Common use of Equity Stake Clause in Contracts

Equity Stake. A. Within ten (10) days of the Start Date, the Company will grant Executive an option to purchase seventy-two million (72,000,000) shares of the Company’s stock (which is equal to eight percent (8%) of the Company’s issued and outstanding shares). B. The exercise price for such option will be equal to the fair market value of the underlying common stock on the date of the grant, with fair market value to be determined with reference to the closing stock price on the OTC-BB on the grant date, or if the common stock is no longer quoted on the OTC-BB, then the fair market value shall be fixed by the Board in accordance with a valuation conducted in compliance with Section 409A of the Internal Revenue Code of 1986, as amended. C. The Executive’s options shall be subject to Company’s standard four (4) year vesting provisions: twenty-five percent (25%) to vest after the first twelve (12) months of continuous service with the Company, with monthly ratable vesting thereafter for the remaining option shares. D. The Executive’s options will vest fully upon the occurrence of a Triggering Event (as defined in the Company’s Stock Plan).