Common use of Inducement Grant Clause in Contracts

Inducement Grant. Subject to approval by the Company’s Board and as a material inducement to you agreeing to become employed by the Company, as soon as practicable following the Effective Date, the Company will grant you (i) nonqualified stock options to purchase a number of shares of the Company’s common stock equal to 0.75% of the total outstanding shares of the Company’s common stock as of the Effective Date with an exercise price equal to the fair market value of the underlying shares on the date of grant as determined by the Board (the “Inducement Options”) and (ii) a number of restricted stock units (the “Inducement RSUs”) equal to 0.25% of the total outstanding shares of the Company’s common stock as of the Effective Date. The Inducement Options will vest over a four year period following your grant date, with 25% of the Inducement Options vesting on the first anniversary of your initial grant date, and the remainder vesting in 36 equal monthly installments on each monthly anniversary thereafter, in each case, subject to your continued services with the Company through the applicable vesting dates. The Inducement RSUs will vest over a four-year period following your initial grant date, with 25% of the RSUs vesting on each anniversary of your grant date, in each case, subject to your continued services with the Company through the applicable vesting dates. The Inducement Options and Inducement RSUs will be governed by the terms of the related award agreements, the Company’s 2018 Equity Inducement Plan and the terms and conditions approved by the Board. The Inducement Options and Inducement RSUs will be granted in compliance with NASDAQ Listing Rule 5635(c)(4) as a material inducement to you entering into employment with the Company.