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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant
to Section14(a) of the
Securities Exchange Act of 1934
Filed by the Registrant
☒
Filed by a party other than the Registrant
☐
Check the appropriate box:
☐
Preliminary Proxy Statement
☐
Confidential, for Use of the Commission Only (as permitted by Rule14a-6(e)(2))
☒
Definitive Proxy Statement
☐
Definitive Additional Materials
☐
Soliciting Material Pursuant to §240.14a-12
Picard Medical, Inc.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if Other Than The Registrant)
Payment of Filing Fee (Check the appropriate box):
☒
No fee required.
☐
Fee paid previously with preliminary materials.
☐
Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules14a-6(i)(1) and 0-11
PROXY STATEMENT FOR SPECIAL MEETING OF STOCKHOLDERS OF PICARD MEDICAL, INC.
Proxy Statement dated September 29, 2025
and first mailed to stockholders on or about September 29, 2025
Dear Stockholders:
You are cordially invited to attend a special
meeting of stockholders (Special Meeting) of Picard Medical, Inc. (the Company) at 8:00 p.m., Eastern Time,
on October 10, 2025. This Special Meeting will be held entirely online to allow for greater participation. Stockholders may participate
in this Special Meeting by visiting the following hosting URL: https://www.cstproxy.com/picardmedical/2025.
Your vote is very important! Whether or not you plan to attend the Special Meeting, we urge you to read the enclosed proxy statement and vote as soon as possible via the Internet, by telephone or, if you receive a paper proxy card or voting instruction form in the mail, by mailing the completed proxy card or voting instruction form.
Thank you for your confidence and continued support.
Sincerely,
/s/ Patrick NJ Schnegelsberg
Patrick NJ Schnegelsberg
Chief Executive Officer and Director
NOTICE OF Special Meeting OF STOCKHOLDERS
Time
8:00 p.m., Eastern Time
Date
October 10, 2025
Place
The Special Meeting will be held entirely online at https://www.cstproxy.com/picardmedical/2025
.
Purpose
To approve an amendment to the Companys
2021 Equity Incentive Plan (the Amended Incentive Plan), to (i) increase the aggregate number of shares of common
stock available under the 2021 Equity Incentive Plan to a total of 18,000,000 shares as more particularly outlined in the Proposal,
(ii) include warrant as a type of awards issuable under the Amended Incentive Plan, and (iii) to ratify the 2021 Equity Incentive Plan;
and
To transact any other business that may properly come before the meeting or any adjournment or postponement thereof.
These items of business are more fully described in the proxy statement accompanying this notice.
Record Date
The Board has fixed the close of
business on September 16, 2025, as the record date for determining stockholders entitled to notice of and to vote at the
meeting.
Meeting Admission
All stockholders as of the record date, or their duly appointed proxies, may attend the meeting. You will not be able to attend the Special Meeting physically. To be admitted to the Special Meeting at https://www.cstproxy.com/picardmedical/2025, you must enter the control number found on your proxy card, voting instruction form or Notice card.
Voting by Proxy
YOUR VOTE IS VERY IMPORTANT. You may vote during the Special Meeting by telephone or over the Internet on our proxy agents website
at https://www.cstproxy.com/picardmedical/2025, by following the instructions included on the enclosed proxy card. If you are not voting by phone or Internet, the Company
requests that you complete, sign, date and return the enclosed proxy card without delay in the enclosed postage-paid return envelope,
even if you now plan to attend the Meeting. You may revoke your proxy at any time prior to its exercise by delivering written notice or
another duly executed proxy bearing a later date to the Chief Executive Officer of the Company, or by attending the Meeting and voting
in person. We will not be able to count a proxy card unless we receive it at our principal executive offices at 1992 E Silverlake, Tucson
AZ, 85713, or at the office of our proxy agent, Continental Stock Transfer at 1 State Street 30th Floor, New York, NY 10004-1571, in the enclosed envelope.
Beginning on or about September 29, 2025, the proxy materials will be mailed to our stockholders of record on September16, 2025.
A list of stockholders entitled to vote at the Special Meeting will be available for inspection by any stockholder at our executive offices for a period of 10 days prior to the Special Meeting until the close of such meeting.
By order of the Board of Directors,
/s/ Patrick NJ Schnegelsberg
Patrick NJ Schnegelsberg
Chief Executive Officer and Director
September 29, 2025
Important
Notice Regarding the Availability of Proxy Materials for the Special Meeting to Be Held on October 10, 2025: The proxy statement and
proxy card are also available at https://www.cstproxy.com/picardmedical/2025.
PROXY STATEMENT
FOR SPECIAL
Meeting
OF STOCKHOLDERS
TO BE HELD ON OCTOBER 10, 2025
AT 8:00 p.m., Eastern Time
GENERAL INFORMATION
As used in this proxy statement, the Company, we, us and our refer to Picard Medical, Inc. The term Special Meeting, as used in this proxy statement, refers to the Special Meeting of Stockholders and includes any adjournment or postponement of such meeting.
When are this proxy statement and the accompanying materials scheduled to be sent to stockholders?
This proxy statement and the proxy card will be mailed to you on or about September 29, 2025, shortly after the filing of the definitive
proxy statement with the Securities and Exchange Commission (the SEC).
How do I attend the Special Meeting?
The meeting will be held entirely online on October 10, 2025 at 8:00 p.m. Eastern Time at https://www.cstproxy.com/picardmedical/2025. Information
on how to vote at the virtual Special Meeting is discussed below.
When is the record date for the Special Meeting?
The Board of Directors of the Company (the
Board) has fixed the record date for the Special Meeting as of the close of business on September16, 2025 (the
Record Date).
Who can vote at the Special Meeting?
Only stockholders of record at the close of business on the Record Date will be entitled to vote at the Special Meeting. As of the Record Date, a total of 73,701,176 shares of our common stock were outstanding and entitled to vote. Each share of common stock is entitled to one vote on each matter.
What is the difference between a stockholder of record and a street name holder?
If your shares are registered directly in your name with Continental Stock Transfer Trust Company, Inc., our transfer agent, you are considered the stockholder of record, or a registered holder, with respect to those shares.
If your shares are held in a brokerage account or by a bank or other nominee (in street name), you are considered the beneficial owner of those shares.
How do I vote by proxy before the Special Meeting?
If your shares are held directly in your own name, and you receive printed copies of the proxy materials, you may vote your shares by mail by completing, signing and dating the proxy card. To vote over the internet or by telephone, you should refer to your proxy card for instructions.
If your shares are held in street name, meaning registered in the name of your broker, bank or other nominee, you should vote your shares by following the instructions from your broker, bank or other nominee.
1
What shares are included on a proxy card or voting instruction form?
Each proxy card or voting instruction form represents the shares registered to you as of the close of business on the Record Date. You may receive more than one proxy card or voting instruction form if you hold your shares in multiple accounts, some of your shares are registered directly in your name with our transfer agent, or some of your shares are held in street name through a broker, bank, or other nominee. Please vote the shares on each proxy card or voting instruction form to ensure that all of your shares are counted at the Special Meeting.
What if I have shares registered in my name and dont vote on a particular matter when returning a proxy card?
Properly signed proxy cards received before the close of voting at the Special Meeting will be voted according to the directions provided. If a signed proxy card is returned without stockholder direction on a matter, the shares will be voted as recommended by the Board.
Will my shares be held in street name be voted if I dont provide instructions?
Current NYSE American LLC (NYSE American) rules allow brokers to vote shares on certain routine matters for which their customers do not provide voting instructions. The approval of an amendment to the Companys 2021 Equity Incentive Plan (the Amended Incentive Plan) is not a routine proposal; therefore, your broker will be unable to vote your shares if you do not instruct your broker how to vote, which is referred to as a broker non-vote. Broker non-votes will have no effect on the outcome of the votes on the approval of the Amended Incentive Plan since they are not entitled to vote on the proposal.
How can I vote at the virtual Special Meeting?
Stockholders of record may vote their shares electronically at the Special Meeting by following the instructions at https://www.cstproxy.com/picardmedical/2025.
If you hold your shares in street name, you may not vote your shares at the online Special Meeting unless you request and obtain a valid proxy card from your broker, bank or other nominee.
I have shares registered in my name and, in addition, have shares in a brokerage account. How do I vote these shares?
Shares that you hold in street name are not included in the total number of shares set forth on your proxy card. Your broker, bank or other nominee will send you instructions on how to vote those shares.
What are the Boards recommendations on how to vote my shares?
The Board recommends a vote:
Proposal:
FOR
the approval of an amendment to the 2021 Equity Incentive Plan (page 4).
Who pays the cost for soliciting proxies?
We will pay the entire cost of soliciting proxies. In addition to these Proxy Materials, our directors and employees may also solicit proxies in person, by telephone or by other means of communication. Directors and employees will not be paid any additional compensation for soliciting proxies. We will also reimburse brokers, banks, custodians, other nominees and fiduciaries for forwarding these materials to their principals to obtain authorization for the execution of proxies
2
Can I change my vote?
Stockholder of Record: Shares Registered in Your Name
If your shares are registered directly in your name, you may change your vote or revoke your proxy by:
●
delivering written notice to the Company at any time before the close of voting at the Special Meeting;
●
submitting a later dated proxy over the internet or by telephone in accordance with the instructions in the Notice or the proxy card; or
●
voting your shares electronically during the Special Meeting.
If your shares are held in street name, you should contact your broker, bank or other nominee to change your vote or revoke your proxy.
How is a quorum reached?
Business may not be conducted at the Special Meeting unless a quorum is present. Under our bylaws (Bylaws), the holders of a majority of the outstanding shares of stock entitled to vote, present in person or represented by proxy, constitute a quorum for the transaction of business at the Special Meeting.
If there are not sufficient shares present or represented by proxy at the Special Meeting to constitute a quorum for approval of any matter to be voted upon, the Special Meeting may be adjourned to permit further solicitation of proxies in order to achieve a quorum. Abstentions and broker non-votes are counted as shares present and entitled to vote for the purpose of determining whether a quorum is present.
What vote is required to approve each item and how are votes counted?
The approval of the Amended Incentive Plan requires the vote of the holders of a majority of the shares of common stock present in person or represented by proxy and entitled to vote. Abstentions have the same effect as a vote against Proposal, and broker non-votes will have no effect on the voting of Proposal. A copy of the Amended Incentive Plan as proposed to be amended is attached to this proxy statement as
Annex A
Could other matters be decided at the Special Meeting?
We do not know of any other matters that may be presented for action at the Special Meeting. Should any other business come before the meeting, the persons named on the proxy will have discretionary authority to vote the shares represented by such proxies in accordance with their best judgment. If you hold shares through a broker, bank or other nominee as described above, they will not be able to vote your shares on any other business that comes before the Special Meeting unless they receive instructions from you with respect to such matter.
What happens if the meeting is postponed or adjourned?
Your proxy may be voted at the postponed or adjourned meeting. You will still be able to change your proxy until it is voted.
How can I find out the results of the voting at the Special Meeting?
Preliminary voting results will be announced at the Special Meeting. Final voting results will be published in a Current Report on Form 8-K (Form 8-K) that we expect to file with the SEC within four business days after the Special Meeting. If final voting results are not available to us in time to file a Form 8-K within four business days after the Special Meeting, we intend to file a Form 8-K to publish preliminary results and, within four business days after the results are known to us, file an additional Form 8-K to publish the final results.
Who should I contact if I have any additional questions?
If you are the stockholder of record for your shares,
please contact Bernard Skaggs or Patrick Schnegelsberg, at
Bskaggs@SynCardia.com
or
Pschnegelsberg@syncardia.com
. If your
shares are held in street name, please contact the telephone number provided on your voting instruction form or contact your bank, broker
or other nominee holder directly.
3
PROPOSAL: APPROVAL OF AN AMENDMENT TO THE 2021 EQUITY INCENTIVE PLAN
Overview
The 2021 Equity Incentive Plan was originally
adopted by the Board on September 26, 2021. The Company is seeking stockholder approval Amended Incentive Plan to allow the Board to (i)
increase the aggregate number of shares of common stock available under the 2021 Equity Incentive Plan to a total of 18,000,000 shares,
and (ii) include warrants as a type of award issuable under the Amended Incentive Plan. The Amended Incentive Plan, if this Proposal is
approved, is attached hereto as
Annex A
.
Our Board, the Compensation Committee of the Board (the Committee) and management believe that the effective use of incentive awards is vital to our ability to help retain and incentivize our employees, officers, directors, consultants and advisors. In addition, our future success depends, in large part, upon our ability to maintain a competitive position in attracting, retaining and motivating key personnel. We believe that the Amended Incentive Plan is essential to permit our management to continue to provide long-term, equity-based incentives to present and future employees, consultants and directors.
The following table sets forth certain
information regarding the equity awards granted under the 2021 Equity Incentive Plan as of September 26, 2025 from the 2021 Equity
Incentive Plans share reserve.
Name and Position
Dollar
Value ($)*
Number of
Shares
Number of
Options
Patrick NJ Schnegelsberg,
Chief Executive Officer and Director
20,689,679
0
2,378,124
Bernard Skaggs,
Chief Financial Officer
4,447,397
0
511,195
Matt Schuster,
Chief Operating Officer
5,044,286
0
579,803
All executive officers as a group (3 individuals)
30,181,362
0
3,469,122
All directors who are not executive officers as a group (4 individuals)
6,455,583
0
742,021
All employees who are not executive officers as a group (45 individuals)
12,788,566
0
1,469,949
*
Dollar value based on the closing market price of $8.70 on September
26, 2025.
As of September 26, 2025, there were
73,701,176 shares of common stock outstanding. Information regarding the shares continuing to be governed by the Amended Incentive Plan
is as follows:
Shares
Full Dilution
Number of shares available for future awards under the current 2021 Equity
Incentive Plan
719,166
0.78
%
Number of shares subject to outstanding awards under the current 2021 Equity Incentive
Plan
7,675,194
8.37
%
Number of new shares proposed to be authorized
9,605,640
10.47
%
Total number of shares available for future awards if this proposal is approved
10,324,806
11.26
%
Material Features of the Amended Incentive Plan
The following description of certain material features of the Amended Incentive Plan is intended to be a summary only. This summary is qualified in its entirety by the full text of the Amended Incentive Plan; therefore, the Company encourages its stockholders to review the Amended Incentive Plan for full details pertaining to its terms and conditions. For convenience, the material features of the Amended Incentive Plan are as follows:
Purpose of the Incentive Plan.
The Company has adopted the Amended Incentive Plan to (a) attract, retain and motivate individual service providers to the Company and its Related Companies by providing them the opportunity to acquire an equity interest in the Company and (b) align their interests and efforts with the long- term interests of the Companys stockholders.
Share Reserve.
The Inducement Plan authorizes the issuance of up to 18,000,000 shares of common stock.
4
Eligibility.
The plan administrator may grant Awards (a) to any employee (including any officer or founder) of the Company or a related company and (b) to any independent contractor (including directors, consultants and advisors) who is a natural person for bona fide services rendered to the Company or any related company, provided that (i) the services are not in connection with the offer and sale of the Companys securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Companys securities and (ii) the grant of an Award does not cause the Company to lose the ability to make grants under this Plan in reliance on Rule701 of the Securities Act.
Types of Awards
.
2021 Plan authorizes the grant of the following types of awards:
●
Restricted
Stock, Restricted Stock Units
. The administrator may grant awards of shares of stock, or awards denominated in units of
stock. These awards may be made subject to repurchase or forfeiture restrictions at the administrators discretion. The
restrictions may be based on continuous employment or service for a prescribed time period or the achievement of specified
performance criteria, as determined by the administrator. RSUs represent an unfunded, unsecured right to receive the value of one
share of common stock for each unit subject to the award in cash, common stock or other securities on the date of vesting or
settlement.
●
Performance
Based Awards
. The administrator may grant awards subject to performance-based conditions. Performance awards may be payable
in stock, cash or other property, or a combination, upon the attainment of performance criteria and other terms and conditions as
established by the administrator.
●
Stock
Options
, Warrants
and Stock Appreciation Rights (SARs)
. The administrator may grant either
incentive stock options, which must comply with Code Section422, or non-qualified stock options. The administrator may grant
warrants to purchase the Companys common stocks. Upon exercise, SARs are the right to receive payment per share in stock or
cash, or in a combination of stock and cash, equal to the excess of the shares fair market value on the date of exercise over
its fair market value on the date the SAR was granted. Stock options, Warrants and SARs are subject to the vesting terms prescribed
by the administrator. The exercise price of stock options, warrants or SARs granted under the Amended and Restated 2021 Plan must be
at least equal to 100% of the fair market value of the underlying stock on the grant date, except in the case of options assumed or
substituted for in acquisition transactions. Unless the administrator determines otherwise, fair market value means, as of a given
date, the closing price of our stock. Stock options, warrants and SARs have a maximum term of 10 years from the grant date, subject
to potential earlier termination following a participants termination of employment or service relationship with us.
●
Other Stock
or Cash-Based Awards
. The administrator may grant other incentives payable in cash or in shares, subject to any other terms
and conditions determined by the administrator and the Amended and Restated 2021 Plan.
Performance Conditions Imposed with Respect to Stock Grants or RSUs.
Any awards granted under the Amended Incentive Plan may be subject to the achievement of performance objectives determined based on a Company-wide, divisional, business unit or individual basis and may include performance objectives measuring achievement in: earnings (including earnings per share or net earnings); earnings before interest, taxes and depreciation; earnings before interest, taxes, depreciation and amortization; TSR; return on equity or average stockholders equity; return on assets, investment, or capital employed; stock price; margin (including gross margin); income (before or after taxes); operating income; operating income after taxes; pre-tax profit; operating cash flow; sales or revenue targets; increases in revenue or product revenue; expenses and cost reduction goals; improvement in or attainment of working capital levels; economic value added (or an equivalent metric); market share; cash flow; cash flow per share; share price performance; debt reduction; customer satisfaction; stockholders equity; capital expenditures; debt levels; operating profit or net operating profit; workforce diversity; growth of net income or operating income; billings; financing; regulatory milestones; stockholder liquidity; corporate governance and compliance; environmental or climate impact; social good impact; intellectual property; personnel matters; progress of internal research; progress of partnered programs; partner satisfaction; budget management; partner or collaborator achievements; internal controls, including those related to the Sarbanes-Oxley Act of 2002; investor relations, analysts and communication; implementation or completion of projects or processes; employee retention; strategic partnerships or transactions (including in-licensing and out-licensing of intellectual property); establishing relationships with respect to the marketing, distribution and sale of the Companys products; supply chain achievements; co-development, co-marketing, profit sharing, joint venture or other similar arrangements; individual performance goals; corporate development and planning goals; and other measures of performance selected by the administrator. Performance goals may be established on an absolute basis or relative to the performance of other companies.
5
Term of Option, Warrants or SAR.
The maximum term of an Option, Warrant or SAR will be 10 years from the grant date, subject to earlier termination in accordance with the terms of the Amended Incentive Plan and the Award Agreement.
Change in Our Capitalization
. The number and kind of shares of common stock covered by any outstanding Awards under the Amended Incentive Plan and the exercise or purchase price (if applicable) will be appropriately adjusted for any increase or decrease in the number and kind of outstanding shares or securities resulting from a reorganization, recapitalization, exchange of shares, stock split, reverse stock split, stock dividend, combination or reclassification of shares, spin-off or other similar change in capitalization event including, without limitation, an extraordinary dividend or distribution but excluding an ordinary cash dividend. Any adjustment made by the Administrator will be conclusive and binding upon all affected persons, including the Company and all Recipients.
Limited Transferability.
Awards generally may not be transferred, except by will or the laws of descent and distribution, unless the instrument evidencing the award permits the participant to designate one or more beneficiaries or the administrator otherwise approves a transfer.
Change of Control.
On a change of control then the plan administrator may provide for any combination of the following:
●
arrange for the surviving or acquiring company (or its parent company) to assume or continue the Award or to substitute a similar stock-based award for the Award (including, but not limited to, an award to acquire the same consideration paid to the stockholders of the Company pursuant to the change of control) that preserves the material terms of the original Award;
●
arrange for the assignment of any reacquisition or repurchase rights held by the Company in respect of common stock issued pursuant to the Award to the surviving or acquiring company (or its parent company);
●
accelerate the vesting, in whole or in part, of the Award held by a participant who has not had a Termination of Service (and, if applicable, the time at which the Award may be exercised or settled) to a date prior to the effective time of such Change of Control as the plan administrator determines (or, if the plan administrator does not determine such a date, to the date that is five days prior to the effective date of the change of control), with such Award terminating immediately prior to the effective time of the change of control;
●
arrange for the lapse, in whole or in part, of any reacquisition or repurchase rights held by the Company with respect to the Award on a date prior to the effective time of such change of control as the plan administrator will determine (or, if the plan administrator will not determine such a date, on the date that is five days prior to the effective date of the change of control);
●
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 of control, in exchange for such cash consideration, if any, as the Plan Administrator, in its sole discretion, may consider appropriate; and
●
make a payment, in such form as may be determined by the plan administrator equal to the excess, if any, of (A) the value of the property the participant would have received on the exercise or settlement of the Award immediately prior to the effective time of the change of control, over (B) any price payable by such holder in connection with such exercise or settlement, in consideration for the termination of such Award at or immediately prior to the closing. For clarity, this payment may be zero if the fair market value of the property is equal to or less than the exercise or purchase price.
The plan administrator need not take the same action with respect to all Awards or portions thereof or with respect to all participants. The plan administrator may take different actions with respect to the vested and unvested portions of an Award. The plan administrator may provide that payments may be subject to the same terms and conditions as the payment of consideration to the holders of the Companys common stock in connection with the Change of Control, including any delay as a result of escrows, earn outs, holdbacks or other contingencies. The plan administrator may also provide that payments made over time will remain subject to substantially the same vesting schedule as the Award, including any performance-based vesting metrics that applied to the Award immediately prior to the closing of the Change of Control.
6
Administration
. The Board has the authority to administer the Amended Incentive Plan.
Adjustments
. If any change to our common stock occurs by reason of a stock dividend, stock split, spin-off, combination or exchange of shares, recapitalization, merger, consolidation, distribution to stockholders other than a normal cash dividend, or other change in the Companys corporate or capital structure that constitutes an equity restructuring transaction under applicable financial accounting rules and that results in the outstanding shares of common stock, or any securities exchanged therefor or received in their place, being exchanged for a different number or kind of securities of the Company or any other company or new, different or additional securities of the Company or any other company being received by the holders of shares of common stock, the administrator will make proportional adjustments as it, in its sole discretion, deems appropriate, to the maximum number and kind of securities (a) available for issuance under the Amended and Restated 2021 Plan, (b) issuable as incentive stock options and (c) subject to any outstanding award, including the per share price of such securities.
Amendment or Termination of the Incentive Plan
. The plan administrator may amend, suspend or terminate the Amended Incentive Plan in whole or in part at any time, subject to stockholder and/or the approval of any affected Recipient, under the rules applicable to ISOs, or otherwise pursuant to the Amended Incentive Plan or under the NYSE American or other applicable securities exchange rules.
Reasons for the 2021 Equity Incentive Plan Amendment
The Company views its use of stock-based awards as an essential part of the Companys compensation program and as an important element in achieving the programs goals of attracting and retaining key employees and directors, providing them with additional incentive to increase the long-term value of the Company, and linking their financial interests with those of the Companys stockholders. The Company also believes that stock-based awards motivate employees and non-employee directors to create stockholder value because the value they realize from these awards is based in large part on the Companys common stock price performance.
The Company also uses stock-based awards to compensate certain consultants and advisors to the business and the Company believes this is an important element in aligning these consultants and service providers to the goals of the Company. It motivates the consultants and service providers to give a maximum effort to share in the returns for their services.
The increase in the number of shares available under the Plan and the inclusion of warrants as an award type are to ensure that we have the continued ability to make appropriate awards under the Plan. We expect that the requested increase in the number of shares would likely be sufficient to provide Plan awards for at least an additional year, at which time the Company would seek stockholder approval for the award of any additional shares under the Plan.
If stockholder approval of the share increase is not obtained, there will be insufficient shares available under the Plan to make annual awards and to provide grants to new hires in future years. In this event, the Company would be required to revise its compensation philosophy and formulate other cash-based programs to attract, retain and compensate key employees and non-employee directors. The Company would also have to use cash for some consultants and service providers to achieve its goals.
Form of Amended Incentive Plan
The proposed form of the Amended Incentive Plan is attached hereto as
Annex A
.
New Plan Benefits
Future awards, if any, that will be made to eligible persons under the Amended Incentive Plan are subject to the discretion of the plan administrator and, therefore, we cannot currently determine the benefits or number of shares subject to awards that may be granted in the future to our officers, employees, directors, consultants and advisors under the Plan.
THE BOARD UNANIMOUSLY RECOMMENDS THAT YOU VOTE FOR THE APPROVAL OF
AN AMENDMENT TO 2021 EQUITY PLAN
7
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth information known
to us regarding the beneficial ownership of our common stock as of September 26, 2025, by (1) any person who is known by us to be the
beneficial owner of more than 5% of the outstanding shares of common stock, (2) our directors, (3) our executive officers, and (4)
all of our directors and executive officers as a group. The address for each beneficial owner is c/o Picard Medical, Inc., 1992 E
Silverlake Rd, Tucson, AZ 85713, unless otherwise provided.
Shares of Common Stock
Beneficially Owned
Name of Beneficial Owner
Number of
Shares
Percentage
(1)
Directors and Executive Officers
Patrick NJ Schnegelsberg
-
0.00
%
Bernard Skaggs
-
0.00
%
Matt Schuster
-
0.00
%
Frank Tinker
-
0.00
%
Richard Fang
-
0.00
%
Chris Hsieh
-
0.00
%
Sam Van
-
0.00
%
George Ye
-
0.00
%
5% Stockholders
Hunniwell
(2)
39,618,919
54.8
%
Sindex SSI Financing, LLC
(3)
7,943,585
11.0
%
All directors and executive officers as a group (8 persons)
-
0.00
%
(1)
Based on 73,701,176 shares as of September 26, 2025.
(2)
Hunniwell Picard I, LLC is a manager-managed venture capital fund managed by Hunniwell Picard GP, LLC where dispositive decisions require
the unanimous vote of both two partners, namely Yuncai (Richard) Fang and Chris Hsieh. Under the so-called rule of
two because voting and dispositive decisions are made by a unanimous vote of both two partners, neither of the two partners is
deemed to be a beneficial owner of shares, even those in which any director holds a pecuniary interest.
(3)
Gregory L. Segal has voting and dispositive control over the shares owned by Sindex SSI Financing, LLC.
8
HOUSEHOLDING OF PROXY MATERIALS
The SEC has adopted rules that permit companies and intermediaries (e.g., brokers) to satisfy the delivery requirements for proxy statements and annual reports with respect to two or more stockholders sharing the same address by delivering a single proxy statement addressed to those stockholders. This process, which is commonly referred to as householding, potentially means extra convenience for stockholders and cost savings for companies.
This year, several brokers with account holders
who are our stockholders will be householding our Proxy Materials. A single set of the proxy materials will be delivered
to multiple stockholders sharing an address unless contrary instructions have been received from the affected stockholders. Once you have
received notice from your broker that they will be householding communications to your address, householding
will continue until you are notified otherwise or until you revoke your consent. If, at any time, you no longer wish to participate in
householding and would prefer to receive a separate set of proxy materials, please notify your broker or the Company. Direct
your written request to: Picard Medical, Inc., 1992 E SILVERLAKE, TUCSON AZ, 85713, Attention: Bernard Skaggs.
Stockholders who currently receive multiple copies of the proxy materials at their addresses and would like to request householding of their communications should contact their brokers.
9
OTHER MATTERS
The Board knows of no business to be brought before the Special Meeting, which is not referred to in the accompanying Notice of Special Meeting. Should any such matters be presented, the persons named in the proxy shall have the authority to take such action regarding such matters as in their judgment seems advisable. If you hold shares through a broker, bank or other nominee as described above, they will not be able to vote your shares on any other business that comes before the Special Meeting unless they receive instructions from you with respect to such matter.
10
Annex A
PICARD
MEDICAL
SYSTEMS
, INC.
AMENDED
AND RESTATED 2021 EQUITY INCENTIVE PLAN
1.
Purpose of the Plan
.
The Company has adopted the Amended and Restated 2021 Equity Incentive Plan to (a) attract, retain
and motivate individual service providers to the Company and its Related Companies by providing them the opportunity to acquire an equity
interest in the Company and (b) align their interests and efforts with the long- term interests of the Companys stockholders.
2.
Definitions
.
Capitalized terms used in the Plan have the meanings set forth in
Appendix A
.
3.
Administration
.
(a)
Plan Administrator
.
(i)
The Plan Administrator is the Board or a Committee duly authorized
by the Board (for so long as such authorization is extended). The Board and any Committee may have concurrent authority to administer
the Plan. All references in the Plan to the
Plan Administrator
will be to the Board or the authorized Committee.
For so long as such a Committee is not duly constituted under the Companys Charter and applicable
listing standards, the Board will act directly as Plan Administrator.
(ii)
By adopting this Plan, the Board has delegated authority to Sin Yew (Daniel) Teo, in his capacity as a member of the Board,
to be a Committee of the Board authorized to act as Plan Administrator solely to do the following: (A) amend outstanding Awards to toll
the expiration of Awards pending any decisions of the Plan Administrator, (B) amend an outstanding Option to permit exercise prior to
vesting subject to a right to repurchase unvested shares on a Termination of Service that lapses on the original vesting schedule, (C)
amend an outstanding Award to permit the Transfer of such Award pursuant to a qualified domestic relations order or to a trust that qualifies
as a family member for purposes of Rule 701 of the Securities Act, and (D) determine the treatment of Awards if a Participant
has a change in service or takes a leave of absence.
(b)
Powers of Plan Administrator
.
The Plan Administrator will have full power and exclusive authority, subject to the terms
of this Plan, restrictions under Applicable Law, and the delegation of authority from the Board, to:
(i)
select which Eligible Persons will be granted Awards;
(ii)
determine the type of Awards, number of shares of Common Stock covered by the Award, the Fair Market Value of the shares, and the terms
and conditions of that Award (including when the Award may vest, be exercised (including prior to vesting), or settled, whether the Award
carries rights to dividends or dividend equivalents, and whether the Award is to be settled in cash, shares of Common Stock, or other
property) and the form of Award Agreement;
(iii)
determine whether, to what extent and under what circumstances Awards may be amended (including to waive restrictions, accelerate vesting
or extend exercise periods), tolled, cancelled or terminated;
(iv)
interpret and administer the Plan, any Award Agreement and any other agreements or documents related to the administration of Awards;
(v)
establish rules, and delegate ministerial duties to the Companys employees consistent with Applicable Law, for the proper administration
of the Plan; and
(vi)
make any other determination and take any other action that the Plan Administrator deems necessary or desirable for administration of
the Plan.
Annex A-
1
The
Plan Administrators decisions will be final, conclusive and binding on all persons, including the Company, any Participant, any
stockholder and any Eligible Person.
4.
Shares Subject to the Plan
.
(a)
Authorized Number of Shares
.
Subject to adjustment from time to time as provided in this Plan, the number of shares of
Common Stock available for issuance under the Plan will be
2,585,560
18,000,000
shares (the
Share Reserve
). Shares issued under the Plan will be drawn from authorized and unissued shares
or treasury shares, which may include shares subsequently reacquired by the Company.
(b)
Share Use
.
(i)
Shares of Common Stock covered by an Award will not reduce the available Share Reserve unless and until they are issued to a Participant
on the Companys stockholder ledger.
(ii)
If (A) any Award lapses, expires, terminates or is canceled prior to the issuance of shares thereunder, (B) shares under an Award are
issued to a Participant and thereafter are forfeited to or otherwise withheld or reacquired by the Company (including to pay the exercise
price or applicable tax withholdings due on an Award, as part of the Companys vested share repurchase right, or as part of a negotiated
repurchase by the Company and the Participant), or (C) an Award is settled in cash, then those shares that are either not issued under
the Award, or that are issued and then forfeited or reacquired under the Award, will remain, or again become, available for issuance
under the Plan.
(iii)
If a Participant receives dividends or dividend equivalents in respect of an Award in the form of shares or reinvests cash dividends
or dividend equivalents paid in respect of Awards into shares of Common Stock, those shares will not reduce the Share Reserve, unless
expressly determined otherwise by the Plan Administrator.
(iv)
The Plan Administrator may grant Substitute Awards under the Plan. If the Board approves a written agreement between the Company and
an Acquired Entity pursuant to which a merger or consolidation is completed and that agreement sets forth the terms and conditions of
the substitution for or assumption of outstanding awards of the Acquired Entity, the grant of those substitute or assumed awards will
be deemed to be the action of the Plan Administrator without any further action by the Plan Administrator, and the persons holding the
newly substituted or assumed Awards will be deemed to be Participants.
5.
Eligibility
.
The Plan Administrator may grant Awards (a) to any employee (including any officer or founder) of the Company
or a Related Company and (b) to any independent contractor (including directors, consultants and advisors) who is a natural person for
bona fide services rendered to the Company or any Related Company, provided (i) the services are not in connection with the offer and
sale of the Companys securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market
for the Companys securities and (ii) the grant of an Award does not cause the Company to lose the ability to make grants under
this Plan in reliance on Rule 701 of the Securities Act.
6.
Provisions Applicable to All Awards
.
(a)
Grant Date
. Corporate action constituting a grant by the Company of an Award to any Participant will be deemed completed
as of the date of such corporate action, unless otherwise determined by the Plan Administrator, regardless of when the instrument, certificate,
or letter evidencing the Award is communicated to, received by, or accepted by, the Participant.
(i)
Clerical Errors
. If the Plan Administrators records (e.g., consents, resolutions or minutes) documenting the corporate
action granting the Award contain terms (e.g., exercise price, vesting schedule or number of shares) that are inconsistent with those
in the Award Agreement as a result of a clerical error in the papering of the Award Agreement, the Plan Administrators records
will control and the Participant will have no legally binding right to the incorrect term in the Award Agreement.
Annex A-
2
(ii)
Grants Prior to Start Date
. If the Plan Administrator attempts to grant an Award effective as of a date in the future,
and if the Award recipient is not in service with the Company or a Related Company as of that future date (either due to failure to commence
service by that future date or a Termination of Service), then as of that future date, the Award will be deemed null, void and of no
force and effect without any further action by the Plan Administrator, and the individual will have no rights, title or interests in
or to the Award or the shares of Common Stock underlying the Award. To the maximum extent permitted in compliance with Applicable Law,
in the case of any attempt to grant an Option or SAR as of a future date, if the Fair Market Value of the Companys Common Stock
has increased between the date of the Plan Administrators action to grant the Award as of a future date and that actual future
date, the Award will be automatically repriced to have an exercise price equal to the higher Fair Market Value on that future date, even
if the Fair Market Value is not determined by the Plan Administrator until a date after that future date.
(iii)
Insufficient Shares
. If, on the Grant Date of an Award, there are not sufficient shares in the Share Reserve to cover the
shares that may become issuable under the Award, that Award will not become exercisable or settled unless and until the necessary corporate
actions have been taken to increase the Share Reserve. If, by the first anniversary of the Grant Date, such corporate actions have not
been taken, and to the extent such corporate actions are necessary for compliance of the Award with Applicable Laws, then the Award will
terminate automatically on that date and the Participant will have no further rights, title or interests in or to the Award or the shares
underlying the Award.
(b)
Evidence of Awards
.
The Plan Administrator will document all Awards by a written instrument (including electronic writings
such as smart contracts and distributed ledger entries) that contain the material terms of the Award, including but not limited to the
consideration to be paid to receive the Award (including the Participants services to the Company or a Related Company), the exercise
or purchase price (if any), the vesting schedule (including any performance vesting triggers), and the Companys rights to repurchase
or reacquire the shares subject to the Award.
(c)
Other Governing Documents
. The Plan Administrator may require a Participant, as a condition to receiving shares under the
Plan, to (i) become a party to a stock purchase agreement, voting proxy, stockholders agreement or any other similar agreement, in the
form designated by the Plan Administrator, pursuant to which the Participant grants to the Company and/or its other stockholders certain
rights, including but not limited to co- sale rights, Transfer restrictions and voting restrictions with respect to the shares acquired
by the Participant under the Plan; and (ii) sign any additional documentation as reasonably required by the Plan Administrator for compliance
with Applicable Laws and the orderly administration of the Plan.
(d)
Payments for Shares and Taxes
.
The Plan Administrator will determine the forms of consideration a Participant may use to
pay the exercise or purchase price for shares issued under Awards and any withholding taxes or other amounts due in connection with Awards.
A Participant must pay all consideration due in connection with the Award (including withholding taxes) before the Company will issue
the shares being acquired. The Plan Administrator may (but is not required to) permit the use of the following forms of consideration:
(i)
cash or cash equivalent, including checks, wire transfers, ACH payments, and convertible virtual currencies;
(ii)
having the Company withhold shares of Common Stock and any other consideration that would otherwise be issued under an Award (other than
in respect of an Incentive Stock Option) that have an aggregate Fair Market Value on that date equal to the consideration owed to the
Company, including in connection with a Change of Control (a
Withhold to Cover
);
(iii)
tendering (either actually or, if and so long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, by
attestation) shares of Common Stock owned by the Participant free and clear of any liens, claims or other encumbrances that have an aggregate
Fair Market Value on that date equal to the consideration owed to the Company, but only if the tender will not result in any adverse
accounting consequences to the Company;
Annex A-
3
(iv)
tendering the cash proceeds resulting from a sale to a third-party investor of some of the shares subject to the Award, but only if the
investor is approved by the Plan Administrator at that time under a private liquidity assistance program approved by the Plan Administrator
(a
Private Sell to Cover
);
(v)
if and so long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, and to the extent permitted by Applicable
Laws, delivery of a properly executed agreement, together with irrevocable instructions to a brokerage firm designated or approved by
the Company to deliver promptly to the Company the aggregate amount of proceeds to pay the consideration due to the Company, all in accordance
with the regulations of the Federal Reserve Board (a
Public Sell to Cover
);
(vi)
solely to the extent permitted by Applicable Law, delivery of a full recourse promissory note that bears interest at a rate specified
by the Plan Administrator that is not less than the rate required to avoid imputation of interest (taking into account any exceptions
to the imputed interest rules) for federal income tax purposes and such other terms as are necessary to avoid adverse financial accounting
charges; and/or
(vii)
such other consideration as the Plan Administrator may permit.
A
Participant may request or authorize the Plan Administrator to withhold amounts owed under this Plan from cash payments otherwise owed
to the Participant by the Company or a Related Company. If a Participant engages in a Withhold to Cover transaction to pay for applicable
tax withholdings, the value of the shares so withheld may not exceed the employers applicable maximum required tax withholding
rate or such other applicable rate as is necessary to avoid adverse treatment for financial accounting purposes, as determined by the
Plan Administrator.
(e)
Vesting
. Unless otherwise provided by the Plan Administrator, a Participant will cease vesting in an Award at the time
of the Participants Termination of Service and the Participant will have no further rights, title or interest in or to the unvested
portion of the Award following the Termination of Service.
(f)
Performance-Based Awards
. The Plan Administrator may grant Awards subject to performance- based conditions. The Plan Administrator
may choose the performance-based conditions in its sole discretion, which may be determined on a Company-wide, divisional, business unit
or individual basis and may include the Performance Metrics. The time period during which the performance-based conditions must be met
will be called the Performance Period.
(g)
Change in Service; Leaves of Absence
. The Plan Administrator will determine the effect on Awards of a Participants
leave of absence or change in hours of employment or service. In general, if, after the Grant Date of any Award to a Participant, the
Participants regular level of time commitment in the performance of the Participants services for the Company and any Related
Companies is reduced (for example, and without limitation, if the Participant has a change in status from a full-time employee to a part-time
employee, or if the Participant goes on a leave of absence without using paid vacation or sick days), the Plan Administrator has the
right in its sole discretion (and without the need to seek or obtain the consent of the affected Participant) to (i) make a corresponding
reduction in the number of shares, other property or cash 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 (but only if the modification would not cause the Participant to incur penalties or additional
taxation under Section 409A). If an Award is reduced, the Participant will have no right with respect to the portion of the Award that
is so reduced.
(h)
Applicability of Award Terms to New Property
. If a Participant receives new or additional shares of Common Stock, other
securities, other property, or cash in respect of an Award, those shares, securities, property and cash will be subject to all the same
terms of the Plan and the Award Agreement as applied to the underlying shares of Common Stock subject to that Award.
Annex A-
4
(i)
Recoupment
. All Awards are subject to recoupment in accordance with any clawback policy that the Company is required to
adopt pursuant to the listing standards of any national securities exchange or association on which the Companys securities are
listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other Applicable Law. The implementation
of any clawback policy will not be deemed a triggering event for purposes of any definition of good reason for resignation
or constructive termination.
(j)
Investigations
. If a Participants employment or service relationship with the Company is suspended pending an investigation
of whether the Participant will be terminated for Cause, all the Participants rights under any Award will likewise be suspended
during the period of investigation.
(k)
No Obligation to Notify or Minimize Taxes
.
The Company and the Plan Administrator will have no duty or obligation to any
Participant to advise such holder as to the time or manner of exercising Participants rights under an Award. Furthermore, the
Company will have no duty or obligation to warn or otherwise advise such holder of a pending termination or expiration of an Award or
a possible period in which the Award may not be exercised. The Company has no duty or obligation to minimize the tax consequences of
an Award to the holder of such Award.
7
.
Options
, Warrants
SARs
.
(a)
Exercise Price
.
(i)
Generally, the Plan Administrator may not grant Options
, Warrants
or SARs with an exercise
price per share less than 100% of the Fair Market Value of the Common Stock on the Grant Date.
(ii)
The Plan Administrator may grant Options
, Warrants
or SARs with a price less than 100% of
the Fair Market Value in the case of (A) Substitute Awards, (B) Awards that are granted in a manner exempt from or compliant with Section
409A, or (C) Awards granted to Participants who are not, on the Grant Date, subject to Section 409A.
(iii)
The Plan Administrator may, with the consent of any adversely affected Participant, (A) reduce the exercise or strike price of an outstanding
Option
, Warrants
or SAR, (B) cancel any outstanding Option
,
Warrants
or SAR and the grant in substitution therefor of a new (1) Option
, Warrants
or SAR, (2) Restricted Stock, (3) Restricted Stock Units, (4) cash and/or (5) other valuable consideration determined by the Plan Administrator,
in its sole discretion, with any such substituted award (x) covering the same or a different number of shares of Common Stock as the
cancelled Award and (y) granted under the Plan or another equity or compensatory plan of the Company or (C) take any other action that
is treated as a repricing under generally accepted accounting principles.
(b)
Term
.
The maximum term of an Option
, Warrants
or SAR will be 10 years from the
Grant Date, subject to earlier termination in accordance with the terms of the Plan and the Award Agreement.
(c)
Conditions to Exercise
.
(i)
To exercise an Option
, Warrants
or SAR, the Participant must deliver (A) the exercise agreement
stating the number of shares being purchased and, if applicable, the account number or digital wallet address into which the shares should
be deposited, (B) payment in full of the exercise price and any tax withholding obligations, and (C) any additional documents, including
a joinder to a voting agreement or stockholders agreement, requested or required by the Company as a condition to exercise. The
Company will not initiate the settlement on the exercise of an Option
, Warrants
or SAR until
the Company has verified that all conditions necessary for the exercise of the Award have been satisfied (including compliance with Applicable
Laws), all the foregoing steps have been completed and the Company initiates the issuance of the shares in the Participants name.
The Company will issue exercised shares promptly after the exercise.
Annex A-
5
(ii)
If a Participant is exercising an Option prior to vesting and wishes to make an election under Section 83(b), such Participant must deliver
a completed copy of Participants Section 83(b) election to the Internal Revenue Service within 30 days after exercise and pay
all taxes due in connection with that election. In addition, the Participant must deliver to the Company, within 60 days after exercise,
evidence of timely receipt of the Section 83(b) election by the Internal Revenue Service. If a Participant fails to satisfy these requirements
or fails to make a Section 83(b) election at all, the Plan Administrator will instruct the Company to withhold/remit (if applicable)
taxes on, and report to the applicable taxing authorities, the income recognized on each subsequent vesting date of the Award in accordance
with Applicable Law.
(iii)
The Plan Administrator may modify the exercise agreement form, and the procedure for exercise, from time to time, including after the
Grant Date of an Award, without the Participants consent. The Plan Administrator may restrict exercise to those times when the
exercise will not violate Applicable Laws and the Plan Administrator has a reasonable basis to determine Fair Market Value. In addition,
the Plan Administrator may prohibit exercise in anticipation of a material corporate event (including a financing or Change of Control)
or during any blackout or closed trading windows under the Companys insider trading policies (as amended
from time to time).
(iv)
The Plan Administrator may require that an Option may be exercised only for whole shares and for not less than a reasonable number of
shares at any one time.
(d)
Non-Exempt Employees
.
If an Option
, Warrant
or SAR is granted to an employee
who is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, the Option or SAR will not be first exercisable
for any shares of Common Stock until at least 6 months following the Grant Date of the Option
, Warrant
or SAR (although the Award may vest prior to such date). Consistent with the provisions of the Worker Economic Opportunity Act, (i) if
such non-exempt employee dies or suffers a disability, (ii) on a Change of Control in which such Option
,
Warrant
or SAR is not assumed, continued, or substituted, or (iii) on the Participants retirement (as such term may
be defined in the Participants Award Agreement or in another agreement between the Participant and the Company, or, if no such
definition, in accordance with the Companys then current employment policies and guidelines), the vested portion of any Options
,
Warrants
and SARs may be exercised earlier than 6 months following the Grant Date. The foregoing provision is intended to
operate so that any income derived by a non-exempt employee from the exercise or vesting of an Option
,
Warrant
or SAR will be exempt from such employees regular rate of pay. If required for compliance with the Worker Economic
Opportunity Act to ensure that any income derived by a non- exempt employee from the exercise, vesting or issuance of any shares under
any other Award will be exempt from the employees regular rate of pay, the provisions of this paragraph will apply to all Awards
and are hereby incorporated by reference into such Award Agreements.
(e)
Effect of Termination of Service
.
The Plan Administrator will establish and define in the Award Agreement how an Option
or SAR will be treated on a Termination of Service. Unless otherwise set forth in the Award Agreement or otherwise determined by the
Plan Administrator, the following treatment will apply:
(i)
Any portion of an Award that is not vested and exercisable on the date of a Participants Termination of Service will expire on
the date that is 3 months after the Termination of Service. Any Award that remains outstanding and unvested during this 3-month period
is ineligible for accelerated vesting in connection with a Change of Control during that 3-month period (absent express and specific
approval by the Board) and will expire on the day prior to the closing of the Change of Control.
(ii)
Any portion of an Award that is vested and exercisable on the date of a Participants Termination of Service will expire on the
earliest to occur of the following, if not exercised by that date:
(A)
if the Participants Termination of Service occurs for reasons other than Cause, Disability or death, the date that is 3 months
after such Termination of Service;
(B)
if the Participants Termination of Service occurs by reason of Cause, the date of the Termination of Service;
(C)
if the Participants Termination of Service occurs by reason of death or Disability, the date that is 12 months after such Termination
of Service;
Annex A-
6
(D)
if the Plan Administrator determines during any of the foregoing post-termination exercise periods that Cause for termination existed
at the time of the Participants Termination of Service, immediately on such determination;
(E)
if, during any of the foregoing periods, the Company undergoes a Change of Control and the successor or acquiring entity refuses to assume,
continue, replace or substitute an equivalent Award, then on the closing of the Change of Control; and
(F)
the Award Expiration Date.
(f)
Extension Under Limited Circumstances
. The Plan Administrator may provide that:
(i)
if the exercise of an Option or SAR following a Participants Termination of Service (other than upon the Participants death
or Disability) would result in liability under Section 16(b) of the Exchange Act, then the Award will terminate on the earlier of (A)
the Award Expiration Date, or (B) the 10th day after the last date on which such exercise would result in liability under Section 16(b)
of the Exchange Act; or
(ii)
if the exercise of an Award following a Participants Termination of Service (other than upon the Participants death or
Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements
under the Securities Act, then the Award will terminate on the earlier of (A) the Award Expiration Date or (B) 30 days after the date
on which the exercise of the Award would not be in violation of such requirements.
8.
Incentive Stock Option Limitations
.
The terms of an Incentive Stock Option must comply in all respects with Section 422
of the Code, or any successor provision, and any applicable regulations thereunder, each of which is incorporated by reference into this
Plan. The Plan Administrator will construe the terms of any Option granted as an Incentive Stock Option within the meaning of Section
422 of the Code, and if the Option (or a portion thereof) does not meet the requirements of Section 422 of the Code, that Option (or
that portion) will be treated as a Nonqualified Stock Option The requirements of Section 422 include the following:
(a)
ISO Limit
. The maximum number of shares that may be issued on the exercise of Incentive Stock Options will equal
twice
the Share Reserve (the
ISO Limit
). Each increase to the Share Reserve authorized by the Board and stockholders
after the Effective Date will also result in a corresponding
2x
increase in this ISO Limit, unless otherwise expressly
provided in the Board or stockholder resolutions approving such increase.
(b)
ISO Granting Period
. No Incentive Stock Options may be granted more than 10 years after the later of (i) the adoption of
the Plan by the Board and (ii) the adoption by the Board of any amendment to the Plan that constitutes the adoption of a new plan for
purposes of Section 422 of the Code. For clarity, any stockholder approved amendment of the Share Reserve that also amends the ISO Limit
will be deemed the adoption of a new plan for purposes of Code Section 422 and therefore an extension of the period in which Incentive
Stock Options may be granted, unless otherwise expressly provided for in the stockholder resolutions approving such increase.
(c)
ISO Qualification
.
If the aggregate Fair Market Value (determined as of the Grant Date) of Common Stock with respect to
which a Participants Incentive Stock Options become exercisable for the first time during any calendar year (under the Plan and
all other stock option plans of the Company and its parent and subsidiary corporations) exceeds $100,000 (or such other limit established
by the Code), or if the Option otherwise does not comply with the requirements under Section 422 of the Code, the Option (or the portion
that does not meet the requirements of Section 422) will be treated as a Nonqualified Stock Option. Options will be taken into account
in the order in which they were granted. If the Participant holds 2 or more such Options that become exercisable for the first time in
the same calendar year, such limitation will be applied on the basis of the order in which such Options are granted.
Annex A-
7
(d)
Eligible Employees
.
Individuals who are not employees of the Company or one of its parent or subsidiary corporations may
not be granted Incentive Stock Options. This Plan does not prohibit the grant of Incentive Stock Options to employees who reside or work
outside of the United States.
(e)
Exercise Price
.
Incentive Stock Options will be granted with an exercise price per share not less than 100% of the Fair
Market Value of the Common Stock on the Grant Date, and in the case of an Incentive Stock Option granted to a Participant who owns more
than 10% of the total combined voting power of all classes of the stock of the Company or of its parent or subsidiary corporations (as
determined under the Code, a
Ten Percent Stockholder
), will be granted with an exercise price per share not
less than 110% of the Fair Market Value of the Common Stock on the Grant Date. The Plan Administrator will determine status as a Ten
Percent Stockholder in accordance with Section 422 of the Code.
(f)
Option Term
.
The maximum term of an Incentive Stock Option will not exceed 10 years, and in the case of an Incentive Stock
Option granted to a Ten Percent Stockholder, will not exceed 5 years, in each case, subject to earlier termination in accordance with
the terms of the Plan and the Award Agreement.
(g)
Exercisability
.
An Option designated as an Incentive Stock Option will cease to qualify for favorable tax treatment as
an Incentive Stock Option to the extent it is exercised (if permitted by the terms of the Option) (i) more than 3 months after the date
of a Participants termination of employment if termination was for reasons other than death or disability, (ii) more than 1 year
after the date of a Participants termination of employment if termination was by reason of disability (as defined for purposes
of Section 422 of the Code), or (iii) more than 6 months following the first day of a Participants leave of absence that exceeds
3 months, unless the Participants reemployment rights are guaranteed by statute or contract (as such rule is explained in Section
422 of the Code).
(h)
Taxation of Incentive Stock Options
.
To obtain the tax benefits afforded to Incentive Stock Options under Section 422 of
the Code, the Participant must hold the shares acquired on the exercise of an Incentive Stock Option for 2 years after the Grant Date
and 1 year after the date of exercise (that is, the Participant must not Transfer the shares until at least the day after the expiration
of these periods). A Participant may be subject to the alternative minimum tax at the time of exercise of an Incentive Stock Option.
The Participant must give the Company prompt notice of any disposition of shares acquired on the exercise of an Incentive Stock Option
prior to the expiration of these holding periods.
(i)
Code Definitions
.
For the purposes of this Section 8,
disability
,
parent corporation
and
subsidiary corporation
will have the meanings attributed to those terms for purposes of Section 422 of
the Code.
(j)
Stockholder Approval
.
If the stockholders of the Company do not approve the Plan within 12 months after the Boards
adoption of the Plan (or the Boards adoption of any amendment to the Plan that constitutes the adoption of a new plan for purposes
of Section 422 of the Code), Incentive Stock Options granted under the Plan after the date of the Boards adoption (or approval)
will be treated as Nonqualified Stock Options. No Incentive Stock Options may be granted more than ten years after the earlier of the
approval by the Board or the stockholders of the Plan (or any amendment to the Plan that constitutes the adoption of a new plan for purposes
of Section 422 of the Code).
9.
Restricted Stock, Restricted Stock Units and Other Stock-Based Awards
.
(a)
Restricted Stock
.
The Plan Administrator will specify whether the Award is a Restricted Stock Purchase Award or a Restricted
Stock Bonus Award.
(i)
Acceptance
. If the Participant fails to deliver a signed Award Agreement to the Plan Administrator within 30 days after
receipt, the Award will immediately expire on the 30th day after delivery of the Award Agreement to the Participant.
Annex A-
8
(ii)
Section 83(b) Election
. The Plan Administrator may require that the Participant deliver a completed copy of Participants
Section 83(b) election, the taxes due in connection with that election and evidence of timely receipt of the Section 83(b) election by
the Internal Revenue Service. If a Participant fails to satisfy these requirements, the Plan Administrator will instruct the Company
to withhold/remit (if applicable) taxes on, and report to the applicable taxing authorities, the income recognized on each subsequent
vesting date of the Award in accordance with Applicable Law. In the alternative, the Plan Administrator may grant the Award of Restricted
Stock subject to a forfeiture condition whereby failure to satisfy these requirements results in the forfeiture of all unvested shares
of Common Stock subject to the Award at the Participants original purchase price (or for no consideration, in the case of a Restricted
Stock Bonus Award).
(b)
Restricted Stock Units
.
(i)
If the Plan Administrator grants Restricted Stock Units intended to be exempt from Section 409A under Treasury Regulation Section 1.409A-1(b)(4),
then (A) the Company will treat each installment of Restricted Stock Units that vests as a separate installment for purposes of Section
409A, and (B) the Company will deliver the vested shares of Common Stock (or other property or cash due on vesting) not later than the
last day of the period determined under Treasury Regulation Section 1.409A-1(b)(4), which is incorporated by reference into this Plan.
(ii)
If the Plan Administrator grants Restricted Stock Units intended to be compliant deferred compensation under Treasury Regulation Section
1.409A-3, then (A) the Company will treat each installment of Restricted Stock Units that vests as a separate installment for purposes
of Section 409A, and (B) if the Award Agreement fails to state at least one permitted distribution event or form of payment, the Award
Agreement will be deemed to provide that the earlier to occur of a Change of Control and the date that is the first day of the 6th calendar
year after the Grant Date as the permitted distribution dates and a lump sum payment as the form of payment.
(c)
Other Stock-Based Awards
. The Plan Administrator may grant or sell Awards that are valued in whole or in part by reference
to or are otherwise based on the Fair Market Value of, shares of the Companys Common Stock. The Plan Administrator will determine
the form of such Award and the terms and conditions to earning the Award in its sole discretion, including the number of shares referenced
by the Award, the vesting schedule, whether it will be settled in Common Stock, cash or other property, and when it will be settled.
10.
Tax Matters
.
(a)
Withholding
. The Company will require the Participant to pay to the Company or a Related Company, as applicable, the amount
of (i) any taxes that the Company or a Related Company is required by applicable federal, state, local or foreign law to withhold with
respect to an Award and (ii) any other amounts due from the Participant to the Company, any Related Company or any governmental authority.
The Company will not be required to issue any shares of Common Stock or otherwise settle an Award under the Plan until such tax withholding
obligations and other obligations are satisfied.
Annex A-
9
(b)
Section 280G
. By accepting any Award under this Plan, each Participant is agreeing that if the benefits provided for under
the Award, together with any amounts otherwise payable to such Participant in relation to such Participants service with the Company,
any Related Company or any successor thereto (i) constitute parachute payments within the meaning of Section 280G of the
Code, and (ii) would be subject to the excise tax imposed by Section 4999 of the Code (the
Excise Tax
), then
such Participants benefits will be either (1) delivered in full or (2) delivered to such lesser extent which would result in no
portion of such benefits being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal,
state and local income taxes and the Excise Tax, results in the receipt by such Participant on an after-tax basis, of the greatest amount
of benefits, even if the benefits may still be taxable under Section 4999 of the Code. If clause (2) applies, the payments and benefits
will be reduced by the Company in its reasonable discretion in the following order: (A) reduction of cash payments, which will occur
in reverse chronological order with the cash payment owed on the latest date following the event triggering the Excise Tax being the
first cash payment to be reduced; (B) cancellation of accelerated vesting of equity awards, which will occur in the reverse order of
the date of grant for the stock awards (i.e., the vesting of the most recently granted stock awards will be reduced first); and (C) reduction
of other employee benefits, which will occur in reverse chronological order with the benefit owed on the latest date following the event
triggering the excise tax being the first benefit to be reduced. With respect to each of (A)-(C), if any payments or benefits constitute
deferred compensation subject to Section 409A, the reduction will occur first as to amounts that are not deferred. If two or more of
the same type of awards are granted on the same date, the parachute payments associated with each award will be reduced on a pro-rata
basis. In no event will any Participant have any discretion with respect to the ordering of payment reductions. Any determination required
under this section will be made in writing by the Companys outside legal counsel or a nationally recognized tax or accounting
firm like BDO, Deloitte or EY, whose determination will be conclusive and binding on each Participant and the Company for all purposes.
The firm selected may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith
interpretations concerning the application of Section 280G and Section 4999. The Company and each Participant will furnish to such accounting
firm information as they may reasonably request to make a determination under this section.
(c)
Section 409A
. The Company intends that the Plan and Awards granted under the Plan (unless otherwise expressly provided
for in the Award Agreement and Plan Administrator resolutions approving the Award) are exempt from the requirements of Section 409A to
the maximum extent possible, whether pursuant to the short-term deferral exception described in Treasury Regulation Section 1.409A-1(b)(4),
the exclusion applicable to stock options, stock appreciation rights and certain other equity-based compensation under Treasury Regulation
Section 1.409A-1(b)(5) or 1.409A-1(b)(6), or otherwise. The Plan Administrator will use reasonable best efforts to interpret, operate
and administer the Plan and any Award granted under the Plan in a manner consistent with this intention. However, the Plan Administrator
makes no representations that Awards granted under the Plan will be exempt from or comply with Section 409A and makes no undertaking
to preclude Section 409A from applying to Awards granted under the Plan.
(i)
If Section 409A is applicable to any Award granted under the Plan (that is, to the extent not so exempt), the Plan Administrator intends
that the non-exempt Award will comply with the deferral, payout, plan termination and other limitations and restrictions imposed under
Section 409A.
(ii)
If necessary for exemption from, or compliance with, Section 409A:
(A)
All references in the Plan or any Award granted under the Plan to the termination of the Participants employment or service are
intended to mean the Participants separation from service, within the meaning of Section 409A(a)(2)(A)(i).
(B)
The Plan Administrator will treat each installment that vests or is delivered under an Award in a series of payments or installments
as a separate payment for purposes of Section 409A, unless expressly set forth in the Award Agreement that each installment is not a
separate payment.
Annex A-
10
(C)
If the Participant is a specified employee, within the meaning of Section 409A, then if necessary to avoid subjecting the
Participant to the imposition of any additional tax under Section 409A, amounts that would otherwise be payable under the Plan or any
Award granted under the Plan during the 6-month period immediately following the Participants separation from service
will not be paid to the Participant during such period, but will instead be accumulated and paid to the Participant (or, in the event
of the Participants death, the Participants estate) in a lump sum on the first business day after the earlier of the date
that is 6 months following the Participants separation from service or the Participants death, unless the amounts can be
paid in another manner that complies with Section 409A.
(D)
If, after the Grant Date of an Award, the Plan Administrator determines that an Award is reasonably likely to fail to be either exempt
from or compliant with Section 409A, the Plan Administrator reserves the right, but will not be required, to unilaterally (and without
the affected Participants consent) amend or modify the Plan and any Award granted under the Plan so that the Award qualifies for
exemption from or complies with Section 409A. Any such amendment or modification made to avoid the imposition of adverse taxation under
Section 409A will be deemed not to materially adversely impact the Participant.
(E)
The right to any dividends or dividend equivalents declared and paid on the number of shares underlying an Option or a Stock Appreciation
Right may not be contingent, directly or indirectly, on the exercise of the Option or Stock Appreciation Right and must otherwise comply
with or qualify for an exemption under Section 409A. In addition, the right to any dividends or dividend equivalents declared and paid
on Restricted Stock must (i) be paid at the same time such dividends or dividend equivalents are paid to other stockholders (although
it may be subject to the same restrictions as the underlying Restricted Stock) and (ii) comply with or qualify for an exemption under
Section 409A.
11.
Restrictions on Transfer of Awards and Common Stock
.
In general, any Transfer or purported Transfer of an Award or of shares
of Common Stock issued under the Plan in violation of the Plan will be null and void, will have no force or effect, and the Company will
not register in its records any such purported Transfer.
(a)
No Transfer of Awards
. A Participant may not Transfer an Award or interest in an Award other than (i) Transfers on Participants
death by will or by the Applicable Laws of descent and distribution and (ii) Transfers of vested shares of Common Stock after the period
of restrictions have lapsed or been removed and the shares have been issued to the Participant, and subject to compliance with the Companys
policies on trading in Company securities and Applicable Laws. In general, during a Participants lifetime, only the Participant
granted the Award may exercise the Award or purchase the shares under the Award. The Plan Administrator may permit the Transfer of an
Award or an interest in an Award if that Transfer complies with all Applicable Laws, such as a transfer to a trust if the Participant
is considered the sole beneficial owner of the trust (as determined under Applicable Laws) or pursuant to a court-endorsed domestic relations
order in a format acceptable to the Plan Administrator.
(b)
No Transfer of Shares; Right of First Refusal
.
(i)
No Transfer of Shares
. Prior to the Exit Event, a Participant may not Transfer any shares of Common Stock acquired under
the Plan without the written permission of the Plan Administrator, and then only in compliance with Applicable Laws and any Transfer
restrictions set forth in the Plan, the Award Agreement, the Companys Bylaws and any agreements entered into by the Company with
its stockholders.
(ii)
Right of First Refusal
. Before any Participant or any transferee (either being sometimes referred to herein as the
Holder
)
may Transfer any shares of Common Stock acquired under the Plan or any Award Agreement (the
Shares
), the
Company will have a right of first refusal (the
Right of First Refusal
) to purchase such Shares on the following
terms and conditions:
(A)
Notice of Proposed Transfer
.
The Holder will deliver to the Company a written notice (the
Notice
)
stating: (1) the Holders bona fide intention to Transfer the Shares; (2) the name of each proposed purchaser or other transferee
(
Proposed Transferee
); (3) the number of Shares to be Transferred to each Proposed Transferee; and (4) the
terms and conditions of each proposed Transfer, including (without limitation) the purchase price for such Shares (the
Transfer
Purchase Price
). The Holder will offer the Shares at the Transfer Purchase Price and on the same terms (or terms as similar
as reasonably possible) to the Company or its assignees.
Annex A-
11
(B)
Exercise of Right of First Refusal
.
At any time within 30 days after receipt of the Notice, the Company and/or its assignees
may, by giving written notice to the Holder, elect to purchase any or all of the Shares proposed to be Transferred to any one or more
of the Proposed Transferees, at the Transfer Purchase Price. If the Transfer Purchase Price consists of no legal consideration (as, for
example, in the case of a Transfer by gift), the purchase price will be the fair market value of the Shares as determined in good faith
by the Board. If the Transfer Purchase Price includes consideration other than cash, the cash equivalent value of the non-cash consideration
will be determined by the Board in good faith.
(C)
Payment
.
The Company or its assignees will pay the Transfer Purchase Price in cash, by cancellation of all or a portion
of any outstanding indebtedness owed by the Holder, or by any combination thereof (as determined by the Company or its assignees) within
60 days after receipt of the Notice or in the manner and at the times set forth in the Notice.
(D)
Holders Right to Transfer
.
If any of the Shares proposed in the Notice to be Transferred to a given Proposed Transferee
are not purchased under the Right of First Refusal, then the Holder may Transfer any unpurchased Shares to that Proposed Transferee at
the Transfer Purchase Price or at a higher price within 120 days after the date of the Notice. The Transfer must comply with this Plan,
Applicable Laws and any Transfer restrictions set forth in the Companys Bylaws and any stockholders agreements. As a condition
to the Transfer, the Proposed Transferee must agree in writing that the provisions of this Plan will continue to apply to the Shares
in the hands of such Proposed Transferee. The Company, in consultation with its legal counsel, may require the Holder to provide an opinion
of counsel evidencing compliance with Applicable Laws. If the Shares described in the Notice are not Transferred to the Proposed Transferee
within 120 days, or if the Holder proposes to change the price or other terms to make them more favorable to the Proposed Transferee,
the Holder must provide a new Notice to the Company, and the Company and/or its assignees will again be offered the Right of First Refusal
before any Shares held by the Holder may be sold or otherwise Transferred.
(E)
Expiration
. The Right of First Refusal will terminate on the Exit Event.
(F)
Exception for Certain Family Transfers
.
A Participant may make arrangements for the Transfer of any or all of the Shares
during Participants lifetime or on Participants death by will or intestacy to Participants Immediate Family or to
a trust for the benefit of Participant or Participants Immediate Family without application of the Right of First Refusal,
provided
that
the recipient agrees in writing to be bound by the same terms and conditions as Participant as set forth in this Plan and applicable
Award Agreement.
(G)
Restrictions Binding on Transferees
.
All transferees of Shares or any interest in the Shares will receive and hold the
Shares or interest in the Shares subject to the provisions of this Plan and the applicable Award Agreement, including, without limitation,
all Transfer restrictions, the Right of First Refusal and the Market Standoff, and must agree in writing to be bound by such provisions
as a condition to such Transfer. Any Transfer of the Shares will be void unless the provisions of this Plan are satisfied.
(H)
Status of Shares
. On the exercise by the Company or its assignees of the Right of First Refusal, the Company or its assignees
will become the legal and beneficial owner of the Shares being purchased and will have all rights and interest therein or related thereto,
and Participant or the person from whom such Shares are being purchased will no longer have any rights as a Holder of such Shares (other
than the right to receive the Transfer Purchase Price) whether or not any certificates therefor have been delivered to the Company. The
Company or its assignees have the right to Transfer to its own name the Shares being purchased by the Company or its assignees, without
further action by Participant. If the Company is the purchaser of the Shares, the Shares will return to the Share Reserve and become
available for grant again (unless the Board determines otherwise in connection with the Companys exercise of the Right of First
Refusal).
Annex A-
12
(iii)
Legends
.
Any stock certificate, or in the case of uncertificated securities, notices of issuance with respect to, shares
of stock of the Company will bear legends in substantially the following forms (as well as any legends required by Applicable Laws):
(A)
THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES
LAW AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT EFFECTIVE REGISTRATIONS THEREUNDER OR AN OPINION OF COUNSEL, SATISFACTORY
TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATIONS ARE NOT REQUIRED.
(B)
THE SHARES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN EQUITY INCENTIVE PLAN AND/OR AN AGREEMENT
BETWEEN THE COMPANY AND THE STOCKHOLDER, COPIES OF WHICH ARE ON FILE WITH AND MAY BE OBTAINED FROM THE SECRETARY OF THE COMPANY AT NO
CHARGE.
(iv)
Stop-Transfer Notices
.
Each Participant agrees that, to ensure compliance with the limitations on Transfer referred to
in this Plan (including, without limitation, the Right of First Refusal and the Market Standoff), the Company may issue appropriate stop
transfer instructions to its transfer agent, if any, and that, if the Company Transfers its own securities, it may make appropriate
notations to the same effect in its own records.
(v)
Refusal to Transfer
.
The Company will not be required (i) to Transfer on its books any shares of Common Stock that have
been purportedly Transferred in violation of any of the provisions of this Plan or (ii) to treat as owner of the shares or to accord
the right to vote or pay dividends to any purchaser or other transferee to whom the shares have purportedly been so Transferred. In general,
any Transfer or purported Transfer of an Award or of shares of Common Stock issued under the Plan in violation of the Plan will be null
and void and will have no force or effect.
(c)
Market Standoff
.
Each Participant will not, without the prior written consent of the managing underwriter (if applicable)
and the Company, during the period commencing on the date of (i) the final prospectus relating to the IPO or (ii) the consummation of
a SPAC Transaction, as applicable, and ending on the date specified by the Company and the Company and/or the managing underwriter, as
applicable (such period not to exceed 180 days, which period may be extended upon the request of the Company and/or the managing underwriter,
to the extent required by any NASD, NYSE or FINRA rules, for an additional period of up to 15 days if the Company issues or proposes
to issue an earnings or other public release within 15 days after the expiration of the 180-day period), (A) lend; offer; pledge; sell;
contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right or warrant
to purchase; or otherwise Transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into
or exercisable or exchangeable (directly or indirectly) for Common Stock held immediately before the effective date of the registration
statement for the IPO or consummation of the SPAC Transaction, as applicable, or (A) enter into any swap or other arrangement that Transfers
to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described
in clause (A) or (B) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise (these limitations,
the
Market Standoff
). The foregoing provisions of this Section 11(c) will apply only to the IPO or a SPAC
Transaction, will not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, or the Transfer of any
shares to any trust for the direct or indirect benefit of the Participant or the Immediate Family of the Participant,
provided that
the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided further that any such Transfer
does not involve a disposition for value. The underwriters of the IPO are intended third party beneficiaries of this Section 11(c) and
will have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Participant further
agrees to execute such agreements as may be requested by the underwriters (if applicable) and by the Company that are consistent with
this Section 11(c) or that are necessary to give further effect thereto.
(d)
Vested Share Repurchase Right
. The Plan Administrator may grant an Award that includes a provision whereby the Plan Administrator
has the right, but not the obligation, to repurchase all or any part of the shares of Common Stock acquired by the Participant under
the Award. The terms of any repurchase option will be specified in the Award Agreement. Unless otherwise set forth in the Award Agreement
(which terms will control), and subject to compliance with Applicable Laws:
Annex A-
13
(i)
The repurchase price for vested shares of Common Stock will be the Fair Market Value of the shares of Common Stock on the date of repurchase,
unless the Plan Administrator determines the Participant engaged in Cause for Termination of Service, in which case the repurchase price
will be the lower of (A) the Fair Market Value of the shares of Common Stock on the date of repurchase and (B) the original purchase
price.
(ii)
The Plan Administrator will not exercise its repurchase option until at least 6 months (or such longer or shorter period of time necessary
to avoid classification of the Award as a liability for financial accounting purposes) have elapsed following the delivery of the shares.
The Plan Administrator reserves the right to assign this right of repurchase.
(iii)
The repurchase right will expire on the earliest to occur of (A) the third anniversary of the Termination of Service or (B) the Exit
Event.
12.
Changes to Companys Common Stock
.
(a)
If the Company undertakes a stock dividend, stock split, spin-off, combination or exchange of shares, recapitalization, merger, consolidation,
distribution to stockholders other than a normal cash dividend, or other change in the Companys corporate or capital structure
that constitutes an equity restructuring transaction, as that term is used in Statement of Financial Accounting Standards Board Accounting
Standards Codification Topic 718 (or any successor thereto) and that results in (i) the outstanding shares of Common Stock, or any securities
exchanged therefor or received in their place, being exchanged for a different number or kind of securities of the Company or any other
company or (ii) new, different or additional securities of the Company or any other company being received by the holders of shares of
Common Stock, then the Plan Administrator will make proportional adjustments in (A) the maximum number and kind of securities available
for issuance under the Plan; (B) the maximum number and kind of securities issuable as Incentive Stock Options; and (C) the number and
kind of securities that are subject to any outstanding Award and the per share price of such securities, without any change in the aggregate
price to be paid under the Award, in each case as necessary to prevent the diminution or enlargement of rights under this Plan. The determination
by the Plan Administrator as to the terms of any of the foregoing adjustments will be conclusive and binding. For clarity, the issuance
by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, for cash or property, or
for labor or services rendered, either on direct sale or on the exercise of rights or warrants to subscribe therefor, or on conversion
of shares or obligations of the Company convertible into such shares or other securities, will not affect, and no adjustment by reason
thereof will be made with respect to, outstanding Awards.
(b)
Dissolution or Liquidation
.
To the extent not previously exercised or settled, and unless otherwise determined by the Plan
Administrator in its sole discretion, Awards will terminate immediately prior to the dissolution or liquidation of the Company. If a
vesting condition, forfeiture provision or repurchase right applicable to an Award has not been waived by the Plan Administrator, the
portion of the Award subject to that condition, provision or right will be forfeited immediately prior to the consummation of the dissolution
or liquidation.
(c)
Change of Control
.
The following provisions will apply to Awards in the event of a Change of Control unless otherwise provided
in the Award Agreement or any other written agreement between the Company or any Related Company and the Participant. In the event of
a Change of Control, the Plan Administrator may take one or more of the following actions with respect to Awards, contingent on the closing
or completion of the Change of Control:
(i)
arrange for the surviving or acquiring company (or its parent company) to assume or continue the Award or to substitute a similar stock-based
award for the Award (including, but not limited to, an award to acquire the same consideration paid to the stockholders of the Company
pursuant to the Change of Control) that preserves the material terms of the original Award;
(ii)
arrange for the assignment of any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to
the Award to the surviving or acquiring company (or its parent company);
Annex A-
14
(iii)
accelerate the vesting, in whole or in part, of the Award held by a Participant who has not had a Termination of Service (and, if applicable,
the time at which the Award may be exercised or settled) to a date prior to the effective time of such Change of Control as the Plan
Administrator determines (or, if the Plan Administrator does not determine such a date, to the date that is five days prior to the effective
date of the Change of Control), with such Award terminating immediately prior to the effective time of the Change of Control;
(iv)
arrange for the lapse, in whole or in part, of any reacquisition or repurchase rights held by the Company with respect to the Award on
a date prior to the effective time of such Change of Control as the Plan Administrator will determine (or, if the Plan Administrator
will not determine such a date, on the date that is five days prior to the effective date of the Change of Control);
(v)
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
of Control, in exchange for such cash consideration, if any, as the Plan Administrator, in its sole discretion, may consider appropriate;
and
(vi)
make a payment, in such form as may be determined by the Plan Administrator equal to the excess, if any, of (A) the value of the property
the Participant would have received on the exercise or settlement of the Award immediately prior to the effective time of the Change
of Control, over (B) any price payable by such holder in connection with such exercise or settlement, in consideration for the termination
of such Award at or immediately prior to the closing. For clarity, this payment may be zero if the Fair Market Value of the property
is equal to or less than the exercise or purchase price.
The
Plan Administrator need not take the same action with respect to all Awards or portions thereof or with respect to all Participants.
The Plan Administrator may take different actions with respect to the vested and unvested portions of an Award. The Plan Administrator
may provide that payments may be subject to the same terms and conditions as the payment of consideration to the holders of the Companys
Common Stock in connection with the Change of Control, including any delay as a result of escrows, earn outs, holdbacks or other contingencies.
The Plan Administrator may also provide that payments made over time will remain subject to substantially the same vesting schedule as
the Award, including any performance-based vesting metrics that applied to the Award immediately prior to the closing of the Change of
Control.
(d)
Further Adjustment of Awards
.
The Plan Administrator will have the discretion to take additional action as it determines
to be necessary or advisable with respect to Awards. Such authorized action may include (but will not be limited to) establishing, amending
or waiving the type, terms, conditions or duration of, or restrictions on, Awards so as to provide for earlier, later, extended or additional
time for exercise, lifting restrictions and other modifications, and the Plan Administrator may take such actions with respect to all
Participants, to certain categories of Participants or only to individual Participants. The Plan Administrator may take such action before
or after granting Awards to which the action relates and before or after any public announcement with respect to such sale, merger, consolidation,
reorganization, liquidation, dissolution or change of control that is the reason for such action.
(e)
No Limitations
.
The grant of Awards will in no way affect the Companys right to adjust, reclassify, reorganize or
otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or Transfer all or any part
of its business or assets.
(f)
Payment Conditions
.
By accepting an Award under the Plan, each Participant agrees that if an Award is to be terminated
in connection with a Change of Control in exchange for a payment in cash, securities or other property, a condition to receipt of any
such payment is that the Participant execute an Award termination agreement providing for, among other things, (i) the Participants
agreement and consent to (x) the amount of such consideration to be paid in respect of the Award and (y) the termination of the Award
in exchange for such consideration, (ii) the Participants agreement to be bound by the indemnification, escrow, earn-out, holdback
or similar arrangements contained in the definitive agreements relating to the Change of Control that are applicable to holders of Common
Stock generally, (iii) a customary release of any and all claims the Participant may have, whether known, unknown or otherwise, arising
from or relating to the Award and ownership of Company securities, including any claims relating to cash, equity or other compensation,
(iv) the Participants agreement to keep all non-public information provided in connection with the Change of Control transaction
confidential, and (v) other customary provisions.
Annex A-
15
(g)
Fractional Shares
.
In the event of any adjustment in the number of shares covered by any Award, each such Award will cover
only the number of full shares resulting from such adjustment, and any fractional shares resulting from such adjustment will be disregarded.
13.
Term of the Plan
.
This Plan will expire 10 years after the adoption of the Plan by the Board. The Plan Administrator may
not grant new Awards after the expiration of the Plan or the date the Plan is otherwise terminated. Stockholders of the Company must
approve the Plan and any increase in the Share Reserve and ISO Limit not later than 12 months after the Plan, Share Reserve or ISO Limit
increase, as applicable, is adopted by the Board.
14.
Amendment and Termination
.
(a)
Plan Amendment, Suspension or Termination
.
The Plan Administrator may amend, suspend or terminate the Plan or any portion
of the Plan at any time and in such respects as it will deem advisable. No amendment will be effective absent stockholder approval if
required by Applicable Law, including any amendment that would increase the Share Reserve or ISO Limit.
(b)
Award Amendment
. The Plan Administrator may amend any Award at any time. However, the Plan Administrator may not amend
an Award in a manner that materially adversely impacts the rights of the Participant holding that Award without the Participants
written consent. A Participant will not be deemed to have been materially adversely impacted if, without the consent of the Participant,
the Board amends an Award: (i) to maintain the qualified status of the Award as an Incentive Stock Option under Section 422 of the Code,
(ii) to change the terms of an Incentive Stock Option, to the extent such change results in impairment of the Award solely because it
impairs the qualified status of the Award as an Incentive Stock Option under Section 422 of the Code, (iii) to clarify the manner of
exemption from, or to bring the Award into compliance with Section 409A, (iv) to correct clerical or typographical errors, or (v) to
comply with other Applicable Laws.
15.
No Individual Rights
.
(a)
No individual or Participant will have any claim to be granted any Award under the Plan. The Company has no obligation for uniformity
of treatment of Participants under the Plan.
(b)
Nothing in the Plan or any Award will be deemed to constitute an employment contract or confer or be deemed to confer on any Participant
any right to continue in the employ of, or to continue any other service relationship with, the Company or any Related Company or limit
in any way the right of the Company or any Related Company to terminate a Participants Service relationship at any time, with
or without cause.
16.
Conditions on Issuance of Shares
.
(a)
The Company will have no obligation to issue or deliver any shares of Common Stock under the Plan or make any other distribution of benefits
under the Plan unless, in the opinion of the Companys counsel, such issuance, delivery or distribution would comply with all Applicable
Laws.
(b)
The Company will be under no obligation to any Participant to register for offering or resale or to qualify for exemption under the Securities
Act, or to register or qualify under Applicable Laws, any shares of Common Stock, security or interest in a security paid or issued under,
or created by, the Plan, or to continue in effect any such registrations or qualifications if made. If, after reasonable efforts and
at a reasonable cost, the Company is unable to obtain from any regulatory commission or agency the authority that legal counsel for the
Company deems necessary or advisable for the lawful issuance and sale of Common Stock under the Plan, the Company will be relieved from
any liability for failure to issue and sell Common Stock under those Awards.
(c)
As a condition to the receipt of Common Stock under the Plan, the Plan Administrator may require the Participant to (i) represent and
warrant that such shares are being purchased or received only for the Participants own account and without any present intention
to sell or distribute such shares, (ii) appoint the Companys Chief Executive Officer (or other member of the Board) as having
the sole and exclusive power of attorney to vote all shares of Common Stock subject to the Award, which power will be effective until
the Exit Event, and (iii) undertake additional actions as necessary to comply with Applicable Laws.
Annex A-
16
(d)
The Company may issue shares of Common Stock on a noncertificated basis, including as digital assets located on a distributed ledger
or blockchain, to the extent not prohibited by Applicable Law.
17.
No Rights as a Stockholder
.
Unless otherwise provided by the Plan Administrator or in the Award Agreement or in a written
employment, services or other agreement, no Participant will be deemed to be the holder of, or have any rights of a holder of, the shares
of Common Stock subject to an Award unless and until the date of issuance under the Plan of the shares that are the subject of such Award.
No adjustment to an Award will be made for a dividend or other right for which the record date is prior to the date the shares of Common
Stock are issued, except as provided in Section 12.
18.
Participants in Other Countries or Jurisdictions
.
The Plan Administrator may grant Awards to Eligible Persons who are foreign
nationals on such terms and conditions different from those specified in the Plan, as may, in the judgment of the Plan Administrator,
be necessary or desirable to foster and promote achievement of the purposes of the Plan. The Plan Administrator has the authority to
adopt Plan modifications, administrative procedures, subplans and the like as may be necessary or desirable to comply with provisions
of the Applicable Laws of other countries or jurisdictions in which the Company or any Related Company may operate or have employees.
19.
No Trust or Fund
.
The Plan is intended to constitute an unfunded plan. Nothing contained herein will require
the Company to segregate any monies or other property, or shares of Common Stock, or to create any trusts, or to make any special deposits
for any immediate or deferred amounts payable to any Participant. No Participant will have any rights that are greater than those of
a general unsecured creditor of the Company. Proceeds received by the Company from the sale of shares of Common Stock pursuant to Awards
will constitute general funds of the Company.
20.
Successors
.
All obligations of the Company under the Plan with respect to Awards will be binding on any successor to the
Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise,
of all or substantially all the business and/or assets of the Company. The Plan and conditions of any Award will be binding on the Participant
and the Participants estate, executor, any receiver or trustee in bankruptcy and any representative of Participants creditors.
21.
Severability
.
If any provision of the Plan or any Award is determined to be invalid, illegal or unenforceable in any jurisdiction,
or as to any person, or would disqualify the Plan or any Award under any law deemed applicable by the Plan Administrator, such provision
will be construed or deemed amended to conform to Applicable Laws. If any such provision cannot be so construed or deemed amended without,
in the Plan Administrators determination, materially altering the intent of the Plan or the Award, such provision will be stricken
as to such jurisdiction, person or Award, and the remainder of the Plan and any such Award will remain in full force and effect.
22.
Choice of Law and Venue
.
The Plan, all Awards granted thereunder, and all determinations made and actions taken pursuant
hereto, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the state of Delaware
without giving effect to principles of conflicts of law. Participants irrevocably consent to the nonexclusive jurisdiction and venue
of the state and federal courts located in the state of Delaware.
23.
Legal Requirements
.
The granting of Awards and the issuance of shares of Common Stock under the Plan are subject to all
Applicable Laws.
24.
Financial Statements
.
To the extent required by Applicable Law, the Company will provide annual financial statements of
the Company to each Participant holding an outstanding Award under the Plan. Such financial statements need not be audited and need not
be issued to key persons whose duties at the Company assure them
Annex A-
17
APPENDIX
A
DEFINITIONS
For
purposes of the Plan:
Acceleration
Conditions
means the Participant signs, and does not revoke, the Companys standard form of release of all claims
so that it is effective not later than 60 days after the Termination of Service, resigns from all positions the Participant then holds
with the Company, and otherwise complies with all continuing obligations to the Company.
Acquired
Entity
means any entity acquired by the Company or a Related Company or with which the Company or a Related Company merges
or combines.
Admin
Portal
means any third-party online stock plan administration portal used to document and administer the Plan and Awards
granted hereunder (e.g. Carta, Shareworks, etc.).
Applicable
Law
means the requirements relating to the administration of this Plan and the Awards granted hereunder under any applicable
securities, federal, state, foreign, material local or municipal or other law, statute, constitution, principle of common law, resolution,
ordinance, code, edict, decree, rule, listing rule, regulation, judicial decision, ruling or requirement issued, enacted, adopted, promulgated,
implemented or otherwise put into effect by or under the authority of any governmental body (including under the authority of any applicable
self- regulating organization such as the Nasdaq Stock Market, New York Stock Exchange, or the Financial Industry Regulatory Authority).
Award
means any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit or cash-based award or other incentive payable in
cash or in shares of Common Stock, as may be designated by the Plan Administrator from time to time.
Award
Agreement
means the written document stating the terms of the Award.
Award
Expiration Date
means the last day of the maximum term of an Award.
Board
means the Board of Directors of the Company.
Cause
,
unless otherwise defined in an Award Agreement or in a written employment, services or other agreement between the Participant and the
Company or a Related Company, means, with respect to a Participant, the occurrence of any of the following events: (i) such Participants
commission of any felony; (ii) such Participants commission of a crime involving fraud or dishonesty under the laws of the United
States or any state thereof that are applicable to that Participant and which crime is reasonably likely to result in material adverse
effects on the Company or a Related Company; (iii) such Participants material violation of any contract or agreement between the
Participant and the Company or a Related Company or material breach of any statutory duty owed to the Company or a Related Company; (iv)
such Participants unauthorized use or disclosure of the confidential information or trade secrets of the Company or a Related
Company; or (v) such Participants gross misconduct that is reasonably likely to result in material adverse effects on the Company
or a Related Company. The determination that a termination of the Participant is either for Cause or without Cause will be made by the
Plan Administrator, in its sole discretion. Any determination by the Plan Administrator that a Participant was terminated with or without
Cause for the purposes of outstanding Awards held by such Participant will have no effect on any determination of the rights or obligations
of the Company or such Participant for any other purpose.
Change
of Control
, unless the Plan Administrator determines otherwise with respect to an Award at the time the Award is granted
or unless otherwise defined for purposes of an Award in a written employment, services or other agreement between the Participant and
the Company or a Related Company, means the consummation, in a single transaction or in a series of related transactions, of any one
or more of the following events:
Annex A-
18
(1)
Any person or entity becomes the owner, directly or indirectly, of securities of the Company representing more than 50% of the combined
voting power of the Companys then outstanding securities other than by virtue of a merger, consolidation or similar transaction.
(2)
There is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after
the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not
own, directly or indirectly, either (A) outstanding voting securities representing more than 50% of the combined outstanding voting power
of the surviving entity in such merger, consolidation or similar transaction, or (B) more than 50% of the combined outstanding voting
power of the parent of the surviving entity in such merger, consolidation or similar transaction, in each case in substantially the same
proportions as their ownership of the outstanding voting securities of the Company immediately prior to such transaction; or
(3)
There is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of
the Company and its subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated
assets of the Company and its subsidiaries to a person or entity, more than 50% of the combined voting power of the voting securities
of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the outstanding voting
securities of the Company immediately prior to such sale, lease, license or other disposition.
However,
(A) the term Change of Control will not include (i) a SPAC Transaction (except as determined by the Board in its sole discretion) or
(ii) a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company, and
(B) the definition of Change of Control (or any analogous term) in an individual written agreement between the Company or any Related
Companies and the Participant will supersede the foregoing definition with respect to Awards subject to such agreement.
In
addition, a Change of Control will not be deemed to occur (A) on account of the acquisition of securities of the Company by an investor,
any affiliate thereof or any other entity or person that acquires the Companys securities in a transaction or series of related
transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities, or (B) solely
because the level of ownership held by any person or entity (the
Subject Person
) exceeds the designated percentage
threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing
the number of shares outstanding. However, if a Change of Control would occur (but for the operation of this sentence) as a result of
the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the owner of any additional
voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding
voting securities owned by the Subject Person over the designated percentage threshold, then a Change of Control will be deemed to occur.
If
necessary for compliance with Section 409A, no transaction will be a Change of Control unless it is also a change in the ownership or
effective control of the Company, or in the ownership of a substantial portion of the Companys assets, as provided in Section
409A(a)(2)(A)(v) of the Code and Treasury Regulations Section 1.409A-3(i)(5).
Code
means the Internal Revenue Code of 1986, as amended from time to time.
Committee
means a duly authorized committee of the Board that is structured to satisfy Applicable Laws for purposes of the actions being taken
by that Committee.
Common
Stock
means the common stock, par value $0.0001 per share, of the Company.
Company
means Picard Medical, Inc., a Delaware corporation.
Annex A-
19
Disability
,
unless otherwise defined by the Plan Administrator for purposes of the Plan or in an Award Agreement or in a written employment, services
or other agreement between the Participant and the Company or a Related Company, means a mental or physical impairment of the Participant
that is expected to result in death or that has lasted or is expected to last for a continuous period of 12 months or more and that causes
the Participant to be unable to perform the Participants material duties for the Company or a Related Company and to be engaged
in any substantial gainful activity, in each case as determined by the Companys chief human resources officer or other person
performing that function or, in the case of directors and executive officers, the Plan Administrator, each of whose determination will
be conclusive and binding.
Effective
Date
means the date the Plan is approved by the Board.
Eligible
Person
means any person eligible to receive an Award as set forth in Section 5 of the Plan.
Exchange
Act
means the Securities Exchange Act of 1934, as amended from time to time.
Exit
Event
means the earliest to occur of (i) the closing of a Change of Control, (ii) the consummation of an IPO or (iii)
the consummation of a SPAC Transaction.
Fair
Market Value
means the per share fair market value of the Common Stock as established in good faith by the Plan Administrator.
In general, if the Common Stock is listed on an established stock exchange or national market system, the Plan Administrator will use
the closing sales price for the Common Stock on any given date during regular trading, or if not trading on that date, such price on
the last preceding date on which the Common Stock was traded, unless determined otherwise by the Plan Administrator using such methods
or procedures as it may establish. If the Common Stock is not listed on a national stock exchange or national market system, the Plan
Administrator will determine Fair Market Value in a manner consistent with Sections 409A and 422 of the Code. However, in determining
the value of a share for purposes of tax reporting purposes and such other purposes as determined by the Plan Administrator, the Plan
Administrator may calculate Fair Market Value using the foregoing methods, the actual sales price in the transaction at issue (e.g.,
sell to cover),
or such other value determined by the Companys general counsel or principal financial officer
in good faith in a manner that complies with applicable tax laws.
Good
Reason
will have the meaning ascribed to such term in any written agreement between the Participant and the Company defining
such term as applicable to an Award and, in the absence of such agreement, such term means, with respect to a Participant, the Participants
resignation from all positions such Participant then-holds with the Company following: (i) a reduction in the Participants base
salary of more than 10% or (ii) the required relocation of Participants primary work location to a facility that increases the
Participants one-way commute by more than 50 miles, in either case, only if (x) Participant provides written notice to the Companys
Chief Executive Officer within 30 days following such event identifying the nature of the event, (y) the Company fails to cure such event
within 30 days following receipt of such written notice and (z) Participants resignation is effective not later than 30 days thereafter.
Grant
Date
means the later of (a) the date on which the Plan Administrator completes the corporate action authorizing the grant
of an Award or such later date specified by the Plan Administrator and (b) the date on which all conditions precedent to an Award have
been satisfied, provided that conditions to the exercisability or vesting of Awards will not defer the Grant Date.
Immediate
Family
means lineal descendant or antecedent, spouse (or spouses antecedents), ex-spouse (but solely in connection
with a Transfer made pursuant to a divorce settlement), parent, sibling (or their descendants), stepchild (or their antecedents or descendants),
sibling of a parent (or their antecedents or descendants), spouse of a sibling (or their antecedents or descendants) and will include
adoptive relationships, or any person sharing Participants household (other than a tenant or an employee). For purposes of this
definition, spouse includes spousal equivalents as such term is defined in Rule 501(j) of Regulation D under
the Securities Act.
Annex A-
20
Incentive
Stock Option
or
ISO
means an Option granted with the intention that it qualify as an incentive
stock option as that term is defined for purposes of Section 422 of the Code or any successor provision.
IPO
means the first sale of Common Stock to the general public pursuant to a registration statement filed with and declared effective by
the Securities and Exchange Commission under the Securities Act, including a registration statement in connection with a direct listing,
but excluding a registration statement relating solely to the issuance of Common Stock pursuant to a business combination or an employee
incentive or benefit plan.
Nonqualified
Stock Option
,
Nonstatutory Stock Option
, or
NSO
means an Option
that does not qualify as an Incentive Stock Option.
Option
means a right to purchase Common Stock granted under Section 7 of the Plan. Options are either Incentive Stock Options or Nonstatutory
Stock Options.
Option
Term
means the maximum term of an Option as set forth in Section 7(b) of the Plan.
Participant
means any Eligible Person to whom an Award is granted.
Performance
Metrics
means performance objectives measuring achievement in earnings (including earnings per share or net earnings);
earnings before interest, taxes and depreciation; earnings before interest, taxes, depreciation and amortization; total stockholder return;
return on equity or average stockholders equity; return on assets, investment, or capital employed; stock price; margin (including
gross margin); income (before or after taxes); operating income; operating income after taxes; pre-tax profit; operating cash flow; sales
or revenue targets; increases in revenue or product revenue; expenses and cost reduction goals; improvement in or attainment of working
capital levels; economic value added (or an equivalent metric); market share; cash flow; cash flow per share; share price performance;
debt reduction; customer satisfaction; stockholders equity; capital expenditures; debt levels; operating profit or net operating
profit; workforce diversity; growth of net income or operating income; billings; financing; regulatory milestones; stockholder liquidity;
corporate governance and compliance; environmental or climate impact; social good impact; intellectual property; personnel matters; progress
of internal research; progress of partnered programs; partner satisfaction; budget management; partner or collaborator achievements;
internal controls, including those related to the Sarbanes-Oxley Act of 2002; investor relations, analysts and communication; implementation
or completion of projects or processes; employee retention; strategic partnerships or transactions (including in-licensing and out-licensing
of intellectual property); establishing relationships with respect to the marketing, distribution and sale of the Companys products;
supply chain achievements; co-development, co-marketing, profit sharing, joint venture or other similar arrangements; individual performance
goals; corporate development and planning goals; and other measures of performance selected by the Plan Administrator. Performance Metrics
may be measured on an absolute basis or relative to a pre-established target, across or within Performance Periods, and, with respect
to financial metrics, in accordance with or with deviations from either United States Generally Accepted Accounting Principles (GAAP)
or International Accounting Standards Board (IASB) principles.
Plan
means the
Amended and Restated
2021 Equity Incentive Plan.
Plan
Administrator
has the meaning set forth in Section 3(a) of the Plan.
Related
Company
means any parent or subsidiary of the Company, as such terms are defined under Rule
405 of the Securities Act. The Plan Administrator will determine status as a Related Company.
Restricted
Stock
means an Award of shares of Common Stock, either without payment of a purchase price (a
Restricted
Stock Bonus Award
) or with payment of a purchase price (a
Restricted Stock Purchase Award
).
Annex A-
21
Restricted
Stock Unit
or
RSU
means an Award denominated in units of Common Stock that represents an unfunded,
unsecured right to receive the Fair Market Value of one share of Common Stock for each unit subject to the Award in cash, Common Stock
or other securities, on the date of vesting or settlement.
Section
409A
means Section 409A of the Code.
Section
83(b)
means Section 83(b) of the Code.
Securities
Act
means the Securities Act of 1933, as amended from time to time.
Service
means there has not been a Termination of Service with respect to a Participant.
SPAC
Transaction
means a transaction in which the Companys outstanding shares of capital stock are exchanged for or
otherwise converted into securities that are publicly listed, or contemplated to be publicly listed pursuant to the transaction governing
such exchange or conversion, on a securities exchange, excluding an IPO, but including through a merger, acquisition, business combination
or similar transaction, in one transaction or series of related transactions, involving a vehicle commonly known as a special purpose
acquisition company (SPAC), a reverse merger or otherwise.
Stock
Appreciation Right
or
SAR
means a right to receive, in cash, shares of Common Stock or other
securities, (i) the Fair Market Value per share of Common Stock on the date of exercise minus the grant price per share of Common Stock
subject to the SAR, multiplied by (ii) the number of shares of Common Stock with respect to which the SAR is exercised.
Substitute
Awards
means Awards granted or shares of Common Stock issued by the Company in substitution or exchange for awards previously
granted by an Acquired Entity.
Successor
Company
means the surviving company, the successor company, the acquiring company or its parent, as applicable, in connection
with a Change of Control.
Termination
of Service
, unless the Plan Administrator determines otherwise with respect to an Award, means a termination of employment
or service relationship with the Company or a Related Company for any reason, whether voluntary or involuntary, including by reason of
death or Disability. Any question as to whether and when there has been a Termination of Service for the purposes of an Award and the
cause of such Termination of Service will be determined by the Companys chief human resources officer or other person performing
that function or, with respect to directors and executive officers, by the Plan Administrator, whose determination will be conclusive
and binding. Transfer of a Participants employment or service relationship between the Company and any Related Company will not
be considered a Termination of Service for purposes of an Award. Unless the Plan Administrator determines otherwise, a Termination of
Service will be deemed to occur if the Participants employment or service relationship is with an entity that has ceased to be
a Related Company. A Participants change in status from an employee of the Company or a Related Company to a nonemployee director,
consultant, advisor or independent contractor of the Company or a Related Company, or a change in status from a nonemployee director,
consultant, advisor or independent contractor of the Company or a Related Company to an employee of the Company or a Related Company,
will not be considered a Termination of Service.
Transfer
means, as the context may require, (a) any sale, assignment, pledge (as collateral for a loan or as security for the performance of an
obligation or for any other purpose), hypothecation, mortgage, encumbrance or other disposition, whether by contract, gift, will, intestate
succession, operation of law or otherwise, of all or any part of an Award or shares issued thereunder, as applicable, (b) any transaction
designed to give the stockholder essentially the same economic benefit as any of the foregoing, and (c) any verb equivalent of the foregoing.
Vesting
Commencement Date
means the Grant Date or such other date selected by the Plan Administrator as the date from which an
Award begins to vest.
Warrant
means a warrant to purchase Common Stock granted under Section 7 of the Plan.
Annex A-
22
2025 1 . Approval o f a n amendmen t to the Company s 202 1 Equity Incentive Plan. Note : In their discretion , the proxie s ar e authorize d to vote upo n such othe r busines s a s may propert y come befor e the Special Meeting of Stockholders o r an y postponemen t o r adjournmen t thereof. PICAR D MEDICA L , IN C . FOL D HER E • D O NO T SE P AR A T E • INSER T I N ENVELOP E PROVIDE D Signature Signature , i f hel d jointly Date year. Note : Pleas e sig n exactl y a s you r name(s ) appear(s ) hereon . Whe n signin g a s attorne y , executo r, administrato r, o r othe r fiduciar y , pleas e giv e ful l titl e a s such . Joint owner s shoul d eac h sig n personall y . Al l holder s mus t sign . I f a corporatio n o r partnership , pleas e sig n i n ful l corporat e o r partnershi p nam e b y authorize d o f fice r . Please mark your votes lik e this X 20091 5 Picard Medical, Inc. Proxy Car d Rev 1 Front CONTRO L NUMBER PROXY TH E BOAR D O F DIREC T OR S RECOMMEND S YO U VOT E FO R TH E FOLLOWING PROPOSA L : FOR AGAINST ABS T AIN PLEASE D O NO T RETUR N THE PROXY CARD IF YOU AR E VOTING ELECTRONICAL L Y . YOUR VOTE IS IMPOR T AN T . PLEASE VOTE T OD A Y . V ot e b y Internet , Smartphon e o r T able t - QUIC K EAS Y IMMEDI A T E - 2 4 Hour s a Da y , 7 Day s a W ee k o r b y Mail Y our Mobile or Internet vot e authorize s the named proxies to vot e you r share s in the sam e manne r a s if yo u marked , signe d an d returne d you r proxy card . V otes submitte d electronicall y over the Internet mus t be receive d by 10 : 5 9 p . m . , Eastern T ime, on October 9 , 2025 . INTERNET ww w .cstproxyvote.com Us e th e Interne t t o vot e you r prox y . Hav e your prox y car d availabl e whe n yo u acces s th e above website . Follo w th e prompt s t o vot e you r shares. V ot e a t th e Meetin g – I f yo u pla n t o atten d th e virtua l online Specia l Meeting , yo u wil l nee d you r 1 2 digit contro l numbe r t o vot e electronicall y a t th e S pecial Meeting. T o attend , visit: https://ww w .cstprox y .com/picardmedical/2025 MOBIL E VOTING O n you r Smartphone / T ablet , ope n th e Q R Reader an d sca n th e belo w image . Onc e th e votin g site i s displayed , ente r you r Contro l Numbe r fro m the prox y car d an d vot e you r shares. MAI L – Mark , sig n an d dat e you r prox y car d and retur n i t i n th e postage - pai d envelop e provided.
2025 FOL D HER E • D O NO T SE P AR A T E • INSER T I N ENVELOP E PROVIDE D PROXY THIS PROXY IS SOLICITED ON BEHAL F OF THE BOAR D OF DIREC T ORS PICAR D MEDICA L , IN C . The stockholder(s) hereb y appoint(s ) Patrick N J Schnegelsberg an d Bernard Skaggs o r any o f them, a s proxies , eac h wit h the powe r to appoin t hi s o r he r substitute, an d hereb y authorize(s) them to represent an d to vote, a s designate d o n the reverse side o f this ballot , al l o f the shares of common stock o f Picard Medical, Inc . that the stockholder(s) is/ar e entitle d to vote a t the Special meeting o f Stockholders to b e hel d virtually a t 8 : 0 0 p . m . , Eastern T ime , o n October 10 , 2025 , at https : //ww w . cstprox y . com/picardmedical/ 202 5 , an d an y adjournmen t o r postponemen t thereof . THI S PROX Y , WHE N PROPER L Y EXECUTE D , WIL L B E VOTE D A S DIRECTE D HEREI N . IF N O DIRECTIO N I S GIVE N , THI S PROX Y WIL L B E VOTE D FO R TH E PROPOSA L , AN D I N THE DISCRETIO N O F TH E PROXIE S , UPO N SUC H OTHE R BUSINES S A S M A Y PROPER L Y COME BEFOR E TH E SPECIA L MEETIN G O F S T OCKHOLDER S . (Continued an d to be marked , dated an d signe d on the other side) Importan t Notic e Regardin g th e Interne t A vailabilit y o f Prox y Material s for th e Specia l Meetin g o f Stockholder s o f Picar d Medical , Inc. t o b e hel d o n Octobe r 10 , 2025 T o view the 202 5 Proxy Statement an d to Attend the Special Meeting, please go to: https://ww w .cstprox y .com/picardmedical/2025 20091 5 Picard Medical, Inc. Proxy Car d Rev 1 Back
TABLE OF CONTENTS
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR
WHICH
THE 13F WAS FILED.
FUND
NUMBER OF SHARES
VALUE ($)
PUT OR CALL
Directors of Picard Medical, Inc. - as per the
latest proxy Beta
Customers and Suppliers of Picard Medical, Inc.
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Bonds of Picard Medical, Inc.
Price Graph
Price
Yield
Insider Ownership of Picard Medical, Inc.
company Beta
Owner
Position
Direct Shares
Indirect Shares
AI Insights
Summary Financials of Picard Medical, Inc.
Beta
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