括发出同意书和确认函。
(2) 税费与税务合规和顾问服务相关。
预审批政策和程序
我们的审计委员会已建立政策，所有由我们独立注册公共会计公司提供的审计和可允许的非审计服务都需经过审计委员会的预先批准，并且在截至2023年12月31日和2022年12月31日的财政年度内，所有此类服务均根据该政策获得了预先批准。这些服务可能包括审计服务、审计相关服务、税务服务和其他服务。审计委员会会考虑每项非审计服务的提供是否与维持我们审计师的独立性相兼容。预先批准的内容细化到具体的服务或服务类别，并通常受特定预算的限制。我们的独立注册公共会计公司和管理层需要定期向审计委员会报告根据该预先批准提供的服务范围，以及迄今为止执行服务的费用。
需要投票；董事会的建议
在会议上，出席的股东或代表股东的代理人所持有的投票权的多数同意票将被要求以确认任命EisnerAmper。弃权将与对该提案的投票「反对」具有相同的效果。由于确认EisnerAmper LLP的任命被视为一种例行事项，且经纪人或其他提名人具有投票的自主权，因此此提案可能不会导致经纪人无投票。
我们的董事会一致建议股东投票以确认任命EisnerAmper为我们截至2024年12月31日的独立注册公共会计事务所。由董事会征集的代理投票将按此进行，除非股东另有说明。
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董事会审计委员会的报告
审计委员会代表公司的董事会监督公司的财务报告过程。管理层对基本报表和报告过程承担主要责任，包括内部控制系统。在履行其监督职责时，审计委员会与管理层审阅并讨论了截至2023年12月31日的财政年度的经审计基本报表，包括对会计原则选择或应用的任何重大变化的讨论、重大判断的合理性、基本报表披露的清晰度以及任何新的会计措施的影响。
审计委员会与EisnerAmper进行了审查，该公司负责就公司的经过审计的基本报表与公认会计原则的一致性发表意见，以及其对公司会计原则的质量（不仅仅是可接受性）的判断，以及根据公认审计标准和适用的公共公司会计监督委员会（「PCAOB」）和美国证券交易委员会（SEC）的要求需要与审计委员会讨论的其他事项。此外，审计委员会还与EisnerAmper讨论了其与管理层和公司的独立性，并收到了EisnerAmper根据PCAOB的适用要求提供的书面披露和信函，关于EisnerAmper与审计委员会就独立性问题的通信，并考虑了非审计服务与审计师独立性的兼容性。
审计委员会与EisnerAmper会面，讨论其服务的整体范围、审计和审查的结果、对公司的内部控制的评估以及公司的财务报告的整体质量。EisnerAmper作为公司的独立注册公共会计师事务所，还定期向审计委员会更新新的会计发展及其对公司报告的潜在影响。审计委员会与EisnerAmper的会议有时在管理层在场的情况下举行，有时则不在场。审计委员会不是公司的雇员，也不提供任何关于公司基本报表的专家保证或专业认证。
审计委员会在没有独立验证的情况下，依赖管理层和公司独立注册公共会计师提供的信息的准确性和完整性，以及所作的陈述。
基于上述的审查和讨论，审计委员会向公司的董事会推荐将公司的经审计基本报表纳入公司截至2023年12月31日向SEC提交的10-K年度报告中。审计委员会和公司的董事会还建议，在股东批准的情况下，批准EisnerAmper被任命为公司2024年的独立注册公共会计师事务所。
本审计委员会的报告不属于「招揽材料」，不应被视为已向美国证券交易委员会（SEC）「提交」，也不应通过任何将本代理声明引用纳入1933年修订证券法或1934年修订证券交易法的文件中的一般声明而被引入， 无论是在本文件日期之前还是之后，并且无论该文件中是否包含任何一般性合并语言，除非我们特意将此信息引用并纳入，否则不应被视为根据上述法案提交。
前述报告由审计委员会提供。
|
| 由董事会审计委员会提交 |
|
|
| Todd Wider万.D. (主席) |
|
|
| 邓肯·穆尔，博士 |
|
|
| 罗伯特·瑞安 |
|
| 23 |
| 目录 |
下表列出了截至2024年9月23日我们普通股的实益拥有权信息：
|
| · | 每个个人或我们已知的持有超过5%我们流通普通股的关联人士； |
|
| · | 我们的每位董事； |
|
| · | 我们的每位指定高管；以及 |
|
| · | 所有董事和高管作为一个整体。 |
每个实体、个人、董事或高管实益拥有的股份数量是根据SEC的规则确定的，这些信息不一定表明用于其他目的的实益拥有权。根据这些规则，实益拥有权包括个人拥有单独或共同投票权或投资权的任何股份，以及个人有权在2024年9月23日后60天内通过行使任何股票期权、Warrants或其他权利或限制性股票单位的归属而获得的任何股份。除非另有指明，并依据适用的社区财产法，表中所列的人员对该人员持有的所有普通股拥有独立的投票和投资权。
截至2024年9月23日，所持有的股份百分比是根据我们普通股在外流通的68,409,116股计算的。权利持有者在2024年9月23日后60天内可以获取的我们普通股股份在计算该权利持有者的持股百分比时被视为在外流通，但在计算其他任何人的持股百分比时不被视为在外流通，除了关于所有董事和高管的持股百分比总和。除非以下有其他说明，每位受益所有人的地址均为：ASP Isotopes Inc.，601 Pennsylvania Avenue NW，South Building，Suite 900，Washington，DC 20004。
| 受益所有人姓名和地址 |
| 股份数量 有利于 拥有 |
|
| 百分比 受益股份 拥有(1) |
| ||
| 5%及以上的股东 |
|
|
|
|
|
| ||
| AK Jensen投资管理有限公司 (2) |
|
| 6,566,874 |
|
|
| 9.6 | % |
| 谢尔盖·瓦兹涅索夫 (3) |
|
| 3,838,607 |
|
|
| 5.6 | % |
| 指定的高管和董事 |
|
|
|
|
|
|
|
|
| 保罗·曼 (4) |
|
| 7,858,268 |
|
|
| 11.3 | % |
| 海瑟·基斯林 (5) |
|
| 412,500 |
|
| * |
| |
| 罗伯特·安斯考 (6) |
|
| 1,492,446 |
|
|
| 2.2 | % |
| 亨德里克·斯特里多博士 (7) |
|
| 2,514,240 |
|
|
| 3.7 | % |
| 迈克尔·戈尔利博士 |
|
| 101,838 |
|
| * |
| |
| 邓肯·摩尔，博士（8） |
|
| 950,167 |
|
|
| 1.4 | % |
| 罗伯特·瑞安 |
|
| 572,102 |
|
| ** |
| |
| 托德·威德，医学博士（9） |
|
| 736,708 |
|
|
| 1.1 | % |
| 所有当前的执行官和董事总计（8人）（10） |
|
| 14,665,269 |
|
|
| 21.4 | % |
| 24 |
| 目录 |
* 不到百分之一。
| (1) | 拥有百分比是根据截至2024年9月23日我们流通在外的68,409,116股普通股计算的。 |
| (2) | 根据2024年8月5日向美国证券交易委员会提交的第四份表格，报告截至2024年8月2日的股票所有权。这些证券由Tees River Critical Resources Fund或其他基金和账户（"AK Jensen Funds"）直接持有，AK Jensen Investment Management Limited（"AK Jensen"）担任投资经理。Anders K. Jensen（"Jensen先生"）和Duncan P. Saville（"Saville先生"）可能被视为间接控制AK Jensen。除非在其对证券的经济利益程度内，AK Jensen及Jensen先生和Saville先生声明放弃对这些证券的受益所有权。AK Jensen的地址是23 Berkeley Square, London, W1J 6HE。 |
| (3) | 包含(i)由Elista LLC持有的1,000,000股，(ii)2021年10月我们授予ChemBridges LLC的600,000股受限普通股，按季度在一年内归属并受限，(iii)2022年7月我们授予ChemBridges LLC的600,000股受限普通股，按季度在一年内归属，(iv)2022年11月15日我们授予ChemBridges LLC的600,000股普通股奖励，按四年归属，(v)2022年12月30日我们授予ChemBridges LLC的500,000股普通股奖励，按一年归属，以及(vi)2023年3月1日我们授予ChemBridges LLC的538,607股普通股奖励，按一年归属。Vasnetsov先生对Elista LLC持有的证券具有投票和处置权，Elista LLC的地址是P.O. Box 2291, Toa Baja 00951 Puerto Rico，作为Eliona Trust（一个家庭信托和Elista LLC的所有者）的托管人。Vasnetsov先生对ChemBridges LLC持有的证券也具有投票和处置权，ChemBridges LLC的地址是P.O. Box 2291, Toa Baja 00951 Puerto Rico，作为ChemBridges LLC的总裁和所有者。 |
| (4) | 包含(i)Mann先生持有的1,550,000股普通股，(ii)我们在2021年10月授予Mann先生的1,500,000股基于财报的受限普通股，(iii)在我们首次公开募股中购买的37,500股普通股，(iv)我们在2022年11月15日授予Mann先生的1,000,000股受限股份，按四年归属，(v)我们在2022年12月30日授予Mann先生的1,000,000股普通股奖励，按一年归属，(vi)我们在2023年3月1日授予Mann先生的718,143股普通股奖励，按一年归属，(vii)在2024年7月通过我们承销的公开发行中购买的39,984股普通股，(viii)我们在2024年9月6日授予Mann先生的978,466股普通股奖励，按一年期的四次等额分期归属，从2024年3月1日开始，以及(ix)Mann先生持有的在2024年9月23日60天内可行使的期权下发行的1,034,175股普通股。 |
| (5) | 包括(i) 12,500股由基斯林女士持有的普通股，以及(ii) 2024年7月1日我们授予基斯林女士的400,000股普通股，此股权在赠予日期的六个月纪念日开始的四年内分八等份半年度归属。 |
| (6) | 包括(i) 250,000股由艾因斯考先生持有的普通股，(ii) 2022年11月15日我们授予艾因斯考先生的600,000股普通股，此股权在四年内归属，(iii) 2022年12月30日我们授予艾因斯考先生的50,000股限制性普通股，此股权在一年内归属，(iv) 19,992股普通股在2024年7月我们发行的公开募股中购买， (v) 2024年9月6日我们授予艾因斯考先生的300,000股限制性普通股，此股权在赠予日期开始的四年内每季度平等归属， (vi) 272,454股普通股可在2024年9月23日内行使由艾因斯考先生持有的期权。 |
| (7) | 包括(i) 由Tianne Holdings (Pty) Ltd持有的2,097,474股，其地址为布伦梅里亚，前托里亚，0184，CSIR校园46号楼。斯特里东博士拥有对这些股份的表决和处置权，(ii) 2022年11月15日我们授予斯特里东先生的200,000股限制性普通股，此股权在两年内归属，以及(iii) 216,816股普通股可在2024年9月23日内行使由斯特里东博士持有的期权。 |
| (8) | 包括(i) 454,167股由摩尔博士持有的普通股，(ii) 2022年11月15日我们授予摩尔博士的200,000股限制性普通股，此股权在两年内归属，(iii) 2023年8月16日我们授予摩尔博士的200,000股普通股，以及(iv) 96,000股普通股可在2024年9月23日内行使由摩尔博士持有的期权。 |
| (9) | 包括(i) 294,844股由维德博士持有的普通股，(ii) 2022年11月15日我们授予维德博士的200,000股限制性普通股，此股权在两年内归属，(iii) 2024年8月13日我们授予维德博士的172,864股普通股，以及(iv) 96,000股普通股可在2024年9月23日内行使由维德博士持有的期权。 |
| (10) | 包括上述第4、5、6、7、8和9条中的股票。 |
| 25 |
| 目录 |
我们的执行官
下表列出了截至2024年9月23日我们执行官的信息：
|
姓名 |
|
年龄 |
|
职位 |
| 保罗·E·曼 |
| 48 |
| 董事会主席兼首席执行官 |
| 希瑟·基斯林 |
| 60 |
| 首席财务官 |
| 亨德里克·斯特里登，博士。 |
| 63 |
| 首席技术官和董事 |
| 罗伯特·艾因斯考 |
| 47 |
| 首席运营官 |
保罗·E·曼. 请参阅上文中“部分提供的传记信息董事会及公司治理.”
亨德里克·斯特里登，博士. 请查看上述“董事会及公司治理.”
希瑟·基斯林. 基斯林女士自2024年7月起担任我们公司的首席财务官。在加入我们公司之前，她曾担任Danforth Advisors LLC的董事总经理，该公司是一家生命科学金融策略咨询公司，并自2015年10月以来担任顾问。在Danforth Advisors，自2021年11月起，基斯林女士根据公司与Danforth Advisors的咨询协议为公司提供咨询和顾问服务。在加入Danforth Advisors之前，基斯林女士在Cytonome/ST, LLC和AutoImmune Inc.担任财务领导职务。基斯林女士是一名注册会计师，拥有加利福尼亚大学圣迭戈分校管理科学学士学位，以及密歇根大学商学院金融和会计方向的MBA学位。
罗伯特·艾因斯考. 艾因斯科先生是我们公司的共同创始人，自公司成立以来担任多个职位。艾因斯科先生自2024年4月以来担任我们的首席运营官，并在2022年9月至2024年7月我们的首席财务官上任之前担任首席财务官或临时首席财务官。艾因斯科先生还在2021年9月至2022年9月期间担任我们的副总裁和业务发展负责人。在ASP Isotopes之前，罗伯特于2017年10月至2021年2月担任Zenzic Partners Limited的资本市场负责人，并自2015年11月以来创办了Bluezest Mortgages。罗伯特在通过提供结构融资和证券化结构在债务资本市场融资运营公司和贷款平台方面拥有超过20年的经验。他开发、执行并管理了创新的结构，以资助信用、可再生能源和运输及物流资产，涉及所有主要金融司法管辖区，包括境内和境外。罗伯特的职业生涯始于第一家互联网银行First-E，在投资银行部门WIT-Soundview工作。经过「.com」修正后，他进入了美国摩根士丹利和贝尔斯登在伦敦的主流投资银行，担任法律部门的分析师，负责资本市场监管，并在本金和资产支持融资小组担任副总裁，分别负责证券化。此后，他在接下来的几年中两次在Investec银行工作，并担任多项董事职务、顾问和投资于初创和增长阶段的贷款及证券化平台。
| 26 |
| 目录 |
补偿决策的流程和程序
我们的薪酬委员会负责我们高管的薪酬计划，并向我们的董事会报告其讨论、决定和其他行动。通常，我们的首席执行官会向薪酬委员会提出建议，通常会参加委员会会议，并参与确定向其汇报的各个高管的薪酬，但首席执行官不对自己的薪酬提出建议。我们的首席执行官会基于我们的财报、各个高管对这些财报的贡献及其个人目标的实现情况，向薪酬委员会提出关于所有高管（不包括他自己）的短期和长期薪酬的建议。然后，我们的薪酬委员会审核建议及其他数据，并决定每位高管的总薪酬，以及每个单独的薪酬组成部分。我们的薪酬委员会审核并批准，或向董事会的独立成员建议批准每位高管的薪酬，包括我们的首席执行官。
我们的薪酬委员会被授权根据需要聘用一名或多名高管薪酬顾问，以协助建立我们的薪酬方案和相关政策。
我们2023年的指定高级管理人员，包括我们的首席执行官和另外两位薪酬最高的高管如下：
|
| · | 保罗·曼，我们的执行主席兼首席执行官； |
|
| · | 亨德里克·斯特里登，博士，我们的首席科技官；以及 |
|
| · | 罗伯特·安斯考，我们的首席运营官（前首席财务官）。 |
2023年总结薪酬表
下表列出了截至2023年和2022年12月31日，我们命名的高管的薪酬信息。
| 姓名和主要职位 |
|
|
| 薪水 ($) |
|
| 奖金 ($)(2) |
|
| 股票 奖励（$）(3) |
|
| 期权 奖励（$）(3) |
|
| 非股权 激励计划薪酬 ($) |
|
| 所有其他的报酬 ($) |
|
| 总计（$） |
| |||||||
| 保罗·曼 执行主席兼首席执行官 |
| 2023 |
|
| 480,000 |
|
|
| — |
|
|
| 1,292,657 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,772,657 |
|
|
|
| 2022 |
|
| 260,000 |
|
|
| — |
|
|
| 4,210,000 |
|
|
| 1,429,007 |
|
|
| — |
|
|
| — |
|
|
| 5,899,007 |
|
| 亨德里克·斯特里多姆博士 首席科技官 |
| 2023 |
|
| 122,400 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 122,400 |
|
|
|
| 2022 |
|
| 240,000 |
|
|
| — |
|
|
| 526,000 |
|
|
| 312,486 |
|
|
| — |
|
|
| — |
|
|
| 1,078,486 |
|
| 罗伯特·安斯考 首席运营官（前首席财务官）(1) |
| 2023 |
|
| 159,996 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 159,996 |
|
|
|
| 2022 |
|
| 133,333 |
|
|
| — |
|
|
| 1,657,000 |
|
|
| 173,070 |
|
|
| — |
|
|
| — |
|
|
| 1,963,403 |
|
| (1) | 安斯考先生自2024年7月1日起 ceased 担任我们的首席财务官，此时基斯林女士加入公司。 |
| (2) | 2024年4月5日，董事会认可曼先生和安斯考先生在2023年对公司的贡献，在薪酬委员会的建议下，批准了2023年的酌情现金奖金，分别为44万美元和9万美元。 |
| (3) | 根据SEC规则，这些列反映了2022年和2023年授予的限制性股票奖励的总授予日公允价值。该金额的计算遵循财务会计准则委员会（FASB）的会计标准分类（ASC）主题718。用于计算该金额的假设在我们审计的合并基本报表的第2注释中有所描述。该金额并未反映受赠人在股票奖励归属或销售相关普通股时实际实现的经济价值。 |
| 27 |
| 目录 |
就业安排
以下是我们与指定的高管在2023财年的就业协议描述，包括有关解雇补偿和在与我们的指定高管的安排中，因终止雇佣关系和/或控制权变化而提供的其他福利的讨论。此外，下面是我们与赫瑟·基斯林（Heather Kiessling）的就业协议描述，她是我们的首席财务官，并于2024年7月1日起加入公司。
保罗·曼
我们于2021年10月与曼先生签署了一份执行就业协议，该协议于2022年12月和2024年4月进行了修订，规定了他作为执行董事长和首席执行官的当前雇佣条款。根据协议，曼先生的基本年薪为520,000美元（需董事会进行年度调整），目标年度酌情奖金相当于其年度基本薪资的100%，以及根据营业收入里程碑的达成情况，以我们普通股的股份支付的里程碑奖金。年度奖金将以现金和普通股的混合形式支付，具体由薪酬委员会决定。
在我们实现每月平均营业收入达到416.7万美元的情况下，曼先生将获得100万美元的奖金。在我们实现每月平均营业收入达到833万美元的情况下，曼先生将获得额外的100万美元奖金。在我们实现每月平均营业收入达到1250万美元的情况下，曼先生将获得额外的100万美元奖金。在我们实现每月平均营业收入达到1667万美元的情况下，曼先生将获得额外的100万美元奖金。任何基于里程碑的已获奖金将在达到相关营业收入目标的30天内支付，并且发给曼先生的已兑现股份的数量应通过将100万美元的奖金金额除以董事会根据善意确定的普通股的当时公允市场价值，或者普通股在适用付款日前一个交易日的收盘销售价格（由普通股的主要交易市场报告）来确定。
在他任职期间，Mann先生将获得相当于公司截至上一财年的已发行普通股的百分之二（2%）的股权奖励，该奖励将于每年的3月1日授予，并在12个月内按季度归属。
曼先生的雇佣协议经过修订后，初始期限为五年，将于2029年4月5日结束，除非任一方在当前期限到期前至少三个月通知不续约，否则将自动续期为连续的一年。曼先生根据其雇佣协议的条款也有权享有某些离职补偿福利。
在曼先生因任何原因终止雇佣关系时，曼先生有权获得终止年度的按比例计算的年终奖金。
在曼先生因其他原因终止雇佣关系（除非是由于他无正当理由的自愿辞职且不与控制权变更相关）的情况下，曼先生将继续领取其基本工资，直至当时适用的剩余雇佣期结束，并在最多18个月的期间内报销COBRA保险费用。
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如果曼先生因去世、残疾、无故解雇、因正当理由辞职或因控制权变更辞职而终止雇佣关系，曼先生持有的所有股权奖励的归属和行使权将立即加速，以便所有这些股权奖励将在其终止之日完全归属并可行使。此外，在这种终止情况下，曼先生的股票期权（以及任何其他可行使的股权奖励）将继续可行使，直到曼先生终止后的一年或股权奖励的原最大允许期限中的较早者。
如果曼先生因任何原因终止雇佣，非因自愿辞职且理由充分，并且未发生在控制权变更的情况下，曼先生将继续获得基础薪水支付，直到适用的剩余雇佣期限的结束，并将在最多18个月的期间内报销COBRA保险费。
罗伯特·艾因斯科
我们于2021年10月与罗伯特·安斯考签订了一份高管雇佣协议，根据该协议，他被任命为副总裁兼业务发展负责人。我们于2022年9月对安斯考先生的雇佣协议进行了修订，以配合他担任临时首席财务官的任命，并在2024年4月进行了修订，以配合他担任首席运营官和首席财务官的任命。根据（经修订的）协议，安斯考先生有权获得每年360,000美元的基本工资（受董事会年度调整的影响），目标年度酌情奖金相当于其年度基本工资的40%，以及基于营业收入里程碑达到情况而支付的以我们普通股形式的里程碑奖金。年度奖金将以现金和普通股的混合形式支付，具体由薪酬委员会决定。
爱因斯科先生的雇佣协议经修订后，初始期限为三年，至2027年4月5日结束，除非任一方在当期合同到期前至少三个月通知不再续约，否则将自动续约为连续的一年期。爱因斯科先生根据他的雇佣协议也有权获得某些离职福利。
在Ainscow先生因任何原因终止雇佣关系时，除了因自愿辞职且无正当理由，并且不与控制权变更相关的情况下，Ainscow先生将获得最长18个月的COBRA保费报销。
如果Ainscow先生的雇佣关系因去世、残疾、无缘由解雇、合理原因辞职或因控制权变更辞职而终止，则Ainscow先生持有的所有股权奖励的归属和行使权将立即加速，使所有这些股权奖励在他终止的日期完全归属并可行使。此外，在此类终止时，Ainscow先生的期权（以及任何其他可行使的股权奖励）将继续可行使，直至Ainscow先生终止后的第一年或股权奖励的最初允许的最长期限中较早的时间为止。
亨里克·斯特里多姆。
我们于2022年1月与Henrik Strydom签署了一份高管雇佣协议，根据该协议，他被任命为执行副总裁兼首席科技官。根据协议，Strydom先生的初始年薪为240,000美元（当公司生产出250克商业产品时，将增加至480,000美元），目标年终奖金为其年基本工资的100%，以及基于营业收入里程碑达成情况以股份形式支付的阶段性奖金。年度奖金将以现金和普通股的组合形式支付，具体由薪酬委员会决定。
在我们实现平均月营业收入为416.7万美元的条件下，Strydom先生将获得25万美元的奖金。在我们实现平均月营业收入为833万美元的条件下，Strydom先生将获得额外的25万美元奖金。在我们实现平均月营业收入为1250万美元的条件下，Strydom先生将获得额外的25万美元奖金。在我们实现平均月营业收入为1667万美元的条件下，Strydom先生将获得额外的25万美元奖金。任何根据里程碑获得的奖金将在实现相关营业收入目标后的30天内支付，向Strydom先生颁发的已归属股份数量将通过将25万美元奖金金额除以董事会根据诚信判断的普通股每股公平市场价值，或在适用支付日前的交易日关闭时的普通股销售价格（由普通股的主要交易市场报告）来确定。
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斯特里登先生的雇佣协议初始期限为一年，除非任一方提供终止通知，否则将自动续约为连续的一年。斯特里登先生根据他的雇佣协议还享有某些遣散福利。
在斯特里登先生因任何理由终止雇佣关系的情况下，除非是因他无正当理由自愿辞职，并且这种情况并未发生在控制权变更的情况下，斯特里登先生将获得长达18个月的COBRA保险费用报销。
如果斯特里登先生因去世、残疾、无故解雇、因正当理由辞职或由于控制权变更而辞职，则他的雇佣关系终止后，所有由斯特里登先生持有的股权奖励的归属和行权将立即加速，使所有这些股权奖励在他终止雇佣关系之日即完全归属并可行使。此外，在此类终止之后，斯特里登先生的期权（以及任何其他可行使的股权奖励）将保持可行使状态，直到斯特里登先生终止雇佣关系后的一年或股权奖励的原最大允许期限两者中的较早者。
希瑟·基斯林.
我们于2024年6月与Heather Kiessling签署了一份执行雇佣协议，任命她为首席财务官，任命自2024年7月1日起生效。根据协议，Kiessling女士的初始年薪为400,000美元（每年根据董事会的决定进行调整），此外，她有权获得相当于其年薪50%的年度目标自愿奖金。年度奖金将以现金和普通股票的混合形式支付，具体由薪酬委员会决定。雇佣协议还规定，Kiessling女士将根据公司的2024年诱导性股票激励计划获得40万股限制性股票的初始授予，该股票将在过渡日期六个月周年开始后的四年内按八个相等的半年期分期授予（须符合适用的授予条件）。这40万股限制性股票的授予是为了诱使Kiessling女士成为公司的员工，符合纳斯达克上市规则5635(c)(4)。Kiessling女士还将符合根据公司的2022年股票激励计划获得年度股权奖励的资格。
Kiessling女士的雇佣协议初始期限为一年，除非任一方在当前期限到期前至少三个月通知不续约，否则将自动续约为连续的一年期。Kiessling女士还根据她的雇佣协议享有一定的离职福利。
如果基斯林女士的雇佣关系因除自愿辞职（且没有正当理由）以外的任何原因被终止，并且此终止与控制权变更无关，艾因斯考先生将获得最长18个月的COBRA保费报销。
如果基斯林女士因去世、残疾或在初始一年期结束后无故解雇、因正当理由辞职或因控制权变更辞职而终止雇佣关系，则她所持所有股权奖励的归属和可行使性将立即加速，因此在她终止雇佣关系的日期，所有这些股权奖励将完全归属并可行使。此外，基斯林女士持有的任何股票期权（以及任何其他可行使的股权奖励）将在基斯林女士终止雇佣关系后的一年内或股权奖励的原始最大允许期限之前继续可行使。
首席执行官 2023年的限制性股票奖励。
2023年3月1日，我们根据Mann先生的雇佣协议授予他限制性股票。该股票的归属基于时间，没有进一步的绩效标准。Mann先生获得了718,143股限制性普通股（即公司截至前一个财年的流通普通股的2%）。这些限制性股票奖励将在2023年6月1日、2023年9月1日、2023年12月1日和2024年3月1日各归属25%。
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健康福利
我们为符合条件的员工提供常规员工福利，包括我们的NEO，包含医疗、牙科和视力福利，开空和开多残疾保险，基本和补充人寿保险以及基本和补充意外死亡及肢体残疾保险。
非合格延迟补偿
我们不维持非合格定义贡献计划或其他非合格延迟补偿计划。
特权
我们通常不向我们的高级管理人员提供额外的福利或个人待遇。
财政年度结束后的补偿措施
如上所述，首席执行官和首席运营官有资格根据各自的雇佣协议条款获得年度奖金，该奖金的金额以及是否以现金或股票（或现金与股票的混合）支付，将由董事会根据薪酬委员会的建议自行决定。 2024年4月5日，鉴于保罗·曼和罗伯特·安斯考在2023年对公司的贡献，董事会根据薪酬委员会的建议，批准了2023年的酌情现金奖金，分别为440,000美元和90,000美元。
此外，2024年4月5日，董事会批准了与曼先生、阿因斯考先生和斯特里登博士的雇佣协议的修订。由于对他们各自雇佣协议的修订，曼先生被任命为执行主席兼首席执行官，阿因斯考先生被任命为首席运营官兼首席财务官；曼先生、阿因斯考先生和斯特里登博士的基本工资分别提高至520,000美元、360,000美元和180,000美元。
在2024年9月6日，我们根据与曼先生的雇佣协议条款授予了限制性股票。曼先生获得了978,466股限制性普通股（即公司截至前一个财政年度的流通普通股的2%），这些股票将在2024年6月1日、2024年9月1日、2024年12月1日和2025年3月1日的每个日期分别有25%的归属。此外，在2024年9月6日，我们还向艾因斯考先生授予了限制性股票的可酌情授予。艾因斯考先生获得了300,000股限制性普通股，这些股票将根据授予日期起的四年期间，每季度平等分期归属，前提是他在每个归属日期仍持续为我们服务。
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截至2023年12月31日的杰出股权奖励
下表列出了截至2023年12月31日，我们的指定高管持有的未行使期权奖励的信息。
| 期权奖励(1) | 股票奖励(1) | ||||||||||||||||||||||||||||||||||||||||||
| 姓名 | 授予日期 | 数量 证券 基础 未行权 期权（#） 可行权 | 数量 证券 基础 未行权 期权（#） 不可行使 | 期权 行使 价格 ($)(2) | 期权 到期 日期 | 数量 股份或 单位 股票 尚未 归属数量 (#) | 市场 价值 股份或 单位 股票 尚未归属 未 归属数量 ($)(3) | ||||||||||||||||||||||||||||||||||||
| 保罗·曼 | 10/4/2021 | — | — | — | — | 1,500,000 | 2,685,000 | ||||||||||||||||||||||||||||||||||||
| 4/4/2022 | 216,000 | (4) | — | 2.00 | 4/4/2032 | — | — | ||||||||||||||||||||||||||||||||||||
| 6/10/2022 | 519,578 | (5) | 480,422 | 2.00 | 6/10/2032 | — | — | ||||||||||||||||||||||||||||||||||||
| 11/15/2022 | — | — | — | — | 750,000 | 1,342,500 | |||||||||||||||||||||||||||||||||||||
| 12/30/2022 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| 3/1/2023 | — | — | — | — | 179,535 | 321,368 | |||||||||||||||||||||||||||||||||||||
| 亨德里克·斯特里登，博士。 | 6/10/2022 | 137,688 | (5) | 127,312 | 2.00 | 6/10/2034 | — | — | |||||||||||||||||||||||||||||||||||
| 11/15/2022 | — | — | — | — | 100,000 | 179,000 | |||||||||||||||||||||||||||||||||||||
| 罗伯特·艾因斯考 | 10/4/2021 | 112,043 | (5) | 37,957 | 0.25 | 4/4/2034 | — | — | |||||||||||||||||||||||||||||||||||
| 4/4/2022 | 12,000 | (4) | — | 2.00 | 4/4/2034 | — | — | ||||||||||||||||||||||||||||||||||||
| 6/10/2022 | 70,143 | (5) | 64,857 | 2.00 | 6/10/2034 | — | — | ||||||||||||||||||||||||||||||||||||
| 11/15/2022 | — | — | — | — | 450,000 | 805,500 | |||||||||||||||||||||||||||||||||||||
| (1) | 在公司2022年11月首次公开募股之前授予的期权和股票奖励是根据我们的2021年股票激励计划授予的，此后授予的期权和股票奖励是根据我们的2022年股权激励计划授予的。 |
| (2) | 所有的期权奖励的每股行使价格均等于授予日期我们普通股的公允市场价值，由董事会或薪酬委员会善意确定。 |
| (3) | 截至2023年12月31日，依据2023年最后一个交易日2023年12月29日我们普通股收盘市场价格每股1.79美元，代表未归属限制性股票的公允市场价值。 |
| (4) | 期权将在授予日期后12个月以单次形式变为可行使。 |
| (5) | 期权分36期等额月度归属，从授予日期后的下个月最后一天开始，前提是接收人在每个归属日期之前与我们的持续服务。 |
对冲和质押禁令
作为我们内部交易政策的一部分，我们的员工（包括我们的执行官）和董事会的非员工成员被禁止交易公开交易的期权，例如看跌期权和看涨期权，以及与我们证券相关的其他衍生证券。这包括任何旨在降低持有我们普通股的风险的对冲或类似交易。
此外，我们的员工（包括我们的高管）和董事会的非员工成员不得在保证金、押金账户中持有我们的普通股或将我们的证券质押作为贷款的担保。
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根据股权补偿计划授权发行的证券
下表提供了截至2023年12月31日的关于我们普通股的可发行股份的信息，这些股份可能是在我们现有的股权补偿计划下行使期权时发行的：
| 计划类别 |
| 数量 根据期权、Warrants 和权利发行的证券 根据期权、Warrants 和权利发行的证券 根据期权、Warrants 和权利发行的证券 未偿还的 期权，Warrants 和权利 |
|
| 加权平均 行使价格为 未偿还的 期权，Warrants 和权利 |
|
| 数量 证券 剩余 可用于未来 根据发行 权益 薪酬 计划（不包括 在（a）栏中反映的安防 ） |
| |||
|
|
| (a) |
|
| (b) |
|
| (c) |
| |||
| 由证券持有人批准的股权补偿计划 |
|
| 2,766,000 | (1) |
| $ | 1.91 | (2) |
|
| 488,606 | (3) |
| 未获得安防持有者批准的股权补偿计划(4) |
|
| — |
|
|
| — |
|
|
| — |
|
| 总计 |
|
| 2,766,000 |
|
| $ | 1.91 |
|
|
| 488,606 |
|
| (1) | 代表可以通过行使待授予的股票期权获得的2,766,000股普通股，每个单位在持有人授予期内解锁时，持有人将获得一股普通股。 |
| (2) | 加权平均行使价格仅基于待授予的股票期权计算，不包括未行使的限制性股票单位，因为它们没有行使价格。 |
| (3) | 包括在公司2022年股权激励计划（2022计划）下可用于未来发行的普通股。2022计划规定，在2023年开始的每个财政年度的第一天，2022计划可发行的股份数量将增加，增加数量为：（i）截至前一年的12月31日已发行和流通的普通股的5%，或（ii）由我们的董事会确定的数量。因此，在2024年1月1日，2022计划下可用股份数量增加了2,446,164股。 |
| (4) | 在2024年6月，我们的董事会通过了2024年诱导股权激励计划，计划中我们为公司普通股保留了2,500,000股。根据纳斯达克市场规则5635(c)(4)，不需要股东批准2024年诱导股权激励计划。2024年诱导股权激励计划提供股票期权、股票增值权、限制性股票、限制性股票单位、财报奖励（包括财报股份或财报单位）及其他现金或股票奖励，仅向之前不是公司员工或董事的个人（或经过真实的非就业期后）发放，这些奖励是对个人加入公司就业的重大诱因。2024年诱导股权激励计划下的奖励条款与2022年股权激励计划的条款基本相似，包括在企业交易或控制权变更时对奖励的处理。 |
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除了” 中描述的补偿协议和其他安排高管薪酬” 本招股说明书的部分和下述交易，自2023年1月1日以来，我们过去或将要参与的任何交易或一系列类似交易中涉及的金额超过或将超过120,000美元，并且任何董事、执行官、持有任何类别股本5％或以上的任何一方或其直系亲属的任何成员，或者与上述任何人有关联的实体拥有或将要拥有直接或间接的重大利益。
我们与Klydon专有有限公司（「Klydon」）的关系
亨德里克·斯特里登博士是我们的一位董事，他曾共同创办并担任Klydon的执行董事长兼首席执行官。斯特里登博士通过同位素分离科技有限公司（Isotope Separation Technology (Pty) Ltd），一个由罗南德博士和斯特里登博士共同拥有的公司，成为Klydon的控股股东，该公司是Klydon的最大股东。
独占Mo-100许可证(由新许可证取代（请参见下面的「综合Klydon许可证」）)。2021年9月30日，我们的子公司ASP Isotopes南非（私人）有限公司（「ASP南非」）作为被许可方，与Klydon作为许可方签署了一项许可证，根据该许可证，ASP南非从Klydon获得了独占使用、转包和再许可某些与ASP科技相关的知识产权的许可，以开发和/或以其他方式处置ASP科技及利用ASP科技生产、分销、营销和销售Mo-100同位素（根据2022年6月8日的修订，称为「Mo-100许可证」）。通过Mo-100许可证授予我们的知识产权包括与ASP科技相关的Klydon的所有现有和/或未来的专有权利，无论这些权利是否已注册，包括版权、设计、专有技术、专利和商标（尽管Klydon目前没有这样的专利、专利申请或版权）。独占Mo-100许可证是免版税的，有效期为999年，并面向全球发展ASP科技及生产Mo-100同位素，同时面向全球分销、营销和销售Mo-100同位素。与Mo-100许可证没有任何预付款或其他付款已支付或欠款。Klydon有权在被许可方停止进行Mo-100富集活动超过24个月的情况下终止Mo-100许可证的独占性。Klydon没有其他终止Mo-100许可证的权利。自2022年7月26日起，各方同意终止Mo-100许可证，该许可证已被一项新许可证协议取代（详见下面的「综合Klydon许可证」）。
独占U-235许可证(已被新的许可证取代（见下文「全能Klydon许可证」）。2022年1月25日，ASP南非作为被许可方，与Klydon作为许可方签订了一项许可证，依据该许可证，ASP南非从Klydon获得了对与ASP科技相关的某些知识产权的独占使用、分包和再许可权，以开发和/或以其他方式处置ASP技术以及使用ASP生产、分销、营销和销售的U-235（根据修订后的内容，「U-235许可证」）。独占U-235许可证用于ASP科技的全球开发和U-235的生产，并且在U-235的分销、营销和销售上也是全球范围内的。与U-235许可证相关，我们支付了10万美元的预付款，并同意支付某些特许权使用费（每公斤U-235的特许权使用费至少为50美元或利润的10%）以及我们可能收到的任何再许可现金对价的33%的再许可营业收入分享。如果被许可方在连续24个月以上停止进行U-235浓缩活动，Klydon有权终止U-235许可证的独占性。Klydon没有其他终止U-235许可证的权利。自2022年7月26日起，双方同意终止U-235许可证，该许可证已被新的许可证协议取代（在下文「全能Klydon许可证」标题下描述）。
全能Klydon许可证。 在2022年7月26日，ASP Isotopes UK Ltd作为被许可方，与Klydon作为许可方签订了一份许可协议，根据该协议，ASP Isotopes UK Ltd从Klydon获取了使用、开发、修改、改进、分包和再许可与ASP科技相关的某些知识产权的独占许可证，以用于生产、分销、市场营销和销售所有使用ASP科技生产的同位素（「Klydon许可协议」）。通过Klydon许可协议授予我们的知识产权包括与ASP科技相关的Klydon现有和/或未来的所有专有权利，无论这些权利是否已注册，包括版权、设计、专有技术、专利和商标（尽管Klydon目前没有此类专利、专利申请或版权）。Klydon许可协议取代了上述提到的Mo-100许可证和U-235许可证。Klydon许可协议是免版税的，有效期为999年，适用于ASP科技的开发和同位素的分销、市场营销和销售。未来的同位素生产仅限于核供应国集团的成员国。关于Klydon许可协议，我们同意支付$100,000的预付款（包括在我们根据下面描述的交钥匙合同所支付的款项中）和在24个月内支付$300,000的递延款项。如果被许可方在连续24个月内停止进行与同位素浓缩相关的活动，Klydon有权终止Klydon许可协议的独占性。
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交钥匙合同。在2021年11月1日，ASP南非和Klydon作为承包商签订了一份合同，Klydon被任命为ASP南非提供完整的钼-100富集工厂（以下简称「交钥匙合同」）。Klydon将进行或履行的活动包括：控制在钼业务拯救拍卖中获得的资产；设计一个钼-100富集设施，其目标制造能力为每年20千克，富集程度在95%以上；提供每年20千克所需的元件、设备和劳动力；安装、测试和调试钼富集工厂，包括生产供客户在回旋加速器中使用的靶材；确保获得工厂运营所需的所有批准、监管授权和其他必要的同意；为当地的ASP Isotopes南非（有限公司）人员提供培训，以使其能够继续操作工厂；并提供与工厂的性能目标相关的保证，这些目标必须达到。Klydon将负责与相关南非当局沟通，包括南非防扩散委员会、核供应国集团和国际原子能机构，以确保交钥匙合同和钼-100富集工厂遵循国际法律和指南。根据交钥匙合同，ASP Isotopes南非（有限公司）需支付的费用最高为1280万美元，分以下几个阶段进行： (1) 在初步概念证明阶段支付680万美元（该阶段将在第一次生产Mo-100时结束）； (2) 通过模块化施工增加生产能力支付600万美元（从预计的初始生产能力每年5千克提升至每年20千克的95%富集钼-100）。截至2023年6月30日和2022年12月31日，根据此合同已支付约723.3万美元，并记录为在建工程，属于不动产和设备。
Klydon部分完成了交钥匙合同项下要求的服务；然而，服务并不完整，并且许多服务未在规定的时间内完成。因此，Klydon和ASP南非于2022年11月30日签订了一份债务确认协议，根据该协议，Klydon(i)同意将其资产（「质押资产」）抵押给ASP南非，以确保其在2022年12月31日前履行交钥匙合同，(ii)确认如果未能履行，ASP南非将遭受605万美元（「损害金额」）的损失。在债务确认协议项下，质押资产将作为Klydon在未能履行的情况下支付损害金额的担保。与此相关，2022年11月30日，ASP南非与Klydon签订了一份安防协议，如果Klydon未能在2022年12月31日前完成其在交钥匙合同项下的义务，Klydon对质押资产的任何权利和利益将转移给ASP南非。Klydon未能在2022年12月31日前完成其在交钥匙合同项下的义务，然而，该公司直到2023年4月4日才完善其对资产的权益。
债务确认协议。 在2023年4月4日，公司根据债务确认协议完善了其权益，根据该协议，公司从Klydon收购了某些知识产权（「Klydon和解」）。此外，公司还收购了Klydon在四个非活动实体中的权益，这些实体正在解散过程中。与Klydon和解相关，公司记录了额外实收资本的增加，用于结清和解时欠Klydon的所有负债，总计为626,223美元。
收购硅-28工厂资产。 2022年7月26日，我们以6,000,000南非兰特（当时汇率约为364,000美元）从Klydon收购了包括一个闲置的硅-28空气动力分离加工厂的资产，该款项将在收购后180天或资产产生任何性质的收入之日支付给Klydon，以较后者为准。
与罗南德博士的首席科学顾问协议。 在2022年1月，我们与艾纳尔·罗南德博士签订了一项协议，他同意担任董事会的首席科学顾问，每季度支付50,000美元。该协议的初始期限为一年，将自动续期为连续的一年，除非任何一方提供终止通知。
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与斯特里多姆博士和罗南德博士的咨询协议。 在2022年1月，我们与担任董事会首席科学顾问的埃纳尔·罗南德博士以及我们的董事之一亨德里克·斯特里多姆博士签订了咨询协议，依据该协议，罗南德博士和斯特里多姆博士同意协助我们开发用于铀浓缩的ASP科技，并可能形成与铀浓缩相关的许可交易。此外，罗南德博士还同意协助我们获得公司运营所需的所有监管审批和许可证。咨询协议没有预付款或定期付款，但在与任何与铀浓缩相关的许可交易中，公司收到许可预付款的情况下，向顾问提供现金付款，顾问的现金付款金额将基于接收任何此类许可预付款的日期来确定：在3个月内收到的任何许可预付款的25%将支付给顾问（公司保留75%），在3至9个月内收到的任何许可预付款的15%将支付给顾问（公司保留85%），在9个月后收到的任何许可预付款的5%将支付给顾问（公司保留95%）。咨询协议没有固定期限，但任何一方可以在（i）提前30天书面通知另一方的情况下，无理由终止咨询协议，或（ii）如果另一方违反协议（如果该违反行为可以修复，则需提供10天的修复期限），则可立即书面通知另一方，终止咨询协议。
与Ronander博士和Strydom博士的赔偿安排。 与Einar Ronander博士和Hendrik Strydom博士在2022年1月签订的其他协议相关，我们已同意对Ronander博士和Strydom博士进行赔偿，涵盖任何和所有损失、损害、债务、不足、索赔、诉讼、判决、和解、利息、奖励、罚款、费用或任何类型的开支，包括由受赔偿人产生的专业费用和合理的律师费用，这些都是由于与第三方债权人相关的任何索赔而产生的，涉及第三方债权人与Klydon、Einar博士和Strydom博士于2012年5月签订的协议，以及与Klydon和Isotope Separation Technology (Pty) Ltd（Klydon的最大股东，由Ronander博士和Strydom博士拥有）相关的，特别是与(i) 第三方债权人将Isotope Separation Technology (Pty) Ltd的股份出售给Ronander博士和Strydom博士有关，以及(ii) Klydon对Isotope Separation Technology (Pty) Ltd和第三方债权人所欠某些贷款义务的确认及该贷款义务的还款条款。我们根据与Ronander博士和Strydom博士的信函协议所承担的赔偿义务的最高总责任为3,200,000美元（约为可能欠第三方债权人的金额）。我们知道第三方债权人可能会因Klydon未能按照2012年5月协议偿还某些贷款义务而提出索赔，但尚未提出或威胁任何此类索赔或诉讼。我们不认为Klydon、Isotope Separation Technology (Pty) Ltd或任何其他第三方有义务就任何此类索赔提供赔偿。我们不认为我们与Ronander博士和Strydom博士的赔偿安排下的任何付款义务目前是可能的。
与ChemBridges LLC的顾问协议
我们已与ChemBridges LLC签订了日期为2021年10月27日的顾问协议。我们的一位前董事Sergey Vasnetsov于2023年11月辞去了董事职务，并由Gorley教授接任，他是ChemBridges LLC的总裁和所有者。根据顾问协议，ChemBridges LLC同意就广泛的商业活动和全球业务目标的关键策略执行提供主题专业知识，包括但不限于战略咨询、并购、研发、内生增长、运营优化、商业卓越、投资者关系和公司治理。根据顾问协议的补偿包括（i）初始授予60万股限制性普通股，分三年每年解禁一次，以及（ii）在顾问协议首个周年之后的前8个日历季度每个季度授予价值为40,000美元的普通股（每年总计160,000美元）。我们在2022年7月与顾问协议的修订中发行了60万股限制性普通股，分四个季度在一年内解禁。任一方可在提前180天书面通知的情况下终止顾问协议。我们可以因协议的重大违反而终止顾问协议，如果在两周书面通知后未能纠正。除偿还任何未报销费用和根据协议有效日期的股权奖励按比例解禁外，协议终止后我们对顾问将不再承担任何义务。
2022年12月12日，公司与ChemBridges LLC签署了对2021年10月27日签订的顾问协议的第二次修订（「修订顾问协议」）。根据修订顾问协议的条款，ChemBridges LLC有资格获得公司上一财年截至时的流通普通股数量的1.5%的股份。公司同意每年3月1日授予股份，并在12个月内按季度归属。随后，公司与ChemBridges LLC达成一致，自2024年1月1日起终止公司支付ChemBridges LLC以公司上一财年截至时的流通普通股数量的1.5%股份的义务。自2024年1月1日起，公司与ChemBridges LLC签订了一项新的顾问协议，期限为24个月，提供在策略、并购、研发、有机增长、运营优化、商业卓越、投资者关系以及企业和业务沟通方面的顾问服务，并同意发行200,000股有条件股票，按四个相等的半年分期归属。
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关联方交易的政策和程序
我们的董事会已经通过了一项书面相关方交易政策，规定了审查和批准或追认相关方交易的政策和程序。该政策涵盖了根据证券法第S-K条款第404项所列的某些例外情况，任何交易、安排或关系，或我们曾经或将要参与的任何类似交易、安排或关系，其中涉及的金额超过120,000美元，且相关方拥有或将拥有直接或间接的重大利益，包括但不限于由相关方或相关方拥有重大利益的实体购买的商品或服务，债务，债务担保，以及我们雇用相关方的情况。在审查和批准任何此类交易时，我们的审计委员会负责考虑所有相关事实和情况，包括但不限于交易是否是在与不相关第三方的公平交易中可以获得的条款，并考虑相关方在交易中的利益程度。
违法16(A)节报告
《交易所法》第16(a)节要求我们的高管、董事以及持有我们注册权益证券超过百分之十的个人向SEC提交所有权和所有权变更报告。SEC规定，高管、董事和持有超过百分之十的股东必须向我们提供他们所提交的所有第16(a)表格的副本。
根据我们对提供给我们的此类表格副本的审核以及某些报告人的书面声明，2023年12月31日结束的年度内没有其他报告要求，所有高管、董事及持有超过10%股份的实益拥有者均遵守了第16(a)条款的报告要求。
计划在2025年举行的年度股东大会上提交的股东提案，必须在2025年6月20日之前送达我们，这距离2024年代理材料发送给股东的日期的首个周年纪念日还有120天，以便能包含在我们与该会议相关的代理陈述和代理表格中，除非2025年年度股东会议的日期与我们2024年年度会议的首个周年纪念日相差超过30天，届时该提案的截止日期将在我们开始打印和发送代理材料之前的合理时间。这些提案必须符合SEC对这类提案在形式和实质上的要求，以便被纳入代理声明中。
此外，我们的修订和重述的章程规则建立了一个提前通知程序，涉及某些事项，包括未包含在我们代理声明中的股东提案和提名，以便在股东的年度会议上提出。一般来说，通知必须符合我们修订和重述的章程规则中的要求，并在距离上一年度股东年度会议的周年纪念日之前不少于90个日历天也不少于120个日历天之前送达我们的主要执行办公室。因此，为了在我们2025年的股东年度会议上提交此类提案，该提案必须在2025年7月23日或2025年8月22日之间向我们提交。然而，如果年度会议的日期比该周年纪念日早30天以上或晚60天以上，则通知必须在此年度会议之前的第120天不早于该日期接收，并且不晚于此年度会议之前的第90个日历天，或者，如果晚于该日期，则在首次公开宣布会议日期后的十个日历天内。如果股东未能在这些日期之前给予通知，则董事会为2025年年度会议所征求的代理人所指定的人可以对任何此类提案行使酌情投票权。建议股东查看我们的修订和重述的章程规则，其中还规定了股东通知的形式和内容要求。
为了遵守通用代理规则，计划在与我们2025年年度会议有关的情况下，寻求代理以支持其他董事候选人的股东，必须在2025年9月25日之前提供通知，列出交易法第14a-19条所要求的信息。
| 37 |
| 目录 |
我们截至2023年12月31日的财务报表已包含在我们的2023年年度报告中，我们将在本次委托声明发布时同时向股东提供该报告。我们的委托材料和年度报告可在我们的网站www.aspisotopes.com上查看，也可以从SEC的网站获取。 www.sec.gov. 您也可以通过向ASP Isotopes Inc.发送书面请求免费获取我们的年度报告，地址是：601 Pennsylvania Avenue NW, South Building, Suite 900, Washington, DC 20004，注意事项：投资者关系。
我们网站上包含的信息或可以通过我们网站访问的信息并不打算被纳入本代理声明中，并且在本代理声明中提到我们的网站地址仅为无效的文本引用。
根据美国证券交易委员会（SEC）发布的规则，公司、经纪人、银行或其他中介可以向两个或更多股东居住的家庭发送一份通知。这种被称为"家庭通知"的做法旨在减少重复邮件的发送，节省大量印刷和邮寄费用以及自然资源。共享地址的股东，如之前已被其经纪人、银行或其他中介通知并同意家庭通知，将只收到一份通知。如果您希望在未来的邮寄中选择退出此做法，并为每位共享同一地址的股东单独接收通知，请联系您的经纪人、银行或其他中介。您还可以通过向ASP Isotopes Inc.发送书面请求，免费获取单独的通知，或如适用，获取代理材料，地址为：601 Pennsylvania Avenue NW, South Building, Suite 900, Washington, DC 20004，注意：公司秘书，或拨打电话（202）756-2245。收到此类请求后，我们将快速发送额外的通知副本，或如适用，代理材料。共享地址的股东如果收到了多份通知，可以通过联系他们的经纪人、银行或其他中介，或向ASP Isotopes Inc.发送书面请求，要求送达一份通知，地址为：601 Pennsylvania Avenue NW, South Building, Suite 900, Washington, DC 20004，注意：公司秘书，或拨打电话（202）756-2245。
我们不知道在年度会议上将由股东考虑或采取行动的代理声明中描述的其他任何业务。然而，如果有其他业务被恰当地提交到会议上，代表的股份将根据代理中指定的人员或其替代者的最佳判断投票。无论您持有多少股份，确保您的股份在年度会议上得到代表是非常重要的。因此，强烈建议您尽快投票，以确保您的投票被记录。
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| 根据董事会的命令 | |
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| 保罗 E. 曼 |
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| 董事会主席 |
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| 华盛顿特区 |
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| 2024 年 10 月 18 日 |
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| 38 |
| 目录 |
Exhibit A
2024 EQUITY INCENTIVE PLAN, AS AMENDED
| Table of Contents |
| Qunatum Leap Energy LLC 2024 Equity Incentive Plan |
| 1 |
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| 1. | Establishment, Purpose and term of Plan |
| 1 |
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| 1.1 | Establishment |
| 1 |
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| 1.2 | Purpose |
| 1 |
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| 1.3 | Term of Plan |
| 1 |
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| 2. | Definitions and Construction |
| 1 |
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| 2.1 | Definitions |
| 1 |
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| 2.2 | Construction |
| 9 |
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| 3. | Administration |
| 9 |
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| 3.1 | Administration by the Committee |
| 9 |
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| 3.2 | Authority of Officers |
| 10 |
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| 3.3 | Administration with Respect to Insiders |
| 10 |
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| 3.4 | Powers of the Committee |
| 10 |
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| 3.5 | Option or SAR Repricing |
| 11 |
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| 3.6 | Indemnification |
| 12 |
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| 4. | Shares Subject to Plan |
| 12 |
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| 4.1 | Maximum Number of Shares Issuable |
| 12 |
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| 4.2 | Share Counting |
| 12 |
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| 4.3 | Adjustments for Changes in Capital Structure |
| 13 |
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| 4.4 | Assumption or Substitution of Awards |
| 13 |
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| 5. | Eligibility, Participation and Award Limitations |
| 14 |
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| 5.1 | Persons Eligible for Awards |
| 14 |
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| 5.2 | Participation in the Plan |
| 14 |
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| 5.3 | Incentive Stock Option Limitations |
| 14 |
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| 5.4 | Nonemployee Director Award Limit |
| 15 |
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| 6. | Stock Options |
| 15 |
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| 6.1 | Exercise Price |
| 15 |
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| 6.2 | Exercisability and Term of Options |
| 15 |
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| 6.3 | Payment of Exercise Price |
| 16 |
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| 6.4 | Effect of Termination of Service |
| 17 |
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| 6.5 | Transferability of Options |
| 18 |
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| 7. | Stock Appreciation Rights |
| 18 |
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| 7.1 | Types of SARs Authorized |
| 18 |
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| 7.2 | Exercise Price |
| 18 |
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| 7.3 | Exercisability and Term of SARs |
| 19 |
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| 7.4 | Exercise of SARs |
| 19 |
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| 7.5 | Deemed Exercise of SARs |
| 19 |
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| 7.6 | Effect of Termination of Service |
| 20 |
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| 7.7 | Transferability of SARs |
| 20 |
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| 8. | Restricted Stock Awards |
| 20 |
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| 8.1 | Types of Restricted Stock Awards Authorized |
| 20 |
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| 8.2 | Purchase Price |
| 20 |
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| 8.3 | Purchase Period |
| 21 |
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| 8.4 | Payment of Purchase Price |
| 21 |
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| 8.5 | Vesting and Restrictions on Transfer |
| 21 |
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| i |
| Table of Contents |
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| 8.6 | Voting Rights; Dividends and Distributions |
| 21 |
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| 8.7 | Effect of Termination of Service |
| 22 |
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| 8.8 | Nontransferability of Restricted Stock Award Rights |
| 22 |
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| 9. | Restricted Stock Units |
| 22 |
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| 9.1 | Grant of Restricted Stock Unit Awards |
| 22 |
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| 9.2 | Purchase Price |
| 22 |
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| 9.3 | Vesting |
| 22 |
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| 9.4 | Voting Rights, Dividend Equivalent Rights and Distributions |
| 23 |
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| 9.5 | Effect of Termination of Service |
| 23 |
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| 9.6 | Settlement of Restricted Stock Unit Awards |
| 23 |
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| 9.7 | Nontransferability of Restricted Stock Unit Awards |
| 24 |
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| 10. | Performance Awards |
| 24 |
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| 10.1 | Types of Performance Awards Authorized |
| 24 |
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| 10.2 | Initial Value of Performance Shares and Performance Units |
| 24 |
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| 10.3 | Establishment of Performance Period, Performance Goals and Performance Award Formula |
| 24 |
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| 10.4 | Measurement of Performance Goals |
| 25 |
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| 10.5 | Settlement of Performance Awards |
| 25 |
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| 10.6 | Voting Rights; Dividend Equivalent Rights and Distributions |
| 27 |
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| 10.7 | Effect of Termination of Service |
| 27 |
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| 10.8 | Nontransferability of Performance Awards |
| 28 |
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| 11. | Cash-Based Awards and Other Common Equity-Based Awards |
| 28 |
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| 11.1 | Grant of Cash-Based Awards |
| 28 |
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| 11.2 | Grant of Other Common Equity-Based Awards |
| 28 |
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| 11.3 | Value of Cash-Based and Other Common Equity-Based Awards |
| 28 |
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| 11.4 | Payment or Settlement of Cash-Based Awards and Other Common Equity-Based Awards |
| 29 |
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| 11.5 | Voting Rights; Dividend Equivalent Rights and Distributions |
| 29 |
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| 11.6 | Effect of Termination of Service |
| 29 |
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| 11.7 | Nontransferability of Cash-Based Awards and Other Common Equity-Based Awards |
| 29 |
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| 12. | Standard Forms of Award Agreement |
| 30 |
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| 12.1 | Award Agreements |
| 30 |
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| 12.2 | Authority to Vary Terms |
| 30 |
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| 13. | Change in Control |
| 30 |
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| 13.1 | Effect of Change in Control on Awards |
| 30 |
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| 13.2 | Effect of Change in Control on Nonemployee Director Awards |
| 32 |
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| 13.3 | Federal Excise Tax Under Section 4999 of the Code |
| 32 |
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| 14. | Compliance with Securities Law |
| 33 |
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| 15. | Compliance with Section 409A |
| 33 |
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| 15.1 | Awards Subject to Section 409A |
| 33 |
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| 15.2 | Deferral and/or Distribution Elections |
| 34 |
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| 15.3 | Subsequent Elections |
| 34 |
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| 15.4 | Payment of Section 409A Deferred Compensation |
| 35 |
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| 16. | Tax Withholding |
| 37 |
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| 16.1 | Tax Withholding in General |
| 37 |
|
| ii |
| Table of Contents |
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| 16.2 | Withholding in or Directed Sale of Shares |
| 37 |
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| 17. | Amendment, Suspension or Termination of Plan |
| 37 |
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| 18. | Miscellaneous Provisions |
| 38 |
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| 18.1 | Repurchase Rights |
| 38 |
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| 18.2 | Forfeiture Events |
| 38 |
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| 18.3 | Provision of Information |
| 38 |
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| 18.4 | Electronic Delivery and Participation |
| 39 |
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| 18.5 | Change in Time Commitment |
| 39 |
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| 18.6 | Rights as Employee, Consultant or Director |
| 39 |
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| 18.7 | Rights as a Stockholder |
| 39 |
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| 18.8 | Delivery of Title to Shares |
| 39 |
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| 18.9 | Fractional Shares |
| 40 |
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| 18.10 | Provisions for Non-U.S |
| 40 |
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| 18.11 | Lock-Up Period |
| 40 |
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| 18.12 | Data Privacy |
| 40 |
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| 18.13 | Retirement and Welfare Plans |
| 41 |
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| 18.14 | Beneficiary Designation |
| 41 |
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| 18.15 | Severability |
| 41 |
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| 18.16 | No Constraint on Corporate Action |
| 41 |
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| 18.17 | Unfunded Obligation |
| 41 |
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| 18.18 | Choice of Law |
| 41 |
|
| iii |
| Table of Contents |
QUANTUM LEAP ENERGY LLC
2024 EQUITY INCENTIVE PLAN
1. ESTABLISHMENT, PURPOSE AND TERM OF PLAN.
1.1 Establishment. The Quantum Leap Energy LLC 2024 Equity Incentive Plan (the “Plan”) is hereby established effective as of the Effective Date. Certain capitalized terms used herein have the meanings set forth in Section 2 of the Plan.
1.2 Purpose. The purpose of the Plan is to advance the interests of the Company and the Parent Corporation by providing an incentive to attract, retain and reward persons performing services for the Participating Company Group and by motivating such persons to contribute to the growth and profitability of the Participating Company Group. The Plan seeks to achieve this purpose by providing for Awards in the form of Options, Stock Appreciation Rights, Restricted Stock Awards, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards and Other Common Equity-Based Awards.
1.3 Term of Plan. The Plan shall continue in effect until its termination by the Committee; provided, however, that any Incentive Stock Option shall be granted, if at all, within ten (10) years from the earlier of the date that the Plan was approved by the Board or the Parent Corporation.
2. DEFINITIONS AND CONSTRUCTION.
2.1 Definitions. Whenever used herein, the following terms shall have their respective meanings set forth below:
(a) “Affiliate” means (i) a parent entity, other than the Parent Corporation, that directly, or indirectly through one or more intermediary entities, controls the Company or (ii) a subsidiary entity, other than a Subsidiary Corporation, that is controlled by the Company directly or indirectly through one or more intermediary entities. For this purpose, the terms “parent,” “subsidiary,” “control” and “controlled by” shall have the meanings assigned to such terms for the purposes of registration of securities on Form S-8 under the Securities Act.
(b) “Award” means any Option, Stock Appreciation Right, Restricted Stock Purchase Right, Restricted Stock Bonus, Restricted Stock Unit, Performance Share, Performance Unit, Cash-Based Award or Other Stock-Based Award granted under the Plan.
(c) “Award Agreement” means a written or electronic agreement between the Company and a Participant setting forth the terms, conditions and restrictions applicable to an Award.
(d) “Board” means the Board of Managers of the Company (or the board of directors of the Company if the Company is then a corporation).
(e) “Cash-Based Award” means an Award denominated in cash and granted pursuant to Section 11.
| 1 |
| Table of Contents |
(f) “Cashless Exercise” means a Cashless Exercise as defined in Section 6.3(b)(i).
(g) “Cause” has the meaning ascribed to such term in any written agreement between the Participant and the applicable Participating Company that employs or engages Participant defining such term and, in the absence of such an agreement that contains such term, “Cause” means, with respect to a Participant, the occurrence of any of the following events: (i) the Participant’s theft, dishonesty, willful misconduct, breach of fiduciary duty for personal profit, or falsification of any Participating Company documents or records; (ii) the Participant’s material failure to abide by a Participating Company’s code of conduct or other policies (including, without limitation, policies relating to confidentiality and reasonable workplace conduct); (iii) the Participant’s unauthorized use, misappropriation, destruction or diversion of any tangible or intangible asset or corporate opportunity of a Participating Company (including, without limitation, the Participant’s improper use or disclosure of a Participating Company’s confidential or proprietary information); (iv) any intentional act by the Participant which has a material detrimental effect on a Participating Company’s reputation or business; (v) the Participant’s repeated failure or inability to perform any reasonable assigned duties after written notice from a Participating Company of, and a reasonable opportunity to cure, such failure or inability; (vi) any material breach by the Participant of any employment, service, non-disclosure, non-competition, non-solicitation or other similar agreement between the Participant and a Participating Company, which breach is not cured pursuant to the terms of such agreement (except with respect to a disclosure protected by applicable law); or (vii) the Participant’s conviction (including any plea of guilty or nolo contendere) of any criminal act involving fraud, dishonesty, misappropriation or moral turpitude, or which impairs the Participant’s ability to perform his or her duties with a Participating Company.
(h) “Change in Control” means the occurrence of any one or a combination of the following:
(i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total Fair Market Value or total combined voting power of the Company’s then-outstanding securities entitled to vote generally in the election of Directors; provided, however, that a Change in Control shall not be deemed to have occurred if such degree of beneficial ownership results from any of the following: (A) an acquisition by any person who on the Effective Date is the beneficial owner of more than fifty percent (50%) of such voting power, (B) any acquisition directly from the Company, including, without limitation, pursuant to or in connection with a public offering of securities, (C) any acquisition by the Company, (D) any acquisition by a trustee or other fiduciary under an employee benefit plan of a Participating Company or (E) any acquisition by an entity owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the voting securities of the Company; or
(ii) an Ownership Change Event or series of related Ownership Change Events (collectively, a “Transaction”) in which the stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding securities entitled to vote generally in the election of Directors or, in the case of an Ownership Change Event described in Section 2.1(gg)(iii), the entity to which the assets of the Company were transferred (the “Transferee”), as the case may be; or
| 2 |
| Table of Contents |
(iii) a date specified by the Committee following approval by the stockholders of a plan of complete liquidation or dissolution of the Company; provided, however, that a Change in Control shall be deemed not to include a transaction described in subsections (i) or (ii) of this Section 2.1(h) in which a majority of the members of the board of directors of the continuing, surviving or successor entity, or parent thereof, immediately after such transaction is comprised of Incumbent Directors.
For purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company or the Transferee, as the case may be, either directly or through one or more subsidiary corporations or other business entities. The Committee shall determine whether multiple events described in subsections (i), (ii) and (iii) of this Section 2.1(h) are related and to be treated in the aggregate as a single Change in Control, and its determination shall be final, binding and conclusive.
Notwithstanding the foregoing, if a Change in Control constitutes a payment event with respect to any Award (or portion of any Award) that provides for the deferral of compensation that is subject to Section 409A, to the extent required to avoid the imposition of additional taxes under Section 409A, the transaction or event described in subsections (i), (ii) and (iii) with respect to such Award (or portion thereof) shall only constitute a Change in Control for purposes of the payment timing of such Award if such transaction also constitutes a “change in control event,” as defined in Treasury Regulation Section 1.409A-3(i)(5).
The Committee shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change in Control has occurred pursuant to the above definition, the date of the occurrence of such Change in Control and any incidental matters relating thereto; provided that any exercise of authority in conjunction with a determination of whether a Change in Control is a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5) shall be consistent with such regulation.
(i) “Code” means the Internal Revenue Code of 1986, as amended, and any applicable regulations and administrative guidelines promulgated thereunder.
(j) “Committee” means the Compensation Committee and such other committee or subcommittee of the Board, if any, duly appointed to administer the Plan and having such powers in each instance as shall be specified by the Board. If, at any time, there is no committee of the Board then authorized or properly constituted to administer the Plan, the Board shall exercise all of the powers of the Committee granted herein, and, in any event, the Board may in its discretion exercise any or all of such powers and, in such instances, references herein to the Committee shall mean the Board. Unless the Board specifically determines otherwise, each member of the Committee shall, at the time it takes any action with respect to an Award under the Plan, be a “non-employee director” within the meaning of Rule 16b-3 and an “independent director” under the rules of any stock exchange on which the Common Equity is listed. However, the fact that a Committee member shall fail to qualify as “non-employee director” or an “independent director” shall not invalidate any Award granted by the Committee which Award is otherwise validly granted under the Plan.
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| Table of Contents |
(k) “Common Equity” means the shares of common stock or common equity units, as applicable, of the Company, as adjusted from time to time in accordance with Section 4.
(l) “Common Equity Deemed Outstanding” means, at any given time, the sum of (a) the number of shares or units of Common Equity outstanding at such time, plus (b) the number of shares or units of Common Equity issuable upon conversion or exchange of Convertible Securities outstanding at such time, in each case, regardless of whether the Convertible Securities are actually convertible or exercisable at such time. For the avoidance of doubt, Common Equity Deemed Outstanding as of the Effective Date shall include the membership interest of the Parent Corporation and the shares or units of Common Equity issuable upon conversion of the series of the Company’s convertible promissory notes issued as of the Effective Date.
(m) “Company” means Quantum Leap Energy LLC, a Delaware limited liability company, and any successor corporation thereto.
(n) “Consultant” means a person engaged to provide consulting or advisory services (other than as an Employee or a Director) to a Participating Company, provided that the identity of such person, the nature of such services or the entity to which such services are provided would not preclude the Company from offering or selling securities to such person pursuant to the Plan in reliance on registration on Form S-8 under the Securities Act.
(o) “Convertible Securities” means any securities (directly or indirectly) convertible into or exchangeable for Common Equity.
(p) “Director” means a member of the Board.
(q) “Disability” means the permanent and total disability of the Participant, within the meaning of Section 22(e)(3) of the Code.
(r) “Dividend Equivalent Right” means the right of a Participant, granted at the discretion of the Committee or as otherwise provided by the Plan, to receive a credit for the account of such Participant in an amount equal to the cash dividends paid on one share or unit of Common Equity for each share or unit of Common Equity represented by an Award held by such Participant.
(s) “Effective Date” means the date of the initial closing of the offering of the Company’s convertible promissory notes.
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| Table of Contents |
(t) “Employee” means any person treated as an employee (including an Officer or a Director who is also treated as an employee) in the records of a Participating Company and, with respect to any Incentive Stock Option granted to such person, who is an employee for purposes of Section 422 of the Code; provided, however, that neither service as a Director nor payment of a Director’s fee shall be sufficient to constitute employment for purposes of the Plan. The Company shall determine in good faith and in the exercise of its discretion whether an individual has become or has ceased to be an Employee and the effective date of such individual’s employment or termination of employment, as the case may be. For purposes of an individual’s rights, if any, under the terms of the Plan as of the time of the Company’s determination of whether or not the individual is an Employee, all such determinations by the Company shall be final, binding and conclusive as to such rights, if any, notwithstanding that the Company or any court of law or governmental agency subsequently makes a contrary determination as to such individual’s status as an Employee.
(u) “Exchange Act” means the Securities Exchange Act of 1934, as amended.
(v) “Fair Market Value” means, as of any date, the value of a share or unit of Common Equity or other property as determined by the Committee, in its discretion, or by the Company, in its discretion, if such determination is expressly allocated to the Company herein, subject to the following:
(i) Except as otherwise determined by the Committee, if, on such date, the Common Equity is listed or quoted on a national or regional securities exchange or quotation system, the Fair Market Value of a share or unit of Common Equity shall be the closing price of a share or unit of Common Equity as quoted on the national or regional securities exchange or quotation system constituting the primary market for the Common Equity, as reported in The Wall Street Journal or such other source as the Company deems reliable. If the relevant date does not fall on a day on which the Common Equity has traded on such securities exchange or quotation system, the date on which the Fair Market Value shall be established shall be the last day on which the Common Equity was so traded or quoted prior to the relevant date, or such other appropriate day as shall be determined by the Committee, in its discretion.
(ii) If, on such date, the Common Equity is not listed or quoted on a national or regional securities exchange or quotation system, the Fair Market Value of a share or unit of Common Equity shall be as determined by the Committee in good faith without regard to any restriction other than a restriction which, by its terms, will never lapse, and in a manner consistent with the requirements of Section 409A and/or Section 422 of the Code to the extent applicable.
(w) “Full Value Award” means any Award settled in Common Equity, other than (i) an Option, (ii) a Stock Appreciation Right, or (iii) a Restricted Stock Purchase Right or an Other Common Equity-Based Award under which the Company will receive monetary consideration equal to the Fair Market Value (determined on the effective date of grant) of the shares subject to such Award.
(x) “Incentive Stock Option” means an Option intended to be (as set forth in the Award Agreement) and which qualifies as an incentive stock option within the meaning of Section 422(b) of the Code.
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(y) “Incumbent Director” means a director who either (i) is a member of the Board as of the Effective Date or (ii) is elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but excluding a director who was elected or nominated in connection with an actual or threatened proxy contest relating to the election of directors of the Company).
(z) “Insider” means an Officer, a Director or other person whose transactions in Common Equity are subject to Section 16 of the Exchange Act.
(aa) “Materially Impair” means any amendment to the terms of the Award that materially adversely affects the Participant’s rights under the Award. A Participant’s rights under an Award will not be deemed to have been Materially Impaired by any such amendment if the Committee, in its sole discretion, determines that the amendment, taken as a whole, does not materially impair the Participant’s rights. For example, the following types of amendments to the terms of an Award do not Materially Impair the Participant’s rights under the Award: (i) imposition of reasonable restrictions on the minimum number of shares subject to an Option that may be exercised, (ii) to maintain the qualified status of the Award as an Incentive Stock Option under Section 422 of the Code; (iii) to change the terms of an Incentive Stock Option in a manner that disqualifies, impairs or otherwise affects the qualified status of the Award as an Incentive Stock Option under Section 422 of the Code; (iv) to clarify the manner of exemption from, or to bring the Award into compliance with or qualify it for an exemption from, Section 409A; or (v) to comply with other applicable laws.
(bb) “Net Exercise” means a Net Exercise as defined in Section 6.3(b)(iii).
(cc) “Nonemployee Director” means a Director who is not an Employee.
(dd) “Nonemployee Director Award” means any Award granted to a Nonemployee Director.
(ee) “Nonstatutory Stock Option” means an Option not intended to be (as set forth in the Award Agreement) or which does not qualify as an incentive stock option within the meaning of Section 422(b) of the Code.
(ff) “Officer” means any person designated by the Board as an officer of the Company.
(gg) “Option” means an Incentive Stock Option or a Nonstatutory Stock Option granted pursuant to the Plan.
(hh) “Other Common Equity-Based Award” means an Award denominated in shares or units of Common Equity and granted pursuant to Section 11.
(ii) “Ownership Change Event” means the occurrence of any of the following with respect to the Company: (i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of securities of the Company representing more than fifty percent (50%) of the total combined voting power of the Company’s then outstanding securities entitled to vote generally in the election of Directors; (ii) a merger or consolidation in which the Company is a party; or (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company (other than a sale, exchange or transfer to one or more subsidiaries of the Company).
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(jj) “Parent Corporation” means ASP Isotopes Inc., a Delaware corporation and the sole member of the Company as of the Effective Date.
(kk) “Participant” means any eligible person who has been granted one or more Awards.
(ll) “Participating Company” means the Company, the Parent Corporation or any Subsidiary Corporation or Affiliate.
(mm) “Participating Company Group” means, at any point in time, the Company and all other entities collectively which are then Participating Companies.
(nn) “Performance Award” means an Award of Performance Shares or Performance Units.
(oo) “Performance Award Formula” means, for any Performance Award, a formula or table established by the Committee pursuant to Section 10.3 which provides the basis for computing the value of a Performance Award at one or more levels of attainment of the applicable Performance Goal(s) measured as of the end of the applicable Performance Period.
(pp) “Performance Goal” means a performance goal established by the Committee pursuant to Section 10.3.
(qq) “Performance Period” means a period established by the Committee pursuant to Section 10.3 at the end of which one or more Performance Goals are to be measured.
(rr) “Performance Share” means a right granted to a Participant pursuant to Section 10 to receive a payment equal to the value of a Performance Share, as determined by the Committee, based upon attainment of applicable Performance Goal(s).
(ss) “Performance Unit” means a right granted to a Participant pursuant to Section 10 to receive a payment equal to the value of a Performance Unit, as determined by the Committee, based upon attainment of applicable Performance Goal(s).
(tt) “Plan Administrator” means the person, persons, and/or third-party administrator designated by the Company to administer the day to day operations of the Plan and the Company’s other equity incentive programs.
(uu) “Post-Termination Exercise Period” means the period following termination of a Participant’s continuous Service within which an Option or SAR is exercisable, as specified in Section 6.4(a).
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(vv) “Restricted Stock Award” means an Award of a Restricted Stock Bonus or a Restricted Stock Purchase Right.
(ww) “Restricted Stock Bonus” means Common Equity granted to a Participant pursuant to Section 8.
(xx) “Restricted Stock Purchase Right” means a right to purchase Common Equity granted to a Participant pursuant to Section 8.
(yy) “Restricted Stock Unit” means a right granted to a Participant pursuant to Section 9 to receive on a future date or occurrence of a future event a share or unit of Common Equity or cash in lieu thereof, as determined by the Committee.
(zz) “Rule 16b-3” means Rule 16b-3 under the Exchange Act, as amended from time to time, or any successor rule or regulation.
(aaa) “SAR” or “Stock Appreciation Right” means a right granted to a Participant pursuant to Section 7 to receive payment, for each share or unit of Common Equity subject to such Award, of an amount equal to the excess, if any, of the Fair Market Value of a share or unit of Common Equity on the date of exercise of the Award over the exercise price thereof.
(bbb) “Section 409A” means Section 409A of the Code.
(ccc) “Section 409A Deferred Compensation” means compensation provided pursuant to an Award that constitutes nonqualified deferred compensation within the meaning of Section 409A.
(ddd) “Securities Act” means the Securities Act of 1933, as amended.
(eee) “Service” means a Participant’s employment or service with the Participating Company Group, whether as an Employee, a Director or a Consultant. Unless otherwise provided by the Committee, a Participant’s Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders Service or a change in the Participating Company for which the Participant renders Service, provided that there is no interruption or termination of the Participant’s Service. Furthermore, a Participant’s Service shall not be deemed to have been interrupted or terminated if the Participant takes any military leave, sick leave, or other bona fide leave of absence approved by the Company. However, unless otherwise provided by the Committee, if any such leave taken by a Participant exceeds ninety (90) days, then on the ninety-first (91st) day following the commencement of such leave the Participant’s Service shall be deemed to have terminated, unless the Participant’s right to return to Service is guaranteed by statute or contract. Notwithstanding the foregoing, unless otherwise designated by the Company or required by law, an unpaid leave of absence shall not be treated as Service for purposes of determining vesting under the Participant’s Award Agreement. A Participant’s Service shall be deemed to have terminated either upon an actual termination of Service or upon the business entity for which the Participant performs Service ceasing to be a Participating Company. Subject to the foregoing, the Company, in its discretion, shall determine whether the Participant’s Service has terminated and the effective date of and reason for such termination.
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(fff) “Stock Tender Exercise” means a Stock Tender Exercise as defined in Section 6.3(b)(ii).
(ggg) “Subsidiary Corporation” means any present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code.
(hhh) “Ten Percent Owner” means a Participant who, at the time an Option is granted to the Participant, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of a Participating Company (other than an Affiliate) within the meaning of Section 422(b)(6) of the Code.
(iii) “Trading Compliance Policy” means the written policy of the Company pertaining to the purchase, sale, transfer or other disposition of the Company’s equity securities by Directors, Officers, Employees or other service providers who may possess material, nonpublic information regarding the Company or its securities.
(jjj) “Vesting Conditions” mean those conditions established in accordance with the Plan prior to the satisfaction of which an Award or shares subject to an Award remain subject to forfeiture or a repurchase option in favor of the Company exercisable for the Participant’s monetary purchase price, if any, for such shares upon the Participant’s termination of Service or failure of a performance condition to be satisfied.
2.2 Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.
3. ADMINISTRATION.
3.1 Administration by the Committee. The Plan shall be administered by the Committee. All questions of interpretation of the Plan, of any Award Agreement or of any other form of agreement or other document employed by the Company in the administration of the Plan or of any Award shall be determined by the Committee, and such determinations shall be final, binding and conclusive upon all persons having an interest in the Plan or such Award, unless fraudulent or made in bad faith. Any and all actions, decisions and determinations taken or made by the Committee in the exercise of its discretion pursuant to the Plan or Award Agreement or other agreement thereunder (other than determining questions of interpretation pursuant to the preceding sentence) shall be final, binding and conclusive upon all persons having an interest therein. All expenses incurred in connection with the administration of the Plan shall be paid by the Company.
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3.2 Authority of Officers. Any Officer shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, determination or election that is the responsibility of or that is allocated to the Company herein, provided that the Officer has apparent authority with respect to such matter, right, obligation, determination or election. To the extent permitted by applicable law, the Committee may, in its discretion, delegate to a committee comprised of one or more Officers the authority to grant one or more Awards, without further approval of the Committee, to any Employee, other than a person who, at the time of such grant, is an Insider, and to exercise such other powers under the Plan as the Committee may determine; provided, however, that (a) the Committee shall fix the maximum number of shares subject to Awards that may be granted by such Officers, (b) each such Award shall be subject to the terms and conditions of the appropriate standard form of Award Agreement approved by the Board or the Committee and shall conform to the provisions of the Plan, and (c) each such Award shall conform to such other limits and guidelines as may be established from time to time by the Committee.
3.3 Administration with Respect to Insiders. With respect to participation by Insiders in the Plan, at any time that any class of equity security of the Company is registered pursuant to Section 12 of the Exchange Act, the Plan shall be administered in compliance with the requirements, if any, of Rule 16b-3.
3.4 Powers of the Committee. In addition to any other powers set forth in the Plan and subject to the provisions of the Plan, the Committee shall have the full and final power and authority, in its discretion:
(a) to determine the persons to whom, and the time or times at which, Awards shall be granted and the number of shares or units of Common Equity, units or monetary value to be subject to each Award;
(b) to determine the type of Award granted;
(c) to determine the Fair Market Value of shares or units of Common Equity or other property;
(d) to determine the terms, conditions and restrictions applicable to each Award (which need not be identical) and any shares acquired pursuant thereto, including, without limitation, (i) the exercise or purchase price of shares pursuant to any Award, (ii) the method of payment for shares purchased pursuant to any Award, (iii) the method for satisfaction of any tax withholding obligation arising in connection with any Award, including by the withholding or delivery of shares or units of Common Equity, (iv) the timing, terms and conditions of the exercisability or vesting of any Award or any shares acquired pursuant thereto, (v) the Performance Measures, Performance Period, Performance Award Formula and Performance Goals applicable to any Award and the extent to which such Performance Goals have been attained, (vi) the time of expiration of any Award, (vii) the effect of any Participant’s termination of Service on any of the foregoing, and (viii) all other terms, conditions and restrictions applicable to any Award or shares acquired pursuant thereto not inconsistent with the terms of the Plan;
(e) to determine whether an Award will be settled in shares or units of Common Equity, cash, other property or in any combination thereof;
(f) to approve one or more forms of Award Agreement;
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(g) to amend, modify, extend, cancel or renew any Award or to waive any restrictions or conditions applicable to any Award or any shares acquired pursuant thereto provided however, that, a Participant’s rights under any Award will not be Materially Impaired by any such amendment unless (i) the Company requests the consent of the affected Participant, and (ii) such Participant consents in writing;
(h) to accelerate, continue, extend or defer the exercisability or vesting of any Award or any shares acquired pursuant thereto, including with respect to the period following a Participant’s termination of Service provided however, that, a Participant’s rights under any Award will not be Materially Impaired by any such amendment unless (i) the Company requests the consent of the affected Participant, and (ii) such Participant consents in writing;
(i) to prescribe, amend or rescind rules, guidelines and policies relating to the Plan, or to adopt sub-plans or supplements to, or alternative versions of, the Plan, including, without limitation, as the Committee deems necessary or desirable to comply with the laws of, or to accommodate the tax policy, accounting principles or custom of, foreign jurisdictions whose residents may be granted Awards;
(j) To prohibit the exercise of any Option, SAR or other exercisable Award during a period of up to 30 days prior to the consummation of any pending stock dividend, stock split, combination or exchange of shares, merger, consolidation or other distribution (other than normal cash dividends) of Company assets to stockholders, or any other change affecting the shares or units of Common Equity or the share price of the Common Equity including any Change in Control, for reasons of administrative convenience;
(k) To effect, at any time and from time to time, subject to the consent of any Participant whose Award is Materially Impaired by such action, (i) the reduction of the exercise price (or strike price) of any outstanding Option or SAR; (i) the cancellation of any outstanding Option or SAR and the grant in substitution therefor of (A) a new Option, SAR, Restricted Stock Award, RSU Award or Other Award, under the Plan or another equity plan of the Company, covering the same or a different number of shares or units of Common Equity, (B) cash and/or (C) other valuable consideration (as determined by the Board); or (iii) any other action that is treated as a repricing under generally accepted accounting principles; and
(l) to correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Agreement and to make all other determinations and take such other actions with respect to the Plan or any Award as the Committee may deem advisable to the extent not inconsistent with the provisions of the Plan or applicable law.
3.5 Option or SAR Repricing. The Committee shall have the authority, without additional approval by the stockholders of the Company, to approve a program providing for either (a) the cancellation of outstanding Options or SARs having exercise prices per share greater than the then Fair Market Value of a share or unit of Common Equity (“Underwater Awards”) and the grant in substitution therefor of new Options or SARs covering the same or a different number of shares but with an exercise price per share equal to the Fair Market Value per share on the new grant date, Full Value Awards, or payments in cash, or (b) the amendment of outstanding Underwater Awards to reduce the exercise price thereof to the Fair Market Value per share on the date of amendment.
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3.6 Indemnification. In addition to such other rights of indemnification as they may have as members of the Board or the Committee or as officers or employees of the Participating Company Group, to the extent permitted by applicable law, members of the Board or the Committee and any officers or employees of the Participating Company Group to whom authority to act for the Board, the Committee or the Company is delegated shall be indemnified by the Company against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty (60) days after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same.
4. SHARES SUBJECT TO PLAN.
4.1 Maximum Number of Shares Issuable. Subject to adjustment as provided in Sections 4.2 and 4.3, the maximum aggregate number of shares or units of Common Equity that may be issued under the Plan shall be thirty percent (30%) of the Common Equity Deemed Outstanding as of the Effective Date.
4.2 Share Counting. If an outstanding Award for any reason expires or is terminated or canceled without having been exercised or settled in full, or if shares or units of Common Equity acquired pursuant to an Award subject to forfeiture or repurchase are forfeited or repurchased by the Company for an amount not greater than the Participant’s purchase price, the shares or units of Common Equity allocable to the terminated portion of such Award or such forfeited or repurchased shares or units of Common Equity shall again be available for issuance under the Plan. Shares or units of Common Equity shall not be deemed to have been issued pursuant to the Plan with respect to any portion of an Award that is settled in cash. Upon payment in shares or units of Common Equity pursuant to the exercise of an SAR, the number of shares available for issuance under the Plan shall be reduced by the gross number of shares for which the SAR is exercised. If the exercise price of an Option is paid by tender to the Company, or attestation to the ownership, of shares or units of Common Equity owned by the Participant, or by means of a Net Exercise, the number of shares available for issuance under the Plan shall be reduced only by the net number of shares for which the Option is exercised. Shares purchased in the open market with proceeds from the exercise of Options shall not be added to the limit set forth in Section 4.1. Shares withheld or reacquired by the Company in satisfaction of tax withholding obligations pursuant to the exercise or settlement of Options or SARs pursuant to Section 16.2 and Shares withheld or reacquired by the Company in satisfaction of tax withholding obligations pursuant to the vesting or settlement of Full Value Awards pursuant to Section 16.2 shall again become available for issuance under the Plan.
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4.3 Adjustments for Changes in Capital Structure. Subject to any required action by the stockholders of the Company and the requirements of Section 409A and Section 424 of the Code to the extent applicable, in the event of any change in the Common Equity effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the stockholders of the Company in a form other than Common Equity (excepting regular, periodic cash dividends) that has a material effect on the Fair Market Value of shares or units of Common Equity, appropriate and proportionate adjustments shall be made in the number and kind of shares subject to the Plan and to any outstanding Awards, the annual increase set forth in Section 4.1, the Award limits set forth in Section 5.3, and in the exercise or purchase price per share under any outstanding Award in order to prevent dilution or enlargement of Participants’ rights under the Plan. For purposes of the foregoing, conversion of any convertible securities of the Company shall not be treated as “effected without receipt of consideration by the Company.” If a majority of the shares which are of the same class as the shares that are subject to outstanding Awards are exchanged for, converted into, or otherwise become (whether or not pursuant to an Ownership Change Event) shares of another corporation (the “New Shares”), the Committee may unilaterally amend the outstanding Awards to provide that such Awards are for New Shares. In the event of any such amendment, the number of shares subject to, and the exercise or purchase price per share of, the outstanding Awards shall be adjusted in a fair and equitable manner as determined by the Committee, in its discretion and in accordance with Section 409A and Section 424 of the Code to the extent applicable. Any fractional share resulting from an adjustment pursuant to this Section shall be rounded down to the nearest whole number and the exercise or purchase price per share shall be rounded up to the nearest whole cent. In no event may the exercise or purchase price, if any, under any Award be decreased to an amount less than the par value, if any, of the stock subject to such Award. The Committee in its discretion, may also make such adjustments in the terms of any Award to reflect, or related to, such changes in the capital structure of the Company or distributions as it deems appropriate, including modification of Performance Goals, Performance Award Formulas and Performance Periods. The adjustments determined by the Committee pursuant to this Section shall be final, binding and conclusive.
4.4 Assumption or Substitution of Awards. The Committee may, without affecting the number of shares or units of Common Equity reserved or available hereunder, authorize the issuance or assumption of equity awards under this Plan in connection with any merger, consolidation, acquisition of property or stock, or reorganization upon such terms and conditions as it may deem appropriate, subject to compliance with Section 409A and any other applicable provisions of the Code, without reducing the number of shares otherwise available for issuance under the Plan. In addition, subject to compliance with applicable laws, and listing requirements, shares available for grant under a stockholder approved plan of an acquired company (as appropriately adjusted to reflect the transaction) may be used for awards under the Plan to individuals who were not Employees or Directors of the Participating Company Group prior to the transaction and shall not reduce the number of shares otherwise available for issuance under the Plan.
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5. ELIGIBILITY, PARTICIPATION AND AWARD LIMITATIONS.
5.1 Persons Eligible for Awards. Awards may be granted only to Employees, Consultants and Directors, provided, that (a) Incentive Stock Options shall only be available if, at the time the award is granted, the Company is then a corporation, and shall be granted only to Employees (including officers and directors who are also employees) of the Company and (b) Awards other than Incentive Stock Options shall be granted by the Company only to Participants who are Employees, Consultants or Directors and who perform direct services to the Company at the time the award is granted or with respect to which it is reasonably anticipated that the Participant will begin providing direct services within 12 months after the time the Award is granted, or the Company in a chain of corporations or other entities in which each corporation or other entity has a controlling interest in another corporation or other entity in the chain, ending with the corporation or other entity that has a controlling interest in the Company for which the Participant performs direct services on the date of grant of the Award or the Company with respect to which it is reasonably anticipated that the Participant will begin providing direct services within 12 months after the date of grant.
5.2 Participation in the Plan. Awards are granted solely at the discretion of the Committee. Eligible persons may be granted more than one Award. However, eligibility in accordance with this Section shall not entitle any person to be granted an Award, or, having been granted an Award, to be granted an additional Award.
5.3 Incentive Stock Option Limitations.
(a) Maximum Number of Shares Issuable Pursuant to Incentive Stock Options. Subject to adjustment as provided in Section 4.3, the maximum aggregate number of shares or units of Common Equity that may be issued under the Plan pursuant to the exercise of Incentive Stock Options shall not exceed 50% of the maximum aggregate number of shares or units of Common Equity that may be issued under the Plan. The maximum aggregate number of shares or units of Common Equity that may be issued under the Plan pursuant to all Awards other than Incentive Stock Options shall be the number of shares determined in accordance with Section 4.1, subject to adjustment as provided in Sections 4.2 and 4.3.
(b) Persons Eligible. An Incentive Stock Option may be granted only to a person who, on the effective date of grant, is an Employee of the Company, a Parent Corporation or a Subsidiary Corporation (each being an “ISO-Qualifying Corporation”). Any person who is not an Employee of an ISO-Qualifying Corporation on the effective date of the grant of an Option to such person may be granted only a Nonstatutory Stock Option.
(c) Fair Market Value Limitation. To the extent that options designated as Incentive Stock Options (granted under all stock plans of the Participating Company Group, including the Plan) become exercisable by a Participant for the first time during any calendar year for stock having a Fair Market Value greater than One Hundred Thousand Dollars ($100,000), the portion of such options which exceeds such amount shall be treated as Nonstatutory Stock Options. For purposes of this Section, options designated as Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of stock shall be determined as of the time the option with respect to such stock is granted. If the Code is amended to provide for a limitation different from that set forth in this Section, such different limitation shall be deemed incorporated herein effective as of the date and with respect to such Options as required or permitted by such amendment to the Code. If an Option is treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason of the limitation set forth in this Section, the Participant may designate which portion of such Option the Participant is exercising. In the absence of such designation, the Participant shall be deemed to have exercised the Incentive Stock Option portion of the Option first. Upon exercise of the Option, shares issued pursuant to each such portion shall be separately identified.
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5.4 Nonemployee Director Award Limit. The limitations in this Section 5.4 shall apply commencing with the annual period that begins on the Company’s first Annual Meeting of Stockholders following the date the Company has registered its securities under Section 12(b) or Section 12(g) of the Exchange Act. The aggregate value of all compensation granted or paid (as calculated without giving effect to any compensation payment deferral election or any expense reimbursement payments), as applicable, to any individual for service as a Nonemployee Director with respect to any period commencing on the date of the Company’s Annual Meeting of Stockholders for a particular year and ending on the day immediately prior to the date of the Company’s Annual Meeting of Stockholders for the next subsequent year, including Awards granted and cash fees paid by the Company to such Non-Employee Director, will not exceed (i) $600,000 in total value or (ii) in the event such Non-Employee Director is first appointed or elected to the Board during such period, $1,000,000 in total value, in each case calculating the value of any Awards based on the grant date fair value of such Awards for financial reporting purposes.
6. STOCK OPTIONS.
Options shall be evidenced by Award Agreements specifying the number of shares or units of Common Equity covered thereby, in such form as the Committee shall establish. Such Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:
6.1 Exercise Price. The exercise price for each Option shall be established in the discretion of the Committee; provided, however, that (a) the exercise price per share shall be not less than the Fair Market Value of a share or unit of Common Equity on the effective date of grant of the Option and (b) no Incentive Stock Option granted to a Ten Percent Owner shall have an exercise price per share less than one hundred ten percent (110%) of the Fair Market Value of a share or unit of Common Equity on the effective date of grant of the Option. Notwithstanding the foregoing, an Option (whether an Incentive Stock Option or a Nonstatutory Stock Option) may be granted with an exercise price less than the minimum exercise price set forth above if such Option is granted pursuant to an assumption or substitution for another option in a manner that would qualify under the provisions of Section 409A or Section 424(a) of the Code.
6.2 Exercisability and Term of Options. Options shall be exercisable at such time or times, or upon such event or events, and subject to such terms, conditions, performance criteria and restrictions as shall be determined by the Committee and set forth in the Award Agreement evidencing such Option; provided, however, that (a) no Option shall be exercisable after the expiration of ten (10) years after the effective date of grant of such Option, (b) no Incentive Stock Option granted to a Ten Percent Owner shall be exercisable after the expiration of five (5) years after the effective date of grant of such Option and (c) no Option granted to an Employee who is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, shall be first exercisable until at least six (6) months following the date of grant of such Option (except in the event of such Employee’s death, disability or retirement, upon a Change in Control, or as otherwise permitted by the Worker Economic Opportunity Act). Subject to the foregoing, unless otherwise specified by the Committee in the grant of an Option, each Option shall terminate ten (10) years after the effective date of grant of the Option, unless earlier terminated in accordance with its provisions.
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6.3 Payment of Exercise Price.
(a) Forms of Consideration Authorized. Except as otherwise provided below, payment of the exercise price for the number of shares or units of Common Equity being purchased pursuant to any Option shall be made (i) in cash, by check or in cash equivalent; (ii) if permitted by the Committee and subject to the limitations contained in Section 6.3(b), by means of (1) a Cashless Exercise, (2) a Stock Tender Exercise or (3) a Net Exercise (for Nonstatutory Stock Options); (iii) by such other consideration as may be approved by the Committee from time to time to the extent permitted by applicable law, or (iv) if permitted by the Committee, by any combination thereof. The Committee may at any time or from time to time grant Options which do not permit all of the foregoing forms of consideration to be used in payment of the exercise price or which otherwise restrict one or more forms of consideration.
(b) Limitations on Forms of Consideration.
(i) Cashless Exercise. A “Cashless Exercise” means the delivery of a properly executed notice of exercise together with irrevocable instructions to a broker providing for the assignment to the Company of the proceeds of a sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option (including, without limitation, through an exercise complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System). The Company reserves, at any and all times, the right, in the Company’s sole and absolute discretion, to establish, decline to approve or terminate any program or procedures for the exercise of Options by means of a Cashless Exercise, including with respect to one or more Participants specified by the Company notwithstanding that such program or procedures may be available to other Participants.
(ii) Stock Tender Exercise. A “Stock Tender Exercise” means the delivery of a properly executed exercise notice accompanied by a Participant’s tender to the Company, or attestation to the ownership, in a form acceptable to the Company of whole shares or units of Common Equity owned by the Participant having a Fair Market Value that does not exceed the aggregate exercise price for the shares with respect to which the Option is exercised. A Stock Tender Exercise shall not be permitted if it would constitute a violation of the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock. If required by the Company, an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares or units of Common Equity unless such shares either have been owned by the Participant for a period of time required by the Company (and not used for another option exercise by attestation during such period) or were not acquired, directly or indirectly, from the Company.
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(iii) Net Exercise. A “Net Exercise” means the delivery of a properly executed exercise notice followed by a procedure pursuant to which (1) the Company will reduce the number of shares otherwise issuable to a Participant upon the exercise of an Option by the largest whole number of shares having a Fair Market Value that does not exceed the aggregate exercise price for the shares with respect to which the Option is exercised, and (2) the Participant shall pay to the Company in cash the remaining balance of such aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued.
6.4 Effect of Termination of Service.
(a) Option Exercisability. Subject to earlier termination of the Option as otherwise provided by this Plan and unless otherwise provided by the Committee or in an Award Agreement, an Option shall be exercisable after the Participant’s termination of Service to the extent it is then vested only during the applicable time period specified below, or if applicable, such other period provided in the applicable Award Agreement or other written agreement between the Participant and the Company; provided however, in no event may such Option be exercised after expiration of its maximum permitted term as set forth in the Award Agreement evidencing such Option or any earlier date the Option is terminated in connection with a Change in Control (the “Option Expiration Date”), and thereafter shall terminate if not exercised during such period.
(i) Disability. If the Participant’s Service terminates because of the Disability of the Participant, the Option, to the extent unexercised and exercisable for vested shares on the date on which the Participant’s Service terminated, may be exercised by the Participant (or the Participant’s guardian or legal representative) at any time prior to the expiration of twelve (12) months after the date on which the Participant’s Service terminated.
(ii) Death. If the Participant’s Service terminates because of the death of the Participant, the Option, to the extent unexercised and exercisable for vested shares on the date on which the Participant’s Service terminated, may be exercised by the Participant’s legal representative or other person who acquired the right to exercise the Option by reason of the Participant’s death at any time prior to the expiration of twelve (12) months after the date on which the Participant’s Service terminated. The Participant’s Service shall be deemed to have terminated on account of death if the Participant dies within three (3) months after the Participant’s termination of Service for any reason other than Cause.
(iii) Termination for Cause. Notwithstanding any other provision of the Plan to the contrary, if the Participant’s Service is terminated for Cause or if, following the Participant’s termination of Service and during any period in which the Option otherwise would remain exercisable, the Participant engages in any act that would constitute Cause, the Option shall terminate in its entirety and cease to be exercisable immediately upon such termination of Service or act.
(iv) Other Termination of Service. If the Participant’s Service terminates for any reason, except Disability, death or Cause, the Option, to the extent unexercised and exercisable for vested shares on the date on which the Participant’s Service terminated, may be exercised by the Participant at any time prior to the expiration of three (3) months after the date on which the Participant’s Service terminated.
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(b) Extension if Exercise Prevented by Law. Notwithstanding the foregoing, other than termination of Service for Cause, if the exercise of an Option within the Post-Termination Exercise Period is prevented by the provisions of Section 14 below or other applicable law, the Option shall remain exercisable until the later of (i) thirty (30) days after the date such exercise first would no longer be prevented by such provisions or (ii) the end of the applicable Post-Termination Exercise Period, but in any event no later than the Option Expiration Date.
6.5 Transferability of Options. During the lifetime of the Participant, an Option shall be exercisable only by the Participant or the Participant’s guardian or legal representative. An Option shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution. Notwithstanding the foregoing, to the extent permitted by the Committee, in its discretion, and set forth in the Award Agreement evidencing such Option, an Option shall be assignable or transferable subject to the applicable limitations, if any, described in the General Instructions to Form S-8 under the Securities Act or, in the case of an Incentive Stock Option, only as permitted by applicable regulations under Section 421 of the Code in a manner that does not disqualify such Option as an Incentive Stock Option.
7. STOCK APPRECIATION RIGHTS.
Stock Appreciation Rights shall be evidenced by Award Agreements specifying the number of shares or units of Common Equity subject to the Award, in such form as the Committee shall establish. Such Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:
7.1 Types of SARs Authorized. SARs may be granted in tandem with all or any portion of a related Option (a “Tandem SAR”) or may be granted independently of any Option (a “Freestanding SAR”). A Tandem SAR may only be granted concurrently with the grant of the related Option.
7.2 Exercise Price. The exercise price for each SAR shall be established in the discretion of the Committee; provided, however, that (a) the exercise price per share subject to a Tandem SAR shall be the exercise price per share under the related Option and (b) the exercise price per share subject to a Freestanding SAR shall be not less than the Fair Market Value of a share or unit of Common Equity on the effective date of grant of the SAR. Notwithstanding the foregoing, an SAR may be granted with an exercise price lower than the minimum exercise price set forth above if such SAR is granted pursuant to an assumption or substitution for another stock appreciation right in a manner that would qualify under the provisions of Section 409A.
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7.3 Exercisability and Term of SARs.
(a) Tandem SARs. Tandem SARs shall be exercisable only at the time and to the extent, and only to the extent, that the related Option is exercisable, subject to such provisions as the Committee may specify where the Tandem SAR is granted with respect to less than the full number of shares or units of Common Equity subject to the related Option. The Committee may, in its discretion, provide in any Award Agreement evidencing a Tandem SAR that such SAR may not be exercised without the advance approval of the Company and, if such approval is not given, then the Option shall nevertheless remain exercisable in accordance with its terms. A Tandem SAR shall terminate and cease to be exercisable no later than the date on which the related Option expires or is terminated or canceled. Upon the exercise of a Tandem SAR with respect to some or all of the shares subject to such SAR, the related Option shall be canceled automatically as to the number of shares with respect to which the Tandem SAR was exercised. Upon the exercise of an Option related to a Tandem SAR as to some or all of the shares subject to such Option, the related Tandem SAR shall be canceled automatically as to the number of shares with respect to which the related Option was exercised.
(b) Freestanding SARs. Freestanding SARs shall be exercisable at such time or times, or upon such event or events, and subject to such terms, conditions, performance criteria and restrictions as shall be determined by the Committee and set forth in the Award Agreement evidencing such SAR; provided, however, that (i) no Freestanding SAR shall be exercisable after the expiration of ten (10) years after the effective date of grant of such SAR and (ii) no Freestanding SAR granted to an Employee who is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, shall be first exercisable until at least six (6) months following the date of grant of such SAR (except in the event of such Employee’s death, disability or retirement, upon a Change in Control, or as otherwise permitted by the Worker Economic Opportunity Act). Subject to the foregoing, unless otherwise specified by the Committee in the grant of a Freestanding SAR, each Freestanding SAR shall terminate ten (10) years after the effective date of grant of the SAR, unless earlier terminated in accordance with its provisions.
7.4 Exercise of SARs. Upon the exercise (or deemed exercise pursuant to Section 7.5) of an SAR, the Participant (or the Participant’s legal representative or other person who acquired the right to exercise the SAR by reason of the Participant’s death) shall be entitled to receive payment of an amount for each share with respect to which the SAR is exercised equal to the excess, if any, of the Fair Market Value of a share or unit of Common Equity on the date of exercise of the SAR over the exercise price. Payment of such amount shall be made (a) in the case of a Tandem SAR, solely in shares or units of Common Equity in a lump sum upon the date of exercise of the SAR and (b) in the case of a Freestanding SAR, in cash, shares or units of Common Equity, or any combination thereof as determined by the Committee and set forth in the Award Agreement, in a lump sum upon the date of exercise of the SAR. When payment is to be made in shares or units of Common Equity, the number of shares to be issued shall be determined on the basis of the Fair Market Value of a share or unit of Common Equity on the date of exercise of the SAR. For purposes of Section 7, an SAR shall be deemed exercised on the date on which the Company receives notice of exercise from the Participant or as otherwise provided in Section 7.5.
7.5 Deemed Exercise of SARs. If, on the date on which an SAR would otherwise terminate or expire, the SAR by its terms remains exercisable immediately prior to such termination or expiration and, if so exercised, would result in a payment to the holder of such SAR, then any portion of such SAR which has not previously been exercised shall automatically be deemed to be exercised as of such date with respect to such portion. The Company may elect to discontinue the deemed exercise of SARs pursuant to this Section 7.5 at any time upon notice to a Participant or to apply the deemed exercise feature only to certain groups of Participants. The deemed exercise of a SAR pursuant to this Section 7.5 shall apply only to a SAR that has been timely accepted by a Participant under procedures specified by the Company from time to time.
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7.6 Effect of Termination of Service. Subject to earlier termination of the SAR as otherwise provided herein and unless otherwise provided by the Committee or in an Award Agreement, an SAR shall be exercisable after a Participant’s termination of Service only to the extent and during the applicable time period determined in accordance with Section 6.4 (treating the SAR as if it were an Option) and thereafter shall terminate.
7.7 Transferability of SARs. During the lifetime of the Participant, an SAR shall be exercisable only by the Participant or the Participant’s guardian or legal representative. An SAR shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution. Notwithstanding the foregoing, to the extent permitted by the Committee, in its discretion, and set forth in the Award Agreement evidencing such Award, a Tandem SAR related to a Nonstatutory Stock Option or a Freestanding SAR shall be assignable or transferable subject to the applicable limitations, if any, described in the General Instructions to Form S-8 under the Securities Act.
8. RESTRICTED STOCK AWARDS.
Restricted Stock Awards shall be evidenced by Award Agreements specifying whether the Award is a Restricted Stock Bonus or a Restricted Stock Purchase Right and the number of shares or units of Common Equity subject to the Award, in such form as the Committee shall establish. Such Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:
8.1 Types of Restricted Stock Awards Authorized. Restricted Stock Awards may be granted in the form of either a Restricted Stock Bonus or a Restricted Stock Purchase Right. Restricted Stock Awards may be granted upon such conditions as the Committee shall determine, including, without limitation, upon the attainment of one or more Performance Goals described in Section 10.4. If either the grant of or satisfaction of Vesting Conditions applicable to a Restricted Stock Award is to be contingent upon the attainment of one or more Performance Goals, the Committee shall follow procedures substantially equivalent to those set forth in Sections 10.3 through 10.5(a).
8.2 Purchase Price. The purchase price for shares or units of Common Equity issuable under each Restricted Stock Purchase Right shall be established by the Committee in its discretion. No monetary payment (other than applicable tax withholding) shall be required as a condition of receiving shares or units of Common Equity pursuant to a Restricted Stock Bonus, the consideration for which shall be services actually rendered to a Participating Company or for its benefit. Notwithstanding the foregoing, if required by applicable state corporate law, the Participant shall furnish consideration in the form of cash or past services rendered to a Participating Company or for its benefit having a value not less than the par value of the shares or units of Common Equity subject to a Restricted Stock Award.
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8.3 Purchase Period. A Restricted Stock Purchase Right shall be exercisable within a period established by the Committee, which shall in no event exceed thirty (30) days from the effective date of the grant of the Restricted Stock Purchase Right.
8.4 Payment of Purchase Price. Except as otherwise provided below, payment of the purchase price for the number of shares or units of Common Equity being purchased pursuant to any Restricted Stock Purchase Right shall be made (a) in cash, by check or in cash equivalent, (b) by such other consideration as may be approved by the Committee from time to time to the extent permitted by applicable law, or (c) by any combination thereof.
8.5 Vesting and Restrictions on Transfer. Shares issued pursuant to any Restricted Stock Award may (but need not) be made subject to Vesting Conditions based upon the satisfaction of such Service requirements, conditions, restrictions or performance criteria, including, without limitation, Performance Goals as described in Section 10.4, as shall be established by the Committee and set forth in the Award Agreement evidencing such Award. During any period in which shares acquired pursuant to a Restricted Stock Award remain subject to Vesting Conditions, such shares may not be sold, exchanged, transferred, pledged, assigned or otherwise disposed of other than pursuant to an Ownership Change Event or as provided in Section 8.8. The Committee, in its discretion, may provide in any Award Agreement evidencing a Restricted Stock Award that, if the satisfaction of Vesting Conditions with respect to any shares subject to such Restricted Stock Award would otherwise occur on a day on which the sale of such shares would violate the provisions of the Trading Compliance Policy, then satisfaction of the Vesting Conditions automatically shall be determined on the next trading day on which the sale of such shares would not violate the Trading Compliance Policy. Upon request by the Company, each Participant shall execute any agreement evidencing such transfer restrictions prior to the receipt of shares or units of Common Equity hereunder and shall promptly present to the Company any and all certificates representing shares or units of Common Equity acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions.
8.6 Voting Rights; Dividends and Distributions. Except as provided in this Section, Section 8.5 and any Award Agreement, during any period in which shares acquired pursuant to a Restricted Stock Award remain subject to Vesting Conditions, the Participant shall have all of the rights of a stockholder of the Company holding shares or units of Common Equity, including the right to vote such shares and to receive all dividends and other distributions paid with respect to such shares; provided, however, that if so determined by the Committee and provided by the Award Agreement, such dividends and distributions shall be subject to the same Vesting Conditions as the shares subject to the Restricted Stock Award with respect to which such dividends or distributions were paid, and otherwise shall be paid no later than the end of the calendar year in which such dividends or distributions are paid to stockholders (or, if later, the 15th day of the third month following the date such dividends or distributions are paid to stockholders). In the event of a dividend or distribution paid in shares or units of Common Equity or other property or any other adjustment made upon a change in the capital structure of the Company as described in Section 4.3, any and all new, substituted or additional securities or other property (other than regular, periodic cash dividends) to which the Participant is entitled by reason of the Participant’s Restricted Stock Award shall be immediately subject to the same Vesting Conditions as the shares subject to the Restricted Stock Award with respect to which such dividends or distributions were paid or adjustments were made.
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8.7 Effect of Termination of Service. Unless otherwise provided by the Committee in the Award Agreement evidencing a Restricted Stock Award, if a Participant’s Service terminates for any reason, whether voluntary or involuntary (including the Participant’s death or disability), then (a) the Company shall have the option to repurchase for the purchase price paid by the Participant any shares acquired by the Participant pursuant to a Restricted Stock Purchase Right which remain subject to Vesting Conditions as of the date of the Participant’s termination of Service and (b) the Participant shall forfeit to the Company any shares acquired by the Participant pursuant to a Restricted Stock Bonus which remain subject to Vesting Conditions as of the date of the Participant’s termination of Service. The Company shall have the right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company.
8.8 Nontransferability of Restricted Stock Award Rights. Rights to acquire shares or units of Common Equity pursuant to a Restricted Stock Award shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or the laws of descent and distribution. All rights with respect to a Restricted Stock Award granted to a Participant hereunder shall be exercisable during his or her lifetime only by such Participant or the Participant’s guardian or legal representative.
9. RESTRICTED STOCK UNITS.
Restricted Stock Unit Awards shall be evidenced by Award Agreements specifying the number of Restricted Stock Units subject to the Award, in such form as the Committee shall establish. Such Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:
9.1 Grant of Restricted Stock Unit Awards. Restricted Stock Unit Awards may be granted upon such conditions as the Committee shall determine, including, without limitation, upon the attainment of one or more Performance Goals described in Section 10.4. If either the grant of a Restricted Stock Unit Award or the Vesting Conditions with respect to such Award is to be contingent upon the attainment of one or more Performance Goals, the Committee shall follow procedures substantially equivalent to those set forth in Sections 10.3 through 10.5(a).
9.2 Purchase Price. No monetary payment (other than applicable tax withholding, if any) shall be required as a condition of receiving a Restricted Stock Unit Award, the consideration for which shall be services actually rendered to a Participating Company or for its benefit. Notwithstanding the foregoing, if required by applicable state corporate law, the Participant shall furnish consideration in the form of cash or past services rendered to a Participating Company or for its benefit having a value not less than the par value of the shares or units of Common Equity issued upon settlement of the Restricted Stock Unit Award.
9.3 Vesting. Restricted Stock Unit Awards may (but need not) be made subject to Vesting Conditions based upon the satisfaction of such Service requirements, conditions, restrictions or performance criteria, including, without limitation, Performance Goals as described in Section 10.4, as shall be established by the Committee and set forth in the Award Agreement evidencing such Award.
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9.4 Voting Rights, Dividend Equivalent Rights and Distributions. Participants shall have no voting rights with respect to shares or units of Common Equity represented by Restricted Stock Units until the date of the issuance of such shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). However, the Committee, in its discretion, may provide in the Award Agreement evidencing any Restricted Stock Unit Award that the Participant shall be entitled to Dividend Equivalent Rights with respect to the payment of cash dividends on Common Equity during the period beginning on the date such Award is granted and ending, with respect to each share subject to the Award, on the earlier of the date the Award is settled or the date on which it is terminated. Dividend Equivalent Rights, if any, shall be paid by crediting the Participant with a cash amount or with additional whole Restricted Stock Units as of the date of payment of such cash dividends on Common Equity, as determined by the Committee. The number of additional Restricted Stock Units (rounded to the nearest whole number), if any, to be credited shall be determined by dividing (a) the amount of cash dividends paid on the dividend payment date with respect to the number of shares or units of Common Equity represented by the Restricted Stock Units previously credited to the Participant by (b) the Fair Market Value per share or unit of Common Equity on such date. If so determined by the Committee and provided by the Award Agreement, such cash amount or additional Restricted Stock Units shall be subject to the same terms and conditions (including vesting terms) and shall be settled in the same manner and at the same time as the Restricted Stock Units originally subject to the Restricted Stock Unit Award. In the event of a dividend or distribution paid in shares or units of Common Equity or other property or any other adjustment made upon a change in the capital structure of the Company as described in Section 4.3, appropriate adjustments shall be made in the Participant’s Restricted Stock Unit Award so that it represents the right to receive upon settlement any and all new, substituted or additional securities or other property (other than regular, periodic cash dividends) to which the Participant would be entitled by reason of the shares or units of Common Equity issuable upon settlement of the Award, and all such new, substituted or additional securities or other property shall be immediately subject to the same Vesting Conditions as are applicable to the Award.
9.5 Effect of Termination of Service. Unless otherwise provided by the Committee and set forth in the Award Agreement evidencing a Restricted Stock Unit Award, if a Participant’s Service terminates for any reason, whether voluntary or involuntary (including the Participant’s death or disability), then the Participant shall forfeit to the Company any Restricted Stock Units pursuant to the Award which remain subject to Vesting Conditions as of the date of the Participant’s termination of Service.
9.6 Settlement of Restricted Stock Unit Awards. The Company shall issue to a Participant on the date on which Restricted Stock Units subject to the Participant’s Restricted Stock Unit Award vest or on such other date determined by the Committee in compliance with Section 409A, if applicable, and set forth in the Award Agreement one (1) share or unit of Common Equity (and/or any other new, substituted or additional securities or other property pursuant to an adjustment described in Section 9.4) for each Restricted Stock Unit then becoming vested or otherwise to be settled on such date, subject to the withholding of applicable taxes, if any. The Committee, in its discretion, may provide in any Award Agreement evidencing a Restricted Stock Unit Award that if the settlement date with respect to any shares issuable upon vesting of Restricted Stock Units would otherwise occur on a day on which the sale of such shares would violate the provisions of the Trading Compliance Policy, then the settlement date shall be deferred until the next trading day on which the sale of such shares would not violate the Trading Compliance Policy but in any event no later than the 15th day of the third calendar month following the year in which such Restricted Stock Units vest. If permitted by the Committee, the Participant may elect, consistent with the requirements of Section 409A, to defer receipt of all or any portion of the shares or units of Common Equity or other property otherwise issuable to the Participant pursuant to this Section, and such deferred issuance date(s) and amount(s) elected by the Participant shall be set forth in the Award Agreement or an Election (as defined in Section 15.2). Notwithstanding the foregoing, the Committee, in its discretion, may provide in an Award Agreement for settlement of any Restricted Stock Unit Award by payment to the Participant in cash of an amount equal to the Fair Market Value on the payment date of the shares or units of Common Equity or other property otherwise issuable to the Participant pursuant to this Section.
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9.7 Nontransferability of Restricted Stock Unit Awards. The right to receive shares pursuant to a Restricted Stock Unit Award shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution. All rights with respect to a Restricted Stock Unit Award granted to a Participant hereunder shall be exercisable during his or her lifetime only by such Participant or the Participant’s guardian or legal representative.
10. PERFORMANCE AWARDS.
Performance Awards shall be evidenced by Award Agreements in such form as the Committee shall establish. Such Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:
10.1 Types of Performance Awards Authorized. Performance Awards may be granted in the form of either Performance Shares or Performance Units. Each Award Agreement evidencing a Performance Award shall specify the number of Performance Shares or Performance Units subject thereto, the Performance Award Formula, the Performance Goal(s) and Performance Period applicable to the Award, and the other terms, conditions and restrictions of the Award.
10.2 Initial Value of Performance Shares and Performance Units. Unless otherwise provided by the Committee in granting a Performance Award, each Performance Share shall have an initial monetary value equal to the Fair Market Value of one (1) share or unit of Common Equity, subject to adjustment as provided in Section 4.3, on the effective date of grant of the Performance Share, and each Performance Unit shall have an initial monetary value established by the Committee at the time of grant. The final value payable to the Participant in settlement of a Performance Award determined on the basis of the applicable Performance Award Formula will depend on the extent to which Performance Goals established by the Committee are attained within the applicable Performance Period established by the Committee.
10.3 Establishment of Performance Period, Performance Goals and Performance Award Formula. In granting each Performance Award, the Committee shall establish in writing the applicable Performance Period, Performance Award Formula and one or more Performance Goals which, when measured at the end of the Performance Period, shall determine on the basis of the Performance Award Formula the final value of the Performance Award to be paid to the Participant. The Company shall notify each Participant granted a Performance Award of the terms of such Award, including the Performance Period, Performance Goal(s) and Performance Award Formula.
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10.4 Measurement of Performance Goals. Performance Goals shall be established by the Committee on the basis of targets to be attained (“Performance Targets”) with respect to one or more measures of objective or subjective business, financial, or individual performance or other performance criteria established by the Committee (each, a “Performance Measure”), subject to the following:
(a) Performance Measures. Unless otherwise determined by the Committee no later than the grant of the Performance Award, Performance Measures based on objective criteria shall be calculated in accordance with the Company’s financial statements, or, if such measures are not reported in the Company’s financial statements, they shall be calculated in accordance with generally accepted accounting principles, a method used generally in the Company’s industry, or in accordance with a methodology established by the Committee prior to the grant of the Performance Award. Performance Measures based on subjective criteria shall be determined on the basis established by the Committee in granting the Award. As specified by the Committee, Performance Measures may be calculated with respect to the Company and each Subsidiary Corporation consolidated therewith for financial reporting purposes, one or more Subsidiary Corporations or such division or other business unit of any of them selected by the Committee. Unless otherwise determined by the Committee no later than the grant of the Performance Award, the Performance Measures applicable to the Performance Award shall be calculated prior to the accrual of expense for any Performance Award for the same Performance Period and excluding the effect (whether positive or negative) on the Performance Measures of any change in accounting standards or any unusual or infrequently occurring event or transaction, as determined by the Committee, occurring after the establishment of the Performance Goals applicable to the Performance Award. Each such adjustment, if any, shall be made solely for the purpose of providing a consistent basis from period to period for the calculation of Performance Measures in order to prevent the dilution or enlargement of the Participant’s rights with respect to a Performance Award.
(b) Performance Targets. Performance Targets may include a minimum, maximum, target level and intermediate levels of performance, with the final value of a Performance Award determined under the applicable Performance Award Formula by the Performance Target level attained during the applicable Performance Period. A Performance Target may be stated as an absolute value, an increase or decrease in a value, or as a value determined relative to an index, budget or other standard selected by the Committee.
10.5 Settlement of Performance Awards.
(a) Determination of Final Value. As soon as practicable following the completion of the Performance Period applicable to a Performance Award, the Committee shall determine the extent to which the applicable Performance Goals have been attained and the resulting final value of the Award earned by the Participant and to be paid upon its settlement in accordance with the applicable Performance Award Formula.
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(b) Discretionary Adjustment of Award Formula. In its discretion, the Committee may, either at the time it grants a Performance Award or at any time thereafter, provide for the positive or negative adjustment of the Performance Award Formula applicable to a Performance Award to reflect such Participant’s individual performance in his or her position with the Company or such other factors as the Committee may determine.
(c) Effect of Leaves of Absence. Unless otherwise required by law or a Participant’s Award Agreement, payment of the final value, if any, of a Performance Award held by a Participant who has taken in excess of thirty (30) days in unpaid leaves of absence during a Performance Period shall be prorated on the basis of the number of days of the Participant’s Service during the Performance Period during which the Participant was not on an unpaid leave of absence.
(d) Notice to Participants. As soon as practicable following the Committee’s determination in accordance with Sections 10.5(a) and (b), the Company shall notify each Participant of the determination of the Committee.
(e) Payment in Settlement of Performance Awards. As soon as practicable following the Committee’s determination in accordance with Sections 10.5(a) and (b), but in any event within the Short-Term Deferral Period described in Section 15.1 (except as otherwise provided below or consistent with the requirements of Section 409A), payment shall be made to each eligible Participant (or such Participant’s legal representative or other person who acquired the right to receive such payment by reason of the Participant’s death) of the final value of the Participant’s Performance Award. Payment of such amount shall be made in cash, shares or units of Common Equity, or a combination thereof as determined by the Committee and set forth in the Award Agreement. Unless otherwise provided in the Award Agreement evidencing a Performance Award, payment shall be made in a lump sum. If permitted by the Committee, the Participant may elect, consistent with the requirements of Section 409A, to defer receipt of all or any portion of the payment to be made to the Participant pursuant to this Section, and such deferred payment date(s) elected by the Participant shall be set forth in the Award Agreement or an Election. If any payment is to be made on a deferred basis, the Committee may, but shall not be obligated to, provide for the payment during the deferral period of Dividend Equivalent Rights or interest.
(f) Provisions Applicable to Payment in Shares. If payment is to be made in shares or units of Common Equity, the number of such shares shall be determined by dividing the final value of the Performance Award by the Fair Market Value of a share or unit of Common Equity determined by the method specified in the Award Agreement. Shares or units of Common Equity issued in payment of any Performance Award may be fully vested and freely transferable shares or may be shares or units of Common Equity subject to Vesting Conditions as provided in Section 8.5. Any shares subject to Vesting Conditions shall be evidenced by an appropriate Award Agreement and shall be subject to the provisions of Sections 8.5 through 8.8 above.
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10.6 Voting Rights; Dividend Equivalent Rights and Distributions. Participants shall have no voting rights with respect to shares or units of Common Equity represented by Performance Share Awards until the date of the issuance of such shares, if any (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). However, the Committee, in its discretion, may provide in the Award Agreement evidencing any Performance Share Award that the Participant shall be entitled to Dividend Equivalent Rights with respect to the payment of cash dividends on Common Equity during the period beginning on the date the Award is granted and ending, with respect to each share subject to the Award, on the earlier of the date on which the Performance Shares are settled or the date on which they are forfeited. Such Dividend Equivalent Rights, if any, shall be credited to the Participant either in cash or in the form of additional whole Performance Shares as of the date of payment of such cash dividends on Common Equity, as determined by the Committee. The number of additional Performance Shares (rounded to the nearest whole number), if any, to be so credited shall be determined by dividing (a) the amount of cash dividends paid on the dividend payment date with respect to the number of shares or units of Common Equity represented by the Performance Shares previously credited to the Participant by (b) the Fair Market Value per share or unit of Common Equity on such date. Dividend Equivalent Rights, if any, shall be accumulated and paid to the extent that the related Performance Shares become nonforfeitable. Settlement of Dividend Equivalent Rights may be made in cash, shares or units of Common Equity, or a combination thereof as determined by the Committee, and may be paid on the same basis as settlement of the related Performance Share as provided in Section 10.5. Dividend Equivalent Rights shall not be paid with respect to Performance Units. In the event of a dividend or distribution paid in shares or units of Common Equity or other property or any other adjustment made upon a change in the capital structure of the Company as described in Section 4.3, appropriate adjustments shall be made in the Participant’s Performance Share Award so that it represents the right to receive upon settlement any and all new, substituted or additional securities or other property (other than regular, periodic cash dividends) to which the Participant would be entitled by reason of the shares or units of Common Equity issuable upon settlement of the Performance Share Award, and all such new, substituted or additional securities or other property shall be immediately subject to the same Performance Goals as are applicable to the Award.
10.7 Effect of Termination of Service. Unless otherwise provided by the Committee and set forth in the Award Agreement evidencing a Performance Award, the effect of a Participant’s termination of Service on the Performance Award shall be as follows:
(a) Death or Disability. If the Participant’s Service terminates because of the death or Disability of the Participant before the completion of the Performance Period applicable to the Performance Award, the final value of the Participant’s Performance Award shall be determined by the extent to which the applicable Performance Goals have been attained with respect to the entire Performance Period and shall be prorated based on the number of months of the Participant’s Service during the Performance Period. Payment shall be made following the end of the Performance Period in any manner permitted by Section 10.5.
(b) Other Termination of Service. If the Participant’s Service terminates for any reason except death or Disability before the completion of the Performance Period applicable to the Performance Award, such Award shall be forfeited in its entirety; provided, however, that in the event of an involuntary termination of the Participant’s Service, the Committee, in its discretion, may waive the automatic forfeiture of all or any portion of any such Award and determine the final value of the Performance Award in the manner provided by Section 10.7(a). Payment of any amount pursuant to this Section shall be made following the end of the Performance Period in any manner permitted by Section 10.5.
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10.8 Nontransferability of Performance Awards. Prior to settlement in accordance with the provisions of the Plan, no Performance Award shall be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution. All rights with respect to a Performance Award granted to a Participant hereunder shall be exercisable during his or her lifetime only by such Participant or the Participant’s guardian or legal representative.
11. CASH-BASED AWARDS AND OTHER COMMON EQUITY-BASED AWARDS.
Cash-Based Awards and Other Common Equity-Based Awards shall be evidenced by Award Agreements in such form as the Committee shall establish. Such Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:
11.1 Grant of Cash-Based Awards. Subject to the provisions of the Plan, the Committee, at any time and from time to time, may grant Cash-Based Awards to Participants in such amounts and upon such terms and conditions, including the achievement of performance criteria, as the Committee may determine.
11.2 Grant of Other Common Equity-Based Awards. The Committee may grant other types of equity-based or equity-related Awards not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted securities, stock-equivalent units, stock appreciation units, securities or debentures convertible into common stock or other forms determined by the Committee) in such amounts and subject to such terms and conditions as the Committee shall determine. Other Common Equity-Based Awards may be made available as a form of payment in the settlement of other Awards or as payment in lieu of compensation to which a Participant is otherwise entitled. Other Common Equity-Based Awards may involve the transfer of actual shares or units of Common Equity to Participants, or payment in cash or otherwise of amounts based on the value of Common Equity and may include, without limitation, Awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than the United States.
11.3 Value of Cash-Based and Other Common Equity-Based Awards. Each Cash-Based Award shall specify a monetary payment amount or payment range as determined by the Committee. Each Other Common Equity-Based Award shall be expressed in terms of shares or units of Common Equity or units based on such shares or units of Common Equity, as determined by the Committee. The Committee may require the satisfaction of such Service requirements, conditions, restrictions or performance criteria, including, without limitation, Performance Goals as described in Section 10.4, as shall be established by the Committee and set forth in the Award Agreement evidencing such Award. If the Committee exercises its discretion to establish performance criteria, the final value of Cash-Based Awards or Other Common Equity-Based Awards that will be paid to the Participant will depend on the extent to which the performance criteria are met.
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11.4 Payment or Settlement of Cash-Based Awards and Other Common Equity-Based Awards. Payment or settlement, if any, with respect to a Cash-Based Award or an Other Common Equity-Based Award shall be made in accordance with the terms of the Award, in cash, shares or units of Common Equity or other securities or any combination thereof as the Committee determines and set forth in the Award Agreement. To the extent applicable, payment or settlement with respect to each Cash-Based Award and Other Common Equity-Based Award shall be made in compliance with the requirements of Section 409A.
11.5 Voting Rights; Dividend Equivalent Rights and Distributions. Participants shall have no voting rights with respect to shares or units of Common Equity represented by Other Common Equity-Based Awards until the date of the issuance of such shares or units of Common Equity (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), if any, in settlement of such Award. However, the Committee, in its discretion, may provide in the Award Agreement evidencing any Other Common Equity-Based Award that the Participant shall be entitled to Dividend Equivalent Rights with respect to the payment of cash dividends on Common Equity during the period beginning on the date such Award is granted and ending, with respect to each share subject to the Award, on the earlier of the date the Award is settled or the date on which it is terminated. Such Dividend Equivalent Rights, if any, shall be paid in accordance with the provisions set forth in Section 9.4. Dividend Equivalent Rights shall not be granted with respect to Cash-Based Awards. In the event of a dividend or distribution paid in shares or units of Common Equity or other property or any other adjustment made upon a change in the capital structure of the Company as described in Section 4.3, appropriate adjustments shall be made in the Participant’s Other Common Equity-Based Award so that it represents the right to receive upon settlement any and all new, substituted or additional securities or other property (other than regular, periodic cash dividends) to which the Participant would be entitled by reason of the shares or units of Common Equity issuable upon settlement of such Award, and all such new, substituted or additional securities or other property shall be immediately subject to the same Vesting Conditions and performance criteria, if any, as are applicable to the Award.
11.6 Effect of Termination of Service. Each Award Agreement evidencing a Cash-Based Award or Other Common Equity-Based Award shall set forth the extent to which the Participant shall have the right to retain such Award following termination of the Participant’s Service. Such provisions shall be determined in the discretion of the Committee, need not be uniform among all Cash-Based Awards or Other Common Equity-Based Awards, and may reflect distinctions based on the reasons for termination, subject to the requirements of Section 409A, if applicable.
11.7 Nontransferability of Cash-Based Awards and Other Common Equity-Based Awards. Prior to the payment or settlement of a Cash-Based Award or Other Common Equity-Based Award, the Award shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution. The Committee may impose such additional restrictions on any shares or units of Common Equity issued in settlement of Cash-Based Awards and Other Common Equity-Based Awards as it may deem advisable, including, without limitation, minimum holding period requirements, restrictions under applicable federal securities laws, under the requirements of any stock exchange or market upon which such shares or units of Common Equity are then listed and/or traded, or under any state securities laws or foreign law applicable to such shares or units of Common Equity.
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12. STANDARD FORMS OF AWARD AGREEMENT.
12.1 Award Agreements. Each Award shall comply with and be subject to the terms and conditions set forth in the appropriate form of Award Agreement approved by the Committee and as amended from time to time. No Award or purported Award shall be a valid and binding obligation of the Company unless evidenced by a Company-executed Award Agreement, which execution may be evidenced by electronic means.
12.2 Authority to Vary Terms. The Committee shall have the authority from time to time to vary the terms of any standard form of Award Agreement either in connection with the grant or amendment of an individual Award or in connection with the authorization of a new standard form or forms; provided, however, that the terms and conditions of any such new, revised or amended standard form or forms of Award Agreement are not inconsistent with the terms of the Plan.
13. CHANGE IN CONTROL.
13.1 Effect of Change in Control on Awards. In the event of a Change in Control, outstanding Awards shall be subject to the definitive agreement entered into by the Company in connection with the Change in Control. Subject to the requirements and limitations of Section 409A, if applicable, the following provisions will apply to Awards in the event of a Change in Control unless otherwise provided in the Award Agreement or any other written agreement between the Company or any Affiliate and the Participant or unless otherwise expressly provided by the Committee at the time of grant of an Award. In the event of a Change in Control, then, notwithstanding any other provision of the Plan, the Committee may take one or more of the following actions with respect to Awards, contingent upon the closing or completion of the Change in Control. The Committee need not take the same action or actions with respect to all Awards or portions thereof or with respect to all Participants and in each case may make such determination in its discretion and without the consent of any Participant (unless otherwise provided in the Award Agreement or any other written agreement between the Company or any Affiliate and the Participant or unless otherwise expressly provided by the Committee at the time of grant of an Award).
(a) Accelerated Vesting. The Committee may take such action as it deems appropriate to provide for acceleration of the exercisability, vesting and/or settlement in connection with a Change in Control of each or any outstanding Award or portion thereof and shares acquired pursuant thereto upon such conditions, including termination of the Participant’s Service prior to, upon, or following the Change in Control, and to such extent as the Committee determines.
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(b) Assumption, Continuation or Substitution. The Committee may arrange for the surviving, continuing, successor, or purchasing corporation or other business entity or parent thereof, as the case may be (the “Acquiror”), to assume or continue the Company’s rights and obligations under each or any Award or portion thereof outstanding immediately prior to the Change in Control or substitute for each or any such outstanding Award or portion thereof a substantially equivalent award with respect to the Acquiror’s stock, as applicable, with appropriate adjustments in accordance with Section 4.3. For purposes of this Section, if so determined by the Committee in its discretion, an Award denominated in shares or units of Common Equity shall be deemed assumed if, following the Change in Control, the Award confers the right to receive, subject to the terms and conditions of the Plan and the applicable Award Agreement, for each share or unit of Common Equity subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash, other securities or property or a combination thereof) to which a holder of a share or unit of Common Equity on the effective date of the Change in Control was entitled (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares or units of Common Equity); provided, however, that if such consideration is not solely common stock of the Acquiror, the Committee may provide for the consideration to be received upon the exercise or settlement of the Award, for each share or unit of Common Equity subject to the Award, to consist solely of common stock of the Acquiror equal in Fair Market Value to the per share consideration received by holders of Common Equity pursuant to the Change in Control. Any Award or portion thereof which is not assumed, continued, or substituted by the Acquiror in connection with the Change in Control nor exercised prior to the time of consummation of the Change in Control shall terminate and cease to be outstanding effective as of the time of consummation of the Change in Control.
(c) Assignment or Lapse of Reacquisition or Repurchase Rights. The Committee may arrange for the assignment of any reacquisition or repurchase rights held by the Company in respect of Common Equity issued pursuant to the Award to the Acquiror or arrange for the lapse, in whole or in part, of any reacquisition or repurchase rights held by the Company with respect to the Award.
(d) Cancellation. In its discretion, the Committee may cancel or arrange for the cancellation of the Award, to the extent not vested or not exercised prior to the effective time of the Change in Control, in exchange for no consideration ($0) or such consideration, if any, as determined by the Committee.
(e) Cash-Out of Outstanding Common Equity-Based Awards. The Committee may determine that, upon the occurrence of a Change in Control, each or any Award denominated in shares or units of Common Equity or portion thereof outstanding immediately prior to the Change in Control and not previously exercised shall be canceled in exchange for a payment with respect to each vested share (and each unvested share, if so determined by the Committee) of Common Equity subject to such canceled Award in (i) cash, (ii) stock of the Company or of a corporation or other business entity a party to the Change in Control, or (iii) other property which, in any such case, shall be in an amount having a Fair Market Value equal to the Fair Market Value of the consideration to be paid per share or unit of Common Equity in the Change in Control, reduced (but not below zero) by the exercise or purchase price per share, if any, under such Award. In the event such determination is made by the Committee, an Award having an exercise or purchase price per share equal to or greater than the Fair Market Value of the consideration to be paid per share or unit of Common Equity in the Change in Control may be canceled without notice or payment of consideration to the holder thereof. Payment pursuant to this Section (reduced by applicable withholding taxes, if any) shall be made to Participants in respect of the vested portions of their canceled Awards as soon as practicable following the date of the Change in Control and in respect of the unvested portions of their canceled Awards in accordance with the vesting schedules applicable to such Awards or, if determined by the Committee and in compliance with Section 409A, as soon as practicable following the date of the Change in Control.
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(f) Adjustments and Earnouts. In making any determination pursuant to this Section 13.1 in the event of a Change in Control, the Committee may, in its discretion, determine that an Award shall or shall not be subject to the same post-closing purchase price adjustments, escrow terms, offset rights, holdback terms, earnouts and similar conditions as the other holders of the Company’s Common Equity, subject to any limitations or reductions as may be necessary to comply with Section 409A or Section 424 of the Code.
13.2 Effect of Change in Control on Nonemployee Director Awards. Subject to the requirements and limitations of Section 409A, if applicable, including as provided by Section 15.4(f), in the event of a Change in Control, each outstanding Nonemployee Director Award shall become immediately exercisable and vested in full effective immediately prior to and contingent upon the Change in Control and, except to the extent assumed, continued or substituted for pursuant to Section 13.1(b) or otherwise restricted by Section 409A, shall be settled effective immediately prior to the time of consummation of the Change in Control if not exercised prior to the Change in Control.
13.3 Federal Excise Tax Under Section 4999 of the Code.
(a) Excess Parachute Payment. If any acceleration of vesting pursuant to an Award and any other payment or benefit received or to be received by a Participant would subject the Participant to any excise tax pursuant to Section 4999 of the Code due to the characterization of such acceleration of vesting, payment or benefit as an “excess parachute payment” under Section 280G of the Code, then, provided such election would not subject the Participant to taxation under Section 409A, the Participant may elect to reduce the amount of any acceleration of vesting called for under the Award in order to avoid such characterization.
(b) Determination by Tax Firm. To aid the Participant in making any election called for under Section 13.3(a), no later than the date of the occurrence of any event that might reasonably be anticipated to result in an “excess parachute payment” to the Participant as described in Section 13.3(a), the Company shall request a determination in writing by the professional firm engaged by the Company for general tax purposes, or, if the tax firm so engaged by the Company is serving as accountant or auditor for the Acquiror, the Company will appoint a nationally recognized tax firm to make the determinations required by this Section (the “Tax Firm”). As soon as practicable thereafter, the Tax Firm shall determine and report to the Company and the Participant the amount of such acceleration of vesting, payments and benefits which would produce the greatest after-tax benefit to the Participant. For the purposes of such determination, the Tax Firm may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and the Participant shall furnish to the Tax Firm such information and documents as the Tax Firm may reasonably request in order to make its required determination. The Company shall bear all fees and expenses the Tax Firm charges in connection with its services contemplated by this Section.
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14. COMPLIANCE WITH SECURITIES LAW.
The grant of Awards and the issuance of shares or units of Common Equity pursuant to any Award shall be subject to compliance with all applicable requirements of federal, state and foreign law with respect to such securities and the requirements of any stock exchange or market system upon which the Common Equity may then be listed. In addition, no Award may be exercised or shares issued pursuant to an Award unless (a) a registration statement under the Securities Act shall at the time of such exercise or issuance be in effect with respect to the shares issuable pursuant to the Award, or (b) in the opinion of legal counsel to the Company, the shares issuable pursuant to the Award may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares under the Plan shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a condition to issuance of any Common Equity, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company.
15. COMPLIANCE WITH SECTION 409A.
15.1 Awards Subject to Section 409A. The Company intends that Awards granted pursuant to the Plan shall either be exempt from or comply with Section 409A, and the Plan shall be so construed. The provisions of this Section 15 shall apply to any Award or portion thereof that constitutes or provides for payment of Section 409A Deferred Compensation. Such Awards may include, without limitation:
(a) A Nonstatutory Stock Option or SAR that includes any feature for the deferral of compensation other than the deferral of recognition of income until the later of (i) the exercise or disposition of the Award or (ii) the time the stock acquired pursuant to the exercise of the Award first becomes substantially vested.
(b) Any Restricted Stock Unit Award, Performance Award, Cash-Based Award or Other Common Equity-Based Award that either (i) provides by its terms for settlement of all or any portion of the Award at a time or upon an event that will or may occur later than the end of the Short-Term Deferral Period (as defined below) or (ii) permits the Participant granted the Award to elect one or more dates or events upon which the Award will be settled after the end of the Short-Term Deferral Period.
Subject to the provisions of Section 409A, the term “Short-Term Deferral Period” means the 2 1/2 month period ending on the later of (i) the 15th day of the third month following the end of the Participant’s taxable year in which the right to payment under the applicable portion of the Award is no longer subject to a substantial risk of forfeiture or (ii) the 15th day of the third month following the end of the Company’s taxable year in which the right to payment under the applicable portion of the Award is no longer subject to a substantial risk of forfeiture. For this purpose, the term “substantial risk of forfeiture” shall have the meaning provided by Section 409A.
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15.2 Deferral and/or Distribution Elections. Except as otherwise permitted or required by Section 409A and the Company, the following rules shall apply to any compensation deferral and/or payment elections (each, an “Election”) that may be permitted or required by the Committee pursuant to an Award providing Section 409A Deferred Compensation:
(a) Elections must be in writing and specify the amount of the payment in settlement of an Award being deferred, as well as the time and form of payment as permitted by this Plan.
(b) Elections shall be made by the end of the Participant’s taxable year prior to the year in which services commence for which an Award may be granted to the Participant.
(c) Elections shall continue in effect until a written revocation or change in Election is received by the Company, except that a written revocation or change in Election must be received by the Company prior to the last day for making the Election determined in accordance with paragraph (b) above or as permitted by Section 15.3.
15.3 Subsequent Elections. Except as otherwise permitted or required by Section 409A, any Award providing Section 409A Deferred Compensation which permits a subsequent Election to delay the payment or change the form of payment in settlement of such Award shall comply with the following requirements:
(a) No subsequent Election may take effect until at least twelve (12) months after the date on which the subsequent Election is made.
(b) Each subsequent Election related to a payment in settlement of an Award not described in Section 15.4(a)(ii), 15.4(a)(iii) or 15.4(a)(vi) must result in a delay of the payment for a period of not less than five (5) years from the date on which such payment would otherwise have been made.
(c) No subsequent Election related to a payment pursuant to Section 15.4(a)(vi) shall be made less than twelve (12) months before the date on which such payment would otherwise have been made.
(d) Subsequent Elections shall continue in effect until a written revocation or change in the subsequent Election is received by the Company, except that a written revocation or change in a subsequent Election must be received by the Company prior to the last day for making the subsequent Election determined in accordance the preceding paragraphs of this Section 15.3.
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15.4 Payment of Section 409A Deferred Compensation.
(a) Permissible Payments. Except as otherwise permitted or required by Section 409A, an Award providing Section 409A Deferred Compensation must provide for payment in settlement of the Award only upon one or more of the following:
(i) The Participant’s “separation from service” (as defined by Section 409A);
(ii) The Participant’s becoming “disabled” (as defined by Section 409A);
(iii) The Participant’s death;
(iv) A time or fixed schedule that is either (i) specified by the Committee upon the grant of an Award and set forth in the Award Agreement evidencing such Award or (ii) specified by the Participant in an Election complying with the requirements of Section 15.2 or 15.3, as applicable;
(v) A change in the ownership or effective control or the Company or in the ownership of a substantial portion of the assets of the Company determined in accordance with Section 409A; or
(vi) The occurrence of an “unforeseeable emergency” (as defined by Section 409A).
(b) Installment Payments. It is the intent of this Plan that any right of a Participant to receive installment payments (within the meaning of Section 409A) shall, for all purposes of Section 409A, be treated as a right to a series of separate payments.
(c) Required Delay in Payment to Specified Employee Pursuant to Separation from Service. Notwithstanding any provision of the Plan or an Award Agreement to the contrary, except as otherwise permitted by Section 409A, no payment pursuant to Section 15.4(a)(i) in settlement of an Award providing for Section 409A Deferred Compensation may be made to a Participant who is a “specified employee” (as defined by Section 409A) as of the date of the Participant’s separation from service before the date (the “Delayed Payment Date”) that is six (6) months after the date of such Participant’s separation from service, or, if earlier, the date of the Participant’s death. All such amounts that would, but for this paragraph, become payable prior to the Delayed Payment Date shall be accumulated and paid on the Delayed Payment Date.
(d) Payment Upon Disability. All distributions of Section 409A Deferred Compensation payable pursuant to Section 15.4(a)(ii) by reason of a Participant becoming disabled shall be paid in a lump sum or in periodic installments as established by the Participant’s Election. If the Participant has made no Election with respect to distributions of Section 409A Deferred Compensation upon becoming disabled, all such distributions shall be paid in a lump sum or commence upon the determination that the Participant has become disabled.
(e) Payment Upon Death. If a Participant dies before complete distribution of amounts payable upon settlement of an Award subject to Section 409A, such undistributed amounts shall be distributed to his or her beneficiary under the distribution method for death established by the Participant’s Election upon receipt by the Committee of satisfactory notice and confirmation of the Participant’s death. If the Participant has made no Election with respect to distributions of Section 409A Deferred Compensation upon death, all such distributions shall be paid in a lump sum upon receipt by the Committee of satisfactory notice and confirmation of the Participant’s death.
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(f) Payment Upon Change in Control. Notwithstanding any provision of the Plan or an Award Agreement to the contrary, to the extent that any amount constituting Section 409A Deferred Compensation would become payable under this Plan by reason of a Change in Control, such amount shall become payable only if the event constituting a Change in Control would also constitute a change in ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company within the meaning of Section 409A. Any Award which constitutes Section 409A Deferred Compensation and which would vest and otherwise become payable upon a Change in Control as a result of the failure of the Acquiror to assume, continue or substitute for such Award in accordance with Section 13.1(b) shall vest to the extent provided by such Award but shall be converted automatically at the effective time of such Change in Control into a right to receive, in cash on the date or dates such award would have been settled in accordance with its then existing settlement schedule (or as required by Section 15.4(c)), an amount or amounts equal in the aggregate to the intrinsic value of the Award at the time of the Change in Control.
(g) Payment Upon Unforeseeable Emergency. The Committee shall have the authority to provide in the Award Agreement evidencing any Award providing for Section 409A Deferred Compensation for payment pursuant to Section 15.4(a)(vi) in settlement of all or a portion of such Award in the event that a Participant establishes, to the satisfaction of the Committee, the occurrence of an unforeseeable emergency. In such event, the amount(s) distributed with respect to such unforeseeable emergency cannot exceed the amounts reasonably necessary to satisfy the emergency need plus amounts necessary to pay taxes reasonably anticipated as a result of such distribution(s), after taking into account the extent to which such emergency need is or may be relieved through reimbursement or compensation by insurance or otherwise, by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship) or by cessation of deferrals under the Award. All distributions with respect to an unforeseeable emergency shall be made in a lump sum upon the Committee’s determination that an unforeseeable emergency has occurred. The Committee’s decision with respect to whether an unforeseeable emergency has occurred and the manner in which, if at all, the payment in settlement of an Award shall be altered or modified, shall be final, conclusive, and not subject to approval or appeal.
(h) Prohibition of Acceleration of Payments. Notwithstanding any provision of the Plan or an Award Agreement to the contrary, this Plan does not permit the acceleration of the time or schedule of any payment under an Award providing Section 409A Deferred Compensation, except as permitted by Section 409A. The Company reserves the right in its discretion to accelerate the time or schedule of any payment under an Award providing Section 409A Deferred Compensation to the maximum extent permitted by Section 409A.
(i) No Representation Regarding Section 409A Compliance. Notwithstanding any other provision of the Plan, the Company makes no representation that Awards shall be exempt from or comply with Section 409A. No Participating Company shall be liable for any tax, penalty or interest imposed on a Participant by Section 409A.
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16. TAX WITHHOLDING.
16.1 Tax Withholding in General. The Company shall have the right to deduct from any and all payments made under the Plan, or to require the Participant, through payroll withholding, cash payment or otherwise, to make adequate provision for, the federal, state, local and foreign taxes (including social insurance), if any, required by law to be withheld by any Participating Company with respect to an Award or the shares acquired pursuant thereto. The Company shall have no obligation to deliver shares or units of Common Equity, to release shares or units of Common Equity from an escrow established pursuant to an Award Agreement, or to make any payment in cash under the Plan until the Participating Company Group’s tax withholding obligations have been satisfied by the Participant.
16.2 Withholding in or Directed Sale of Shares. The Company shall have the right, but not the obligation, to deduct from the shares or units of Common Equity issuable to a Participant upon the exercise or settlement of an Award, or to accept from the Participant the tender of, a number of whole shares or units of Common Equity having a Fair Market Value, as determined by the Company, equal to all or any part of the tax withholding obligations of any Participating Company. The Fair Market Value of any shares or units of Common Equity withheld or tendered to satisfy any such tax withholding obligations shall be determined by the Company in accordance with the Company’s withholding procedures and considering any accounting consequences or cost. The Company may require a Participant to direct a broker, upon the vesting, exercise or settlement of an Award, to sell a portion of the shares subject to the Award determined by the Company in its discretion to be sufficient to cover the tax withholding obligations of any Participating Company and to remit an amount equal to such tax withholding obligations to such Participating Company in cash.
17. AMENDMENT, SUSPENSION OR TERMINATION OF PLAN.
The Committee may amend, suspend or terminate the Plan at any time. However, without the approval of the Company’s stockholder(s), there shall be (a) no increase in the maximum aggregate number of shares or units of Common Equity that may be issued under the Plan (except by operation of the provisions of Sections 4.2 and 4.3, (b) no change in the class of persons eligible to receive Incentive Stock Options, and (c) no other amendment of the Plan that would require approval of the Company’s stockholder(s) under any applicable law, regulation or rule, including the rules of any stock exchange or quotation system upon which the Common Equity may then be listed or quoted. No amendment, suspension or termination of the Plan shall affect any then outstanding Award unless expressly provided by the Committee. Except as provided by the next sentence, no amendment, suspension or termination of the Plan may have a materially adverse effect on any then outstanding Award without the consent of the Participant. Notwithstanding any other provision of the Plan or any Award Agreement to the contrary, the Committee may, in its sole and absolute discretion and without the consent of any Participant, amend the Plan or any Award Agreement, to take effect retroactively or otherwise, as it deems necessary or advisable for the purpose of conforming the Plan or such Award Agreement to any present or future law, regulation or rule applicable to the Plan, including, but not limited to, Section 409A.
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18. MISCELLANEOUS PROVISIONS.
18.1 Repurchase Rights. Shares issued under the Plan may be subject to one or more repurchase options, or other conditions and restrictions as determined by the Committee in its discretion at the time the Award is granted. The Company shall have the right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company. Upon request by the Company, each Participant shall execute any agreement evidencing such transfer restrictions prior to the receipt of shares or units of Common Equity hereunder and shall promptly present to the Company any and all certificates representing shares or units of Common Equity acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions.
18.2 Forfeiture Events.
(a) The Committee may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, termination of Service for Cause or any act by a Participant, whether before or after termination of Service, that would constitute Cause for termination of Service, or any accounting restatement due to material noncompliance of the Company with any financial reporting requirements of securities laws as a result of which, and to the extent that, such reduction, cancellation, forfeiture, or recoupment is required by applicable securities laws. In addition, to the extent that claw-back or similar provisions applicable to Awards are required by applicable law, listing standards and/or policies adopted by the Company, Awards granted under the Plan shall be subject to such provisions.
(b) If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, any Participant who knowingly or through gross negligence engaged in the misconduct, or who knowingly or through gross negligence failed to prevent the misconduct, and any Participant who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, shall reimburse the Company for (i) the amount of any payment in settlement of an Award received by such Participant during the twelve- (12-) month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever first occurred) of the financial document embodying such financial reporting requirement, and (ii) any profits realized by such Participant from the sale of securities of the Company during such twelve- (12-) month period.
(c) No recovery of compensation pursuant to the foregoing provisions will constitute an event giving rise to a Participant’s right to voluntarily terminate employment upon a “resignation for good reason” or for a “constructive termination” or any similar term under any plan or agreement with the Company.
18.3 Provision of Information. Each Participant shall be given access to information concerning the Company equivalent to that information generally made available to holders of the Common Equity (other than the Parent Corporation).
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18.4 Electronic Delivery and Participation. Any reference herein or in an Award Agreement to a “written” agreement or document will include any agreement or document delivered electronically, filed publicly at www.sec.gov (or any successor website thereto) or posted on the Company’s intranet (or other shared electronic medium controlled by the Company to which the Participant has access). By accepting any Award, the Participant consents to receive documents by electronic delivery and to participate in the Plan through any on-line electronic system established and maintained by the Plan Administrator or another third party selected by the Plan Administrator. The form of delivery of any Common Equity (e.g., a stock certificate or electronic entry evidencing such shares) shall be determined by the Company.
18.5 Change in Time Commitment. In the event a Participant’s regular level of time commitment in the performance of his or her services for the Company and any Affiliates is reduced (for example, and without limitation, if the Participant is an Employee of the Company and the Employee has a change in status from a full-time Employee to a part-time Employee or takes an extended leave of absence) after the date of grant of any Award to the Participant, the Board may determine, to the extent permitted by Applicable Law, to (i) make a corresponding reduction in the number of shares, amount of cash, or other property subject to any portion of such Award that is scheduled to vest or become payable after the date of such change in time commitment, and (ii) in lieu of or in combination with such a reduction, extend the vesting or payment schedule applicable to such Award. In the event of any such reduction, the Participant will have no right with respect to any portion of the Award that is so reduced or extended.
18.6 Rights as Employee, Consultant or Director. No person, even though eligible pursuant to Section 5, shall have a right to be selected as a Participant, or, having been so selected, to be selected again as a Participant. Nothing in the Plan or any Award granted under the Plan shall confer on any Participant a right to remain an Employee, Consultant or Director or interfere with or limit in any way any right of a Participating Company to terminate the Participant’s Service at any time. To the extent that an Employee of a Participating Company other than the Company receives an Award under the Plan, that Award shall in no event be understood or interpreted to mean that the Company is the Employee’s employer or that the Employee has an employment relationship with the Company.
18.7 Rights as a Stockholder. A Participant shall have no rights as a stockholder with respect to any shares covered by an Award until the date of the issuance of such shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such shares are issued, except as provided in Section 4 or another provision of the Plan.
18.8 Delivery of Title to Shares. Subject to any governing rules or regulations, the Company shall issue or cause to be issued the shares or units of Common Equity acquired pursuant to an Award and shall deliver such shares to or for the benefit of the Participant by means of one or more of the following: (a) by delivering to the Participant evidence of book entry shares or units of Common Equity credited to the account of the Participant, (b) by depositing such shares or units of Common Equity for the benefit of the Participant with any broker with which the Participant has an account relationship, or (c) by delivering such shares or units of Common Equity to the Participant in certificate form.
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18.9 Fractional Shares. The Company shall not be required to issue fractional shares upon the exercise or settlement of any Award.
18.10 Provisions for Non-U.S. Participants. The Committee may modify Awards granted to Participants who are foreign nationals or employed outside the United States or establish subplans or procedures under the Plan to address differences in laws, rules, regulations or customs of such foreign jurisdictions with respect to tax, securities, currency, employee benefit or other matters.
18.11 Lock-Up Period. The Company may, at the request of any underwriter representative or otherwise, in connection with registering the offering of any Company securities under the Securities Act, prohibit Participants from, directly or indirectly, selling or otherwise transferring any share or unit of Common Equity or other Company securities during a period of up to 180 days following the effective date of a Company registration statement filed under the Securities Act, or such longer period as determined by the underwriter.
18.12 Data Privacy. As a condition for receiving any Award, each Participant explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of personal data as described in this Section by and among the Company and its Subsidiaries and affiliates exclusively for implementing, administering and managing the Participant’s participation in the Plan. The Company and its Subsidiaries and affiliates may hold certain personal information about a Participant, including the Participant’s name, address and telephone number; birthdate; social security, insurance number or other identification number; salary; nationality; job title(s); any shares or units of Common Equity held in the Company or its Subsidiaries and affiliates; and Award details, to implement, manage and administer the Plan and Awards (the “Data”). The Company and its Subsidiaries and affiliates may transfer the Data amongst themselves as necessary to implement, administer and manage a Participant’s participation in the Plan, and the Company and its Subsidiaries and affiliates may transfer the Data to third parties assisting the Company with Plan implementation, administration and management. These recipients may be located in the Participant’s country, or elsewhere, and the Participant’s country may have different data privacy laws and protections than the recipients’ country. By accepting an Award, each Participant authorizes such recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, to implement, administer and manage the Participant’s participation in the Plan, including any required Data transfer to a broker or other third party with whom the Company or the Participant may elect to deposit any shares or units of Common Equity. The Data related to a Participant will be held only as long as necessary to implement, administer, and manage the Participant’s participation in the Plan. A Participant may, at any time, view the Data that the Company holds regarding such Participant, request additional information about the storage and processing of the Data regarding such Participant, recommend any necessary corrections to the Data regarding the Participant or refuse or withdraw the consents in this Section 18.12 in writing, without cost, by contacting the local human resources representative. If the Participant refuses or withdraws the consents in this Section 18.12, the Company may cancel Participant’s ability to participate in the Plan and, in the Administrator’s discretion, the Participant may forfeit any outstanding Awards. For more information on the consequences of refusing or withdrawing consent, Participants may contact their local human resources representative.
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18.13 Retirement and Welfare Plans. Neither Awards made under this Plan nor shares or units of Common Equity or cash paid pursuant to such Awards may be included as “compensation” for purposes of computing the benefits payable to any Participant under any Participating Company’s retirement plans (both qualified and non-qualified) or welfare benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a Participant’s benefit. In addition, unless a written employment agreement or other service agreement specifically references Awards, a general reference to “benefits” or a similar term in such agreement shall not be deemed to refer to Awards granted hereunder.
18.14 Beneficiary Designation. Subject to local laws and procedures, each Participant may file with the Company a written designation of a beneficiary who is to receive any benefit under the Plan to which the Participant is entitled in the event of such Participant’s death before he or she receives any or all of such benefit. Each designation will revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. If a married Participant designates a beneficiary other than the Participant’s spouse, the effectiveness of such designation may be subject to the consent of the Participant’s spouse. If a Participant dies without an effective designation of a beneficiary who is living at the time of the Participant’s death, the Company will pay any remaining unpaid benefits to the Participant’s legal representative.
18.15 Severability. If any one or more of the provisions (or any part thereof) of this Plan shall be held invalid, illegal or unenforceable in any respect, such provision shall be modified so as to make it valid, legal and enforceable, and the validity, legality and enforceability of the remaining provisions (or any part thereof) of the Plan shall not in any way be affected or impaired thereby.
18.16 No Constraint on Corporate Action. Nothing in this Plan shall be construed to: (a) limit, impair, or otherwise affect the Company’s or another Participating Company’s right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or (b) limit the right or power of the Company or another Participating Company to take any action which such entity deems to be necessary or appropriate.
18.17 Unfunded Obligation. Participants shall have the status of general unsecured creditors of the Company. Any amounts payable to Participants pursuant to the Plan shall be considered unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974. No Participating Company shall be required to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments, which the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Participant account shall not create or constitute a trust or fiduciary relationship between the Committee or any Participating Company and a Participant, or otherwise create any vested or beneficial interest in any Participant or the Participant’s creditors in any assets of any Participating Company. The Participants shall have no claim against any Participating Company for any changes in the value of any assets which may be invested or reinvested by the Company with respect to the Plan.
18.18 Choice of Law. Except to the extent governed by applicable federal law, the validity, interpretation, construction and performance of the Plan and each Award Agreement shall be governed by the laws of the State of Delaware, without regard to its conflict of law rules.
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First Amendment
To
Quantum Leap Energy LLC
2024 Equity Incentive Plan
Background
A. Quantum Leap Energy LLC (the “Company”), maintains the Quantum Leap Energy LLC 2024 Equity Incentive Plan (the “Plan”). Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan.
B. The Plan was originally effective as of March 7, 2024, the date of the first closing with respect to the Company’s offering of convertible promissory notes with a stated interest rate of 6.0% for the first year and 8.0% thereafter.
C. The Plan currently authorizes the issuance of up to thirty percent (30%) of the Common Equity Deemed Outstanding as of the Effective Date, and the Company’s board of managers has determined that it is in the best interest of the Company and its sole member to amend the Plan to reduce the maximum aggregate number of shares or units of Common Equity that may be issued under the Plan to fifteen percent (15%) of the Common Equity Deemed Outstanding as of the date hereof.
Amendment
1. Section 4.1 of the Plan shall be deleted in its entirety and replaced with the following:
“4.1 Maximum Number of Shares Issuable. Subject to adjustment as provided in Sections 4.2 and 4.3, the maximum aggregate number of shares or units of Common Equity that may be issued under the Plan shall be fifteen percent (15%) of the Common Equity Deemed Outstanding as of the effective date of the First Amendment to the Plan.”
2. Except as set forth in this amendment, the Plan shall be unaffected hereby and shall remain in full force and effect.
The undersigned hereby certifies that the foregoing amendment to the Plan was duly approved and adopted and has executed this First Amendment to the Plan as of September , 2024.
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