Common use of Additional Stock Option Clause in Contracts

Additional Stock Option. If the Company closes an offering of its equity securities at a price per share of the Company’s Preferred Stock of at least $1.75, and the Executive is actively employed by the Company on the date of such closing, the Company shall grant the Executive an additional stock option (“Additional Option”) to purchase Shares representing 1% of the Company’s Fully Diluted Equity, taking into account the securities issued in the applicable offering), after giving effect to such grant. The Additional Option will vest as follows: (i) 25% of the Shares underlying the Additional Option shall vest and become exercisable on the date of grant (“Grant Date”); and (ii) the remaining 75% of the Shares underlying the Additional Option shall vest and become exercisable in 36 substantially equal monthly installments, with each such installment vesting on the first day of every calendar month commencing on the first day of the first full calendar month following the Grant Date, subject to the Executive’s continued employment by the Company through each such date. Notwithstanding anything to the contrary, if the Company undergoes a Change of Control at a price per share of the Company’s Preferred Stock of at least $1.75 but less than $3.50, and the Executive is still actively employed by the Company on the closing of such Change of Control, the Executive shall be entitled to the immediate vesting of any unvested Shares subject to the Additional Option, then held by the Executive.