The Company desires to grant a stock option for the purpose of providing you, as a key employee of the Company, with increased incentive to render services, to exert maximum effort for the business success of the Company and to strengthen your identification with the shareholders. The stock option will be subject to the terms specified in a separate Stock Option Agreement consistent with the Company’s stock option practices and the terms of the 2016 Stock Incentive Plan, the principal terms being as follows:
The option grant date will be the Effective Date. The option will be a non-qualified stock option to purchase 4,000,000 shares of the Company’s common stock. The exercise price will be the not less than the fair market value of the Company’s common stock as determined by the board on the Effective Date and the expiration date will be the tenth anniversary of the Effective Date. Subject to continued employment by the Company, the option shall vest and become exercisable as follows:
25% (1,000,000) of the shares vest on the first anniversary of the Effective Date; and, thereafter, 1/48th (83,333) of the shares vest on each succeeding monthly anniversary of the Effective Date.