As
filed with the Securities and Exchange Commission on August 14, 2023
Registration
No. 333-
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
S-8
REGISTRATION
STATEMENT
Under
The Securities Act of 1933
BARFRESH
FOOD GROUP INC.
(Exact
name of registrant as specified in its charter)
| Delaware |
|
27-1994406 |
(State
or other jurisdiction of
incorporation
or organization) |
|
(I.R.S.
Employer
Identification
Number) |
3600
Wilshire Boulevard, Suite 1720
Los
Angeles, California |
|
90010 |
| (Address
of Principal Executive Offices) |
|
(Zip
Code) |
Barfresh
Food Group Inc. 2023 Equity Incentive Plan
(Full
title of the plan)
Riccardo
Delle Coste, Chief Executive Officer
3600
Wilshire Blvd., Suite 1720
Los
Angeles, California 90010
(310)
598-7113
(Name,
address and telephone number of agent for service)
Copies
to:
Fay
Matsukage
Doida
Crow Legal LLC
7979
East Tufts Avenue, Suite 1750
Denver,
Colorado 80237
(720)
306-1001
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer |
☐ |
|
Accelerated filer |
☐ |
| Non-accelerated filer |
☐ |
|
Smaller reporting company |
☒ |
| |
|
|
Emerging growth company |
☒ |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐
PART
I
INFORMATION
REQUIRED IN THE PROSPECTUS
The
information specified in Item 1 and Item 2 of Part I of Form S-8 is omitted from this Registration Statement on Form S-8 (the “Registration
Statement”) in accordance with the provisions of Rule 428 under the Securities Act and the introductory note to Part I of Form
S-8. The documents containing the information specified in Part I of Form S-8 will be delivered to the participants in the equity benefit
plans covered by this Registration Statement as specified by Rule 428(b)(1) under the Securities Act.
PART
II
INFORMATION
REQUIRED IN REGISTRATION STATEMENT
Item
3. Incorporation of Documents by Reference.
Barfresh
Food Group Inc. (the “Registrant”) hereby incorporates by reference into this Registration Statement the following
documents previously filed with the Securities and Exchange Commission (the “SEC”):
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(1) |
The
Registrant’s Annual Report on Form 10-K (File No. 001-41228) for the fiscal year ended December 31, 2022 filed with the SEC
on March 2, 2023, and Quarterly Reports on Form 10-Q (File No. 001-41228) for the quarter ended March 31, 2023 filed with the SEC
on April 27, 2023 and the quarter ended June 30, 2023 filed with the SEC on August 14, 2023. |
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(2) |
The
Registrant’s Current Reports on Form 8-K filed on March 2, 2023, April 27, 2023, May 5, 2023, June 16, 2023, June 21, 2023,
and August 14, 2023 (other than information furnished rather than filed). |
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|
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(3) |
The description of the Registrant’s Common Stock contained in Exhibit 4.20 to the Registrant’s Annual Report on Form 10-K (File No. 001-41228) for the fiscal year ended December 31, 2019 filed with the SEC on April 13, 2020, including any amendment or report filed for the purpose of updating such description. |
All
documents filed by the Registrant pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) on or after the date of this Registration Statement and prior to the filing of a post-effective
amendment to this Registration Statement that indicates that all securities offered have been sold or that deregisters all securities
then remaining unsold shall be deemed to be incorporated by reference in this Registration Statement and to be part hereof from the date
of filing of such documents; provided, however, that documents or information deemed to have been furnished and not filed
in accordance with the rules of the SEC shall not be deemed incorporated by reference into this Registration Statement. Any statement
contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for
purposes of this Registration Statement to the extent that a statement contained herein or in any subsequently filed document which also
is deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part of this Registration Statement.
Item
4. Description of Securities.
Not
applicable.
Item
5. Interests of Named Experts and Counsel.
None.
Item
6. Indemnification of Directors and Officers.
Section
102(b)(7) of the Delaware General Corporation Law (DGCL) allows a corporation to provide in its certificate of incorporation that a director
of the corporation will not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary
duty as a director, except where the director breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct
or knowingly violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law
or obtained an improper personal benefit. The Registrant’s certificate of incorporation provides for this limitation of liability.
Section
145 of the DGCL, provides, among other things, that a Delaware corporation may indemnify any person who was, is or is threatened to be
made, party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative
(other than an action by or in the right of such corporation), by reason of the fact that such person is or was an officer, director,
employee or agent of such corporation or is or was serving at the request of such corporation as a director, officer, employee or agent
of another corporation or enterprise. The indemnity may include expenses (including attorneys’ fees), judgments, fines and amounts
paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, provided such
person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the corporation’s best interests
and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was unlawful. A Delaware
corporation may indemnify any persons who were or are a party to any threatened, pending or completed action or suit by or in the right
of the corporation by reason of the fact that such person is or was a director, officer, employee or agent of another corporation or
enterprise. The indemnity may include expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection
with the defense or settlement of such action or suit, provided such person acted in good faith and in a manner he or she reasonably
believed to be in or not opposed to the corporation’s best interests, provided further that no indemnification is permitted without
judicial approval if the officer, director, employee or agent is adjudged to be liable to the corporation. Where an officer or director
is successful on the merits or otherwise in the defense of any action referred to above, the corporation must indemnify him or her against
the expenses (including attorneys’ fees) which such officer or director has actually and reasonably incurred.
Section
145 further authorizes a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee
or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another
corporation or enterprise, against any liability asserted against such person and incurred by such person in any such capacity, or arising
out of his or her status as such, whether or not the corporation would otherwise have the power to indemnify such person under Section
145.
The
Registrant’s bylaws provide that the Registrant must indemnify and advance expenses to its directors and officers to the full extent
authorized by the DGCL.
The
indemnification rights set forth above shall not be exclusive of any other right which an indemnified person may have or hereafter acquire
under any statute, any provision of the Registrant’s certificate of incorporation, bylaws, agreement, vote of stockholders or disinterested
directors or otherwise. Notwithstanding the foregoing, the Registrant shall not be obligated to indemnify a director or officer in respect
of a proceeding (or part thereof) instituted by such director or officer, unless such proceeding (or part thereof) has been authorized
by the Registrant’s board of directors pursuant to the applicable procedure outlined in the Registrant’s bylaws.
Section
174 of the DGCL provides, among other things, that a director, who willfully or negligently approves of an unlawful payment of dividends
or an unlawful stock purchase or redemption, may be held jointly and severally liable for such actions. A director who was either absent
when the unlawful actions were approved or dissented at the time may avoid liability by causing his or her dissent to such actions to
be entered in the books containing the minutes of the meetings of the Registrant’s board of directors at the time such action occurred
or immediately after such absent director receives notice of the unlawful acts.
The
Registrant currently maintains and expects to continue to maintain standard policies of insurance that provide coverage (1) to its directors
and officers against loss rising from claims made by reason of breach of duty or other wrongful act and (2) to us with respect to indemnification
payments that the Registrant may make to such directors and officers.
These
provisions may discourage stockholders from bringing a lawsuit against the Registrant’s directors for breach of their fiduciary
duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and officers, even
though such an action, if successful, might otherwise benefit the Registrant and its stockholders. Furthermore, a stockholder’s
investment may be adversely affected to the extent the Registrant pays the costs of settlement and damage awards against officers and
directors pursuant to these indemnification provisions.
The
Registrant believes that these provisions, the insurance, and the indemnity agreements are necessary to attract and retain talented and
experienced officers and directors.
Item
7. Exemption from Registration Claimed.
Not
applicable.
Item
8. Exhibits.
The
Registrant has filed the exhibits listed on the accompanying Exhibit Index of this Registration Statement.
EXHIBIT
INDEX
Item
9. Undertakings.
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A. |
The
undersigned Registrant hereby undertakes: |
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(1) |
To
file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement: |
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(i) |
To
include any prospectus required by Section 10(a)(3) of the Securities Act; |
(ii)
To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective
amendment thereof) that, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration
Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration
Fee” table in the effective Registration Statement; and
(iii)
To include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or
any material change to such information in the Registration Statement; provided, however, that paragraphs (A)(1)(i) and (A)(1)(ii)
do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports
filed with or furnished to the Commission by the Registrant pursuant to Section 13 or Section 15(d) of the Exchange Act that are incorporated
by reference in this Registration Statement.
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(2) |
That,
for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a
new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof. |
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(3) |
To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering. |
B.
The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of
the Registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing
of an employee benefit plan’s annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in
the Registration Statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering
of such securities at that time shall be deemed to be the initial bona fide offering thereof.
C.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Commission
such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that
a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director,
officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification
by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that
it meets all of the requirements for filing on Form S-8 and has duly caused this Registration Statement to be signed on its behalf by
the undersigned, thereunto duly authorized, in the City of Los Angeles, State of California, on this 14th day of August, 2023.
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BARFRESH FOOD GROUP INC. |
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|
|
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By: |
/s/
Riccardo Delle Coste |
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|
Riccardo Delle Coste |
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|
Chief Executive Officer |
POWER
OF ATTORNEY
KNOW
ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Riccardo Delle Coste and
Lisa Roger, and each of them, as his or her true and lawful attorney-in-fact and agent with full power of substitution and resubstitution,
for such person in any and all capacities, to sign any and all amendments to this Registration Statement (including post-effective amendments)
on Form S-8, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorney-in-fact, proxy, and agent full power and authority to do and perform each and every act and thing
requisite and necessary to be done in connection therewith, as fully for all intents and purposes as such person might or could do in
person, hereby ratifying and confirming all that any said attorney-in-fact, proxy and agent, or any substitute of any of them, may lawfully
do or cause to be done by virtue hereof.
Pursuant
to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities
and on the dates indicated:
| Signature |
|
Title |
|
Date |
| |
|
|
|
|
| /s/ Riccardo
Delle Coste |
|
Chief Executive Officer and Director |
|
August 14, 2023 |
| Riccardo Delle Coste |
|
(Principal Executive Officer) |
|
|
| |
|
|
|
|
| /s/ Lisa
Roger |
|
Chief Financial Officer |
|
August 14, 2023 |
| Lisa Roger |
|
(Principal Financial and Accounting Officer) |
|
|
| |
|
|
|
|
| /s/ Steven
Lang |
|
Director |
|
August 14, 2023 |
| Steven Lang |
|
|
|
|
| |
|
|
|
|
| /s/ Arnold
Tinter |
|
Director |
|
August 14, 2023 |
| Arnold Tinter |
|
|
|
|
| |
|
|
|
|
| /s/ Joseph
M. Cugine |
|
Director |
|
August 14, 2023 |
| Joseph M. Cugine |
|
|
|
|
| |
|
|
|
|
| /s/ Isabelle
Ortiz-Cochet |
|
Director |
|
August 14, 2023 |
| Isabelle Ortiz-Cochet |
|
|
|
|
| |
|
|
|
|
| /s/ Alexander
H. Ware |
|
Director |
|
August 14, 2023 |
| Alexander H. Ware |
|
|
|
|
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|
|
|
|
| /s/ Justin
Borus |
|
Director |
|
August 14, 2023 |
| Justin Borus |
|
|
|
|
Exhibit 4.5
BARFRESH
FOOD GROUP INC.
2023
EQUITY INCENTIVE PLAN
1.
PURPOSE. The Barfresh Food Group Inc. 2023 Equity Incentive Plan has two complementary purposes: (a) to attract and retain
outstanding individuals to serve as officers, Employees, Directors, and Consultants to the Company and its Affiliates, and (b) to increase
stockholder value. The Plan will provide participants with incentives to increase stockholder value by offering the opportunity to acquire
shares of the Company’s Common Stock or receive monetary payments based on the value of such Common Stock, on the potentially favorable
terms that this Plan provides.
2.
EFFECTIVE DATE. The Plan shall become effective upon its adoption by the Board of Directors of the Company, subject to approval
by the stockholders of the Company within twelve (12) months of the effective date. Any Awards granted under the Plan prior to such stockholder
approval shall be conditioned on such approval.
3.
DEFINITIONS. Capitalized terms used in this Plan have the following meanings:
(a)
“Affiliate” means any entity that, directly or through one or more intermediaries, is controlled by, controls, or is under
common control with, the Company within the meaning of Code Sections 414(b) or (c), provided that, in applying such provisions, the phrase
“at least fifty percent (50%)” shall be used in place of “at least eighty percent (80%)” each place it appears
therein; and provided further that for Options and Stock Appreciation Rights an “Affiliate” shall be an entity with respect
to which the Common Stock will qualify as “service recipient stock” within the meaning of Section 409A.
(b)
“Award” means a grant of Options (as defined in Section 3(s) hereof), Stock Appreciation Rights (as defined in Section 3(bb)
hereof), Performance Share Awards (as defined in Section 3(v) hereof), Restricted Stock (as defined in Section 3(x) hereof), and/or Restricted
Stock Units (as defined in Section 3(y) hereof).
(c)
“Award Agreement” means a written agreement, contract, certificate or other instrument or document evidencing the terms and
conditions of an individual Award granted under the Plan which may, in the discretion of the Company, be transmitted electronically to
any Participant. Each Award Agreement shall be subject to the terms and conditions of the Plan.
(d)
“Board” means the Board of Directors of the Company.
(e)
“Cause” means:
(i)
With respect to any Employee or Consultant, unless the applicable Award Agreement states otherwise: (A) If the Employee or Consultant
is party to an employment or service agreement with the Company or its Affiliates and such agreement provides for definition of Cause,
the definition contained therein; or (B) if no such agreement exists, or if such agreement does not define Cause: (1) the commission
of, or plea of guilty or no contest to, a felony or a crime involving moral turpitude or the commission of any other act involving willful
malfeasance or material fiduciary breach with respect to the Company or an Affiliate; (2) conduct that brings or is reasonably likely
to bring the Company or an Affiliate negative publicity or into public disgrace, embarrassment, or disrepute; (3) gross negligence or
willful misconduct with respect to the Company or an Affiliate; (4) material violation of state or federal securities laws; or (5) material
violation of the Company’s written policies or codes of conduct, including written policies related to discrimination, harassment,
performance of illegal or unethical activities, and ethical misconduct.
(ii)
With respect to any Director, unless the applicable Award Agreement states otherwise, a determination by a majority of the disinterested
Board members that the Director has engaged in any of the following: (A) malfeasance in office; (B) gross misconduct or neglect; (C)
false or fraudulent misrepresentation including the Director’s appointment; (D) willful conversion of corporate funds; or (E) repeated
failure to participate in Board meetings on a regular basis despite having received proper notice of the meetings in advance.
The
Committee, in its absolute discretion, shall determine the effect of all matters and questions relating to whether a Participant has
been discharged for Cause.
(f)
“Change of Control” shall mean the occurrence of any one or more of the following:
(i)
The sale, lease, transfer, conveyance or other disposition, in one or a series of related transactions, of substantially all of the assets
of the Company to any person; or
(ii)
Any person becomes the beneficial owner (except that a person shall be deemed to have beneficial ownership of all Shares that any such
Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time) directly or indirectly
of more than fifty percent (50%) of the total voting power of the voting stock of the Company, including by way of merger, consolidation
or otherwise; or
(iii)
A change in the composition of the Board such that individuals who, as of the beginning of any period of twenty-four (24) months determined
on a rolling basis (the “measurement date”), constitute the Board (the “Incumbent Board”) cease for any reason
to constitute a majority of the Board; provided, however, that any individual who becomes a member of the Board subsequent to
the measurement date, whose election, or nomination for election by the Company’s stockholders, was approved by a vote of a majority
of those individuals then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent
Board; but, provided further, that any such individual whose initial assumption of Board membership occurs as a result of either
an actual or threatened election contest with respect to the election or removal of Directors of the Board or other actual or threatened
solicitation of proxies or consents by or on behalf of a person other than the Board shall not be so considered as a member of the Incumbent
Board.
(iv)
Notwithstanding the foregoing, (A) if any payment or benefit pursuant to an Award is “nonqualified deferred compensation”
under Code Section 409A to which an exception to Code Section 409A does not apply, and the payment or benefit of such Award is triggered
by a Change in Control, the events described above shall not constitute a Change in Control with respect to such nonqualified deferred
compensation unless the event constitutes a change in ownership or effective control of the Company, or a change in the ownership of
a substantial portion of the assets of the Company, as described in Code Section 409A; and (B) for the avoidance of doubt, a Change of
Control shall not be deemed to have occurred as a result of a sale or other disposition of any Affiliate (or any Affiliate’s assets)
by which a Participant may be employed.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 2 |
(f)
“Code” means the Internal Revenue Code of 1986, as amended. Any reference to a specific provision of the Code includes any
successor provision and the regulations promulgated under such provision.
(g)
“Committee” means the Compensation Committee of the Board (or a successor committee with similar authority) or if no such
committee is named by the Board, than it shall mean the Board.
(h)
“Common Stock” means the Common Stock of the Company, par value $0.000001 per share, or any such other securities of the
Company into which such common stock shall be changed by reason of a recapitalization, merger, consolidation, split-up, combination,
exchange of shares, or similar transaction; provided, however, that such other securities shall, for Options and Stock Appreciation Rights,
always constitute “service recipient stock” within the meaning of Code Section 409A.
(i)
“Company” means Barfresh Food Group Inc., a Delaware corporation, or any successor thereto.
(j)
“Consultant” means any individual or entity which performs bona fide services to the Company or an Affiliate, other than
as an Employee or Director, and who may be offered securities registerable pursuant to a registration statement on Form S-8 under the
Securities Act.
(k)
“Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee,
Consultant or Director, is not interrupted or terminated. The Participant’s Continuous Service shall not be deemed to have terminated
merely because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant
or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption or
termination of the Participant’s Continuous Service; provided further that if any Award is subject to Section 409A of the
Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code. For example, a change in status
from an Employee of the Company to a Director of an Affiliate will not constitute an interruption of Continuous Service. The Committee
or its delegate, in its sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any
leave of absence approved by that party, including sick leave, military leave or any other personal or family leave of absence. The Committee
or its delegate, in its sole discretion, may determine whether a Company transaction, such as a sale or spin-off of a division or subsidiary
that employs a Participant, shall be deemed to result in a termination of Continuous Service for purposes of affected Awards, and such
decision shall be final, conclusive and binding.
(l)
“Director” means a member of the Board.
(m)
“Disability” means, unless the applicable Award Agreement says otherwise, that the Participant is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment; provided, however, for purposes
of determining the term of an incentive stock option pursuant to Section 7(e) hereof, the term Disability shall have the meaning ascribed
to it under Section 22(e)(3) of the Code. The determination of whether an individual has a Disability shall be determined under procedures
established by the Committee. Except in situations where the Committee is determining Disability for purposes of the term of an incentive
stock option pursuant to Section 7(e) hereof within the meaning of Section 22(e)(3) of the Code, the Committee may rely on any determination
that a Participant is disabled for purposes of benefits under any long-term disability plan maintained by the Company or any Affiliate
in which a Participant participates.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 3 |
(n)
“Employee” means any person, including an officer or Director, employed by the Company or an Affiliate; provided, that
for purposes of determining eligibility to receive Incentive Stock Options, an Employee shall mean an employee of the Company or a parent
or subsidiary corporation within the meaning of Section 424 of the Code. Mere service as a Director or payment of a director’s
fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate.
(o)
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time. Any reference to a specific provision
of the Exchange Act shall be deemed to include any successor provision thereto.
(p)
“Fair Market Value” means, as of any date, the value of the Common Stock as determined below. If the Common Stock is listed
on any established stock exchange or a national market system, including without limitation, the New York Stock Exchange or the Nasdaq
Stock Market, the Fair Market Value shall be the closing price of a share of Common Stock (or if no sales were reported the closing price
on the date immediately preceding such date) as quoted on such exchange or system on the day of determination, as reported in the Wall
Street Journal. In the absence of an established market for the Common Stock, the Fair Market Value shall be determined in good faith
by the Committee and such determination shall be conclusive and binding on all persons.
(q)
“Good Reason” means, unless the applicable Award Agreement states otherwise:
(i)
If an Employee or Consultant is a party to an employment or service agreement with the Company or its Affiliates and such agreement provides
for a definition of Good Reason, the definition contained therein; or
(ii)
If no such agreement exists or if such agreement does not define Good Reason, the occurrence of one or more of the following without
the Participant’s express written consent, which circumstances are not remedied by the Company within thirty (30) days of its receipt
of a written notice from the Participant describing the applicable circumstances (which notice must be provided by the Participant within
ninety (90) days of the Participant’s knowledge of the applicable circumstances): (A) any material, adverse change in the Participant’s
duties, responsibilities, authority, title, status or reporting structure; (B) a material reduction in the Participant’s base salary
or bonus opportunity; or (C) a geographical relocation of the Participant’s principal office location by more than fifty (50) miles.
(r)
“Issued Shares” means, collectively, all outstanding Shares issued pursuant to an Award and all Option Shares.
(s)
“Option” means the right to purchase Shares at a stated price upon and during a specified time. “Options” may
either be “incentive stock options” which meet the requirements of Code Section 422, or “nonqualified stock options”
which do not meet the requirements of Code Section 422.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 4 |
(t)
“Option Shares” mean outstanding Shares that were issued to a Participant upon the exercise of an Option.
(u)
“Participant” means an officer or other Employee, Director or Consultant of the Company or its Affiliates, or an individual
that the Company or an Affiliate has engaged to become an officer or Employee, or a Consultant who provides services to the Company or
its Affiliates, including a non-employee Director of the Board, whom the Committee designates to receive an Award.
(v)
“Performance Share Award” means the right to receive actual shares of Common Stock or share units to the extent the Company,
Subsidiary, Affiliate or other business unit and/or Participant achieves certain goals that the Committee establishes over a period of
time the Committee designates.
(w)
“Plan” means this Barfresh Food Group Inc. 2023 Equity Incentive Plan, as amended from time to time.
(x)
“Restricted Stock” means Shares that are subject to a risk of forfeiture and/or restrictions on transfer (including but not
limited to stock grants with the recipient having the right to make an election under Section 83(b) of the Code), which may lapse upon
the achievement or partial achievement of performance goals during a specified period and/or upon the completion of a period of service
or upon the occurrence of other events, as determined by the Committee.
(y)
“Restricted Stock Unit” means the right to receive a Share, or a cash payment, the amount of which is equal to the Fair Market
Value of a Share, which is subject to a risk of forfeiture which may lapse upon the achievement or partial achievement of performance
goals during a specified period and/or upon the completion of a period of service or upon the occurrence of other events, as determined
by the Committee.
(z)
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.
(aa)
“Share” means a share of Common Stock.
(bb)
“Stock Appreciation Right” or “SAR” means the right of a Participant to receive cash, and/or Shares with a Fair
Market Value, equal to the excess of the Fair Market Value of a Share over the grant price.
(cc)
“Subsidiary” means any corporation in an unbroken chain of corporations beginning with the Company if each of the corporations
(other than the last corporation in the chain) owns stock possessing more than fifty percent (50%) of the total combined voting power
of all classes of stock in one of the other corporations in the chain.
(dd)
“10% Owner-Employee” means an employee who, at the time an incentive stock option is granted, owns (directly or indirectly,
within the meaning of Code Section 424(d)) more than ten percent (10%) of the total combined voting power of all classes of stock of
the Company or of any Subsidiary.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 5 |
4.
ADMINISTRATION.
(a)
Committee Administration. The Committee has full authority to administer this Plan, including the authority to (i) interpret the
provisions of this Plan, (ii) prescribe, amend and rescind rules and regulations relating to this Plan, (iii) correct any defect, supply
any omission, or reconcile any inconsistency in any Award or agreement covering an Award in the manner and to the extent it deems desirable
to carry this Plan into effect, and (iv) make all other determinations necessary or advisable for the administration of this Plan. All
actions or determinations of the Committee are made in its sole discretion and will be final and binding on any person with an interest
therein. If at any time the Committee is not in existence, the Board shall administer the Plan and references to the Committee in the
Plan shall mean the Board.
(b)
Delegation to Committees or Officers. To the extent applicable law permits, the Board may delegate to another committee of the
Board or to one or more officers of the Company, or the Committee may delegate to a sub-committee, any or all of the authority and responsibility
of the Committee. If the Board or Committee has made such a delegation, then all references to the Committee in this Plan include such
committee, sub-committee or one or more officers to the extent of such delegation.
(c)
No Liability. No member of the Committee, and no individual or officer to whom a delegation under subsection (b) has been made,
will be liable for any act done, or determination made, by the individual in good faith with respect to the Plan or any Award. The Company
will indemnify and hold harmless such individual to the maximum extent that the law and the Company’s bylaws permit.
(d)
Non-Uniform Treatment. The Committee’s determinations under the Plan need not be uniform and may be made by it selectively
among persons who are eligible to receive, or actually receive, Awards. Without limiting the generality of the foregoing, the Committee
shall be entitled to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform and selective
Award Agreements.
(e)
Acceleration of Exercisability and Vesting. The Committee shall have the power to accelerate the time at which an Award may first
be exercised or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions
in the Award stating the time at which it may first be exercised or the time during which it will vest.
5.
DISCRETIONARY GRANTS OF AWARDS. Subject to the terms of this Plan and applicable law, the Committee has full power and authority
to: (a) designate from time to time the Participants to receive Awards under this Plan; (b) determine the type or types of Awards to
be granted to each Participant; (c) determine the number of Shares with respect to which an Award relates; and (d) determine any terms
and conditions of any Award including but not limited to permitting the delivery to the Company of Shares or the relinquishment of an
appropriate number of vested Shares under an exercisable Option in satisfaction of part of all of the exercise price of, or withholding
taxes with respect to, an Award or payment through a “net exercise” procedure established by the Company such that, without
the payment of any funds, the Participant may exercise the Option and receive the net number of Shares. Method of payment, in the case
of an incentive stock option, shall be determined at the time of grant. Awards may be granted either alone or in addition to, in tandem
with, or in substitution for any other Award (or any other award granted under another plan of the Company or any Affiliate). The Committee’s
designation of a Participant in any year will not require the Committee to designate such person to receive an Award in any other year.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 6 |
6.
SHARES RESERVED UNDER THIS PLAN.
(a)
Plan Reserve. An aggregate of six hundred fifty thousand (650,000) Shares are reserved for issuance under this Plan, all of which
may be issued as any form of Award.
(b)
Replenishment of Shares Under this Plan. If an Award lapses, expires, terminates or is cancelled without the issuance of Shares
or payment of cash under the Award, then the Shares subject to or reserved for in respect of such Award, or the Shares to which such
Award relates, may again be used for new Awards as determined under subsection (a), including issuance pursuant to incentive stock options.
If Shares are issued under any Award and the Company subsequently reacquires them pursuant to rights reserved upon the issuance of the
Shares, then such Shares may be used for new Awards under this Plan as determined under subsection (a), but excluding issuance pursuant
to incentive stock options. Notwithstanding anything to the contrary contained herein: Shares subject to an Award under the Plan shall
not again be made available for issuance or delivery under the Plan if such Shares are (i) Shares tendered in payment of an Option, (ii)
Shares delivered or withheld by the Company to satisfy any tax withholding obligation, or (iii) Shares covered by a stock-settled Stock
Appreciation Right or other Awards that were not issued upon the settlement of the Award.
7.
OPTIONS.
(a)
Determinations by Committee. Subject to the terms of this Plan, the Committee will determine all terms and conditions of each
Option, including but not limited to:
(i)
Whether the Option is an incentive stock option or a nonqualified stock option; provided that in the case of an incentive stock option,
if the aggregate Fair Market Value (determined at the time of grant) of the Shares with respect to which such option and all other incentive
stock options issued under this Plan (and under all other incentive stock option plans of the Company or any Affiliate that is required
to be included under Code Section 422) are first exercisable by the Participant during any calendar year exceeds $100,000, such Option
automatically shall be treated as a nonqualified stock option to the extent this limit is exceeded. Only employees of the Company or
a Subsidiary are eligible to be granted incentive stock options;
(ii)
The number of Shares subject to the Option;
(iii)
The exercise price per Share, which may not be less than the Fair Market Value of a Share as determined on the date of grant; provided
that an incentive stock option granted to a 10% Owner-Employee must have an exercise price that is at least one hundred ten percent (110%)
of the Fair Market Value of a Share on the date of grant;
(iv)
The terms and conditions of exercise; and
(v)
The termination date, except that each Option must terminate no later than the tenth (10th) anniversary of the date of grant and each
incentive stock option granted to any 10% Owner-Employee must terminate no later than the fifth (5th) anniversary of the date of grant.
In
all other respects, the terms of any incentive stock option should comply with the provisions of Code Section 422 except to the extent
the Committee determines otherwise.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 7 |
(b)
Termination of Continuous Service. Unless otherwise provided in an Award Agreement or in an employment agreement the terms of
which have been approved by the Committee, in the event an Option holder’s Continuous Service terminates (other than upon the Option
holder’s death or Disability), the Option holder may exercise his/her Option (to the extent that the Option holder was entitled
to exercise such Option as of the date of termination) but only within such period of time ending on the earlier of (i) the date three
months following the termination of the Option holder’s Continuous Service or (ii) the expiration of the term of the Option as
set forth in the Award Agreement; provided that, if the termination of Continuous Service is by the Company for Cause, all outstanding
Options (whether or not vested) shall immediately terminate and cease to be exercisable. If, after termination, the Option holder does
not exercise his/her Option within the time specified in the Award Agreement, the Option shall terminate.
(c)
Disability of Option Holder. Unless otherwise provided in an Award Agreement, in the event that an Option holder’s Continuous
Service terminates as a result of the Option holder’s Disability, the Option holder may exercise his/her Option (to the extent
that the Option holder was entitled to exercise such Option as of the date of termination), but only within such period of time ending
on the earlier of (i) the date 12 months following such termination or (ii) the expiration of the term of the Option as set forth in
the Award Agreement. If, after termination, the Option holder does not exercise his/her Option within the time specified herein or in
the Award Agreement, the Option shall terminate.
(d)
Death of Option Holder. Unless otherwise provided in an Award Agreement, in the event an Option holder’s Continuous Service
terminates as a result of the Option holder’s death, then the Option may be exercised (to the extent the Option holder was entitled
to exercise such Option as of the date of death) by the Option holder’s estate, by a person who acquired the right to exercise
the Option by bequest or inheritance or by a person designated to exercise the Option upon the Option holder’s death, but only
within the period ending on the earlier of (i) the date 12 months following the date of death or (ii) the expiration of the term of such
Option as set forth in the Award Agreement. If, after the Option holder’s death, the Option is not exercised within the time specified
herein or in the Award Agreement, the Option shall terminate.
8.
STOCK APPRECIATION RIGHTS. Subject to the terms of this Plan, the Committee will determine all terms and conditions of each
SAR, including but not limited to:
(a)
The number of Shares to which the SAR relates;
(b)
The grant price, provided that the grant price shall not be less than the Fair Market Value of the Shares subject to the SAR as determined
on the date of grant;
(c)
The terms and conditions of exercise or maturity;
(d)
The term, provided that an SAR must terminate no later than the tenth (10th) anniversary of the date of grant; and
(e)
Whether the SAR will be settled in cash, Shares or a combination thereof.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 8 |
9.
PERFORMANCE SHARE AWARDS. Subject to the terms of this Plan, the Committee will determine all terms and conditions of each
Performance Share Award, including but not limited to:
(a)
The number of Shares or stock-denominated units to which the Performance Share Award relates;
(b)
The terms and conditions of each Award, including, without limitation, the selection of the performance goals that must be achieved for
the Participant to realize all or a portion of the benefit provided under the Award; and
(c)
Whether all or a portion of the Shares subject to the Award will be issued to the Participant, without regard to whether the performance
goals have been attained, in the event of the Participant’s death, Disability, retirement or other circumstance.
10.
RESTRICTED STOCK AND RESTRICTED STOCK UNIT AWARDS. Subject to the terms of this Plan, the Committee will determine all terms
and conditions of each award of Restricted Stock or Restricted Stock Units, including but not limited to:
(a)
The number of Shares or Restricted Stock Units to which such Award relates;
(b)
The period of time over which, and/or the criteria or conditions that must be satisfied so that, the risk of forfeiture and/or restrictions
on transfer imposed on the Restricted Stock or Restricted Stock Units will lapse;
(c)
Whether all or a portion of the Restricted Shares or Restricted Stock Units will be released from a right of repurchase and/or be paid
to the Participant in the event of the Participant’s death, Disability, retirement or other circumstance;
(d)
With respect to awards of Restricted Stock, the manner of registration of certificates for such Shares, and whether to hold such Shares
in escrow pending lapse of the risk of forfeiture, right of repurchase and/or restrictions on transfer or to issue such Shares with an
appropriate legend referring to such restrictions;
(e)
With respect to awards of Restricted Stock, whether dividends paid with respect to such Shares will be immediately paid or held in escrow
or otherwise deferred and whether such dividends shall be subject to the same terms and conditions as the Award to which they relate;
and
(f)
With respect to awards of Restricted Stock Units, whether to credit dividend equivalent units equal to the amount of dividends paid on
a Share and whether such dividend equivalent units shall be subject to the same terms and conditions as the Award to which they relate.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 9 |
11.
TRANSFERABILITY. Except as set forth in Section 15 hereof, each award granted under this plan is not transferable other than
by will or the laws of descent and distribution, or to a revocable trust, or as permitted by Rule 701 of the Securities Act.
12.
TERMINATION AND AMENDMENT.
(a)
Term. Subject to the right of the Board or Committee to terminate the Plan earlier pursuant to Section 12(b), the Plan shall terminate
on, and no Awards may be granted after the tenth (10th) anniversary of the Plan’s effective date.
(b)
Termination and Amendment. The Board or Committee may amend, alter, suspend, discontinue or terminate this Plan at any time, provided
that:
(i)
the Board must approve any amendment of this Plan to the extent the Company determines such approval is required by: (a) action of the
Board, (b) applicable corporate law, or (c) any other applicable law or rule of a self-regulatory organization;
(ii)
stockholders must approve any of the following Plan amendments: (a) an amendment to materially increase any number of Shares specified
in Section 6(a) (except as permitted by Section 14(a)) or expand the class of individuals eligible to receive an Award to the extent
required by the Code, the Company’s bylaws or any other applicable law, (b) any other amendment if required by applicable law or
the rules of any self-regulatory organization, or (c) an amendment that would diminish the protections afforded by Section 12(e); provided,
that such stockholder approval may be obtained within 12 months of the approval of such amendment by the Board or Committee.
(c)
Amendment, Modification or Cancellation of Awards. Except as provided in subsection (e) and subject to the restrictions of this
Plan, the Committee may modify or amend an Award or waive any restrictions or conditions applicable to an Award (including relating to
the exercise, vesting or payment thereof), and the Committee may modify the terms and conditions applicable to any Award (including the
terms of the Plan), and the Committee may cancel any Award, provided that the Participant (or any other person as may then have an interest
in such Award as a result of the Participant’s death or the transfer of an Award) must consent in writing if any such action would
adversely affect the rights of the Participant (or other interested party) under such Award. Notwithstanding the foregoing, the Committee
need not obtain Participant (or other interested party) consent for the amendment, modification or cancellation of an Award pursuant
to the provisions of Section 14(a), or the amendment or modification of an Award to the extent deemed necessary to comply with any applicable
law, the listing requirements of any principal securities exchange or market on which the Shares are then traded, or to preserve favorable
accounting treatment of any Award for the Company.
(d)
Survival of Committee Authority and Awards. Notwithstanding the foregoing, the authority of the Committee to administer this Plan
and modify or amend an Award, and the authority of the Board or Committee to amend this Plan, shall extend beyond the date of this Plan’s
termination. In addition, termination of this Plan will not affect the rights of Participants with respect to Awards previously granted
to them, and all unexpired Awards will continue in full force and effect after termination of this Plan except as they may lapse or be
terminated by their own terms and conditions.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 10 |
(e)
Repricing Prohibited. Notwithstanding anything in this Plan to the contrary, neither the Committee nor any other person may decrease
the exercise price of any Option or the grant price of any SAR nor take any action that would result in a deemed decrease of the exercise
price or grant price of an Option or SAR under Code Section 409A, after the date of grant, except in accordance with Section 1.409A-1(b)(5)(v)(D)
of the Treasury Regulations (26 C.F.R.), or in connection with a transaction which is considered the grant of a new Option or SAR for
purposes of Section 409A of the Code, provided that the new exercise price or grant price is not less than the Fair Market Value of a
Share on the new grant date.
(f)
Foreign Participation. To assure the viability of Awards granted to Participants employed or residing in foreign countries, the
Committee may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax
policy or custom. Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions of this
Plan as it determines is necessary or appropriate for such purposes. Any such amendment, restatement or alternative versions that the
Committee approves for purposes of using this Plan in a foreign country will not affect the terms of this Plan for any other country.
13.
TAXES.
(a)
Withholding. In the event the Company or any Affiliate is required to withhold any foreign, Federal, state or local taxes or other
amounts in respect of any income recognized by a Participant as a result of the grant, vesting, payment or settlement of an Award or
disposition of any Shares acquired under an Award, the Company may deduct (or require an Affiliate to deduct) from any payments of any
kind otherwise due the Participant cash, or with the consent of the Committee, Shares otherwise deliverable or vesting under an Award,
to satisfy such tax obligations. Alternatively, the Company may require such Participant to pay to the Company, in cash, promptly on
demand, or make other arrangements satisfactory to the Company regarding the payment to the Company of the aggregate amount of any such
taxes and other amounts required to be withheld. If Shares are deliverable upon exercise or payment of an Award, the Committee may permit
a Participant to satisfy all or a portion of the foreign, Federal, state and local withholding tax obligations arising in connection
with such Award by electing to (a) have the Company withhold Shares otherwise issuable under the Award, (b) tender back Shares received
in connection with such Award, or (c) deliver other previously owned Shares. If an election is provided, the election must be made on
or before the date as of which the amount of tax to be withheld is determined and otherwise as the Company requires. In any case, the
Company may defer making payment or delivery under any Award if any such tax may be pending unless and until indemnified to its satisfaction.
(b)
No Guarantee of Tax Treatment. Notwithstanding any provisions of the Plan, the Company does not guarantee to any Participant or
any other person with an interest in an Award that any Award intended to be exempt from Code Section 409A shall be so exempt, nor that
any Award intended to comply with Code Section 409A shall so comply, nor that any Award designated as an incentive stock option within
the meaning of Code Section 422 qualifies as such, and neither the Company nor any Affiliate shall indemnify, defend or hold harmless
any individual with respect to the tax consequences of any such failure.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 11 |
14.
ADJUSTMENT PROVISIONS; CHANGE OF CONTROL.
(a)
Adjustment Upon Changes in Shares. In the event of changes in the outstanding Common Stock or in the capital structure of the
Company by reason of any stock or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate transaction
such as any recapitalization, reorganization, merger, consolidation, combination, exchange, or other relevant change in capitalization
occurring after the grant date of any Award, Awards granted under the Plan and any Award Agreements, the exercise price of Option and
Stock Appreciation Rights, the performance goals to which Performance Share Awards are subject, the maximum number of shares of Common
Stock subject to all Awards stated in Section 6 will be equitably adjusted or substituted, as to the number, price or kind of a share
of Common Stock or other consideration subject to such Awards to the extent necessary to preserve the economic intent of such Award.
In the case of adjustments made pursuant to this Section 14(a), unless the Committee specifically determines that such adjustment is
in the best interests of the Company or its Affiliates, the Committee shall, in the case of incentive stock options, ensure that any
adjustments under this Section 14(a) will not constitute a modification, extension or renewal of the incentive stock options within the
meaning of Section 424(h)(3) of the Code and in the case of non-qualified stock options, ensure that any adjustments under this Section
14(a) will not constitute a modification of such non-qualified stock options within the meaning of Section 409A of the Code. Any adjustments
made under this Section 14(a) shall be made in a manner which does not adversely affect the exemption provided pursuant to Rule 16b-3
under the Exchange Act. The Company shall give each Participant notice of an adjustment hereunder and, upon notice, such adjustment shall
be conclusive and binding for all purposes.
(b)
Change in Control where Awards not Assumed, Continued or Substituted. Upon the occurrence of a Change in Control, and except with
respect to any Awards assumed by the surviving entity, continued by the continuing entity or otherwise equitably converted or substituted
in connection with the Change in Control in a manner approved by the Committee or the Board: (i) outstanding Options, SARs, and other
Awards in the nature of rights that may be exercised shall become fully exercisable, (ii) time-based vesting restrictions on outstanding
Awards shall lapse, and (iii) the target payout opportunities attainable under all outstanding Performance Share Award shall be deemed
to have been fully earned as of the date of the Change in Control based upon an assumed achievement of all relevant performance goals
at the “target” level as provided in the applicable Award Agreement and, subject to compliance with Code Section 409A, there
shall be a pro rata payout to Participants within thirty (30) days following the date of the Change in Control based upon the length
of time within the performance period that has elapsed prior to the date of the Change in Control. Any Awards shall thereafter continue
or lapse in accordance with the other provisions of the Plan and the Award Agreement. To the extent that this provision causes incentive
stock options to exceed the dollar limitation set forth in Code Section 422, the excess Options shall be non-qualified stock options.
(c)
Change in Control where Awards Assumed, Continued or Substituted. With respect to Awards assumed by the surviving entity, continued
by the continuing entity or otherwise equitably converted or substituted in connection with a Change in Control: if within two (2) years
after the effective date of the Change in Control, a Participant’s employment is terminated without Cause or the Participant resigns
for Good Reason, then (i) all of that Participant’s outstanding Options, SARs and other Awards in the nature of rights that may
be exercised shall become fully exercisable, (ii) all time-based vesting restrictions on his/her outstanding Awards shall lapse, and
(iii) the payout opportunities attainable under all of such Participant’s outstanding Performance Share Awards shall be earned
based on actual performance through the end of the performance period, and there shall be a pro rata payout to the Participant within
thirty (30) days after the amount earned has been determined based upon the length of time within the performance period that has elapsed
prior to the date of termination. To the extent that this provision cause incentive stock options to exceed the dollar limitation set
forth in Code Section 422, the excess Options shall be non-qualified stock options.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 12 |
(d)
Termination, Amendment and Modification of Change in Control Provisions. Notwithstanding any other provision of this Plan or any
Award Agreement provision to the contrary, the provisions of this Section 14 may not be terminated, amended, or modified on or after
the date of a Change in Control to affect adversely any Award granted under the Plan prior to the Change in Control without the prior
written consent of the Participant to whom the Award was made; except that no action shall be permitted under this Section 14 that would
impermissibly accelerate or postpone payment of an Award subject to Code Section 409A.
(e)
Parachute Payment Limitation.
(i)
Except as may be set forth in a written agreement by and between the Company and the holder of an Award, in the event that the Company’s
auditors determine that any payment or transfer by the Company under the Plan to or for the benefit of a Participant (a “Payment”)
would be nondeductible by the Company for federal income tax purposes because of the provisions concerning “excess parachute payments”
in Code Section 280G, then the aggregate present value of all Payments shall be reduced (but not below zero) to the Reduced Amount (defined
herein). For purposes of this Section 14(d), the “Reduced Amount” shall be the amount, expressed as a present value, which
maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by the Company because of Code
Section 280G.
(ii)
If the Company’s auditors determine that any Payment would be nondeductible by the Company because of Code Section 280G, then the
Company shall promptly give the Participant notice to that effect and a copy of the detailed calculation thereof and of the Reduced Amount,
and the Participant may then elect, in his or her sole discretion, which and how much of the Payments shall be eliminated or reduced
(as long as after such election the aggregate present value of the Payments equals the Reduced Amount) and shall advise the Company in
writing of his or her election within ten (10) days of receipt of notice. If no such election is made by the Participant within such
ten (10) day period, then the Company may elect which and how much of the Payments shall be eliminated or reduced (as long as after such
election the aggregate present value of the Payments equals the Reduced Amount) and shall notify the Participant promptly of such election.
For purposes of this Section 14(d), present value shall be determined in accordance with Code Section 280G(d)(4). All determinations
made by the Company’s auditors under this Section 14(d) shall be binding upon the Company and the Participant and shall be made
within sixty (60) days of the date when a Payment becomes payable or transferable. As promptly as practicable following such determination
and the elections hereunder, the Company shall pay or transfer to or for the benefit of the Participant such amounts as are then due
to him or her under the Plan and shall promptly pay or transfer to or for the benefit of the Participant in the future such amounts as
become due to him or her under the Plan.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 13 |
(iii)
Except to the extent such payment was made in connection with a Change of Control, as a result of uncertainty in the application of Code
Section 280G at the time of an initial determination by the Company’s auditors hereunder, it is possible that Payments will have
been made by the Company that should not have been made (an “Overpayment”) or that additional Payments that will not have
been made by the Company could have been made (an “Underpayment”), consistent in each case with the calculation of the Reduced
Amount hereunder. In the event that the Company’s auditors, based upon the assertion of a deficiency by the Internal Revenue Service
against the Company or the Participant that the auditors believe has a high probability of success, determine that an Overpayment has
been made, such Overpayment shall be treated for all purposes as a loan to the Participant which he or she shall repay to the Company,
together with interest at the applicable federal rate provided in Code Section 7872(f)(2); provided, however, that no amount shall be
payable by the Participant to the Company if and to the extent that such payment would not reduce the amount subject to taxation under
Code Section 4999. In the event that the auditors determine that an Underpayment has occurred, such Underpayment shall promptly be paid
or transferred by the Company to or for the benefit of the Participant, together with interest at the applicable federal rate provided
in Code Section 7872(f)(2).
(iv)
For purposes of this Section 14(d), the term “Company” shall include affiliated corporations to the extent determined by
the auditors in accordance with Code Section 280G(d)(5).
15.
STOCK TRANSFER RESTRICTIONS.
(a)
Restrictions on Transfer. Except for designations of Beneficiaries by Participants or as otherwise provided otherwise in an Award
Agreement, Awards and Shares that have not been issued or as to which any applicable restriction, performance or deferral period has
not lapsed, may not be sold, assigned, transferred, pledged, alienated, attached, or otherwise encumbered (and any such purported sale,
assignment, transfer, pledge, alienation, attachment or other encumbrance shall be void and unenforceable against the Company or any
Affiliate), other than by will or the laws of descent and distribution, and such Award may be exercised during the life of the Participant
only by the Participant or the Participant’s legal guardian or legal representative; provided, however, that the Committee may
(but shall not be required to) permit other transfers (other than transfers for value) where the Committee concludes that such transferability
is otherwise appropriate and desirable, taking into account any factors deemed relevant by the Committee, including without limitation,
state or federal tax or securities laws applicable to transferable Awards. In addition to the foregoing, a Participant is prohibited
from transferring Options to a third party financial institution without approval of the Company’s stockholders.
(b)
Adjustments for Changes in Capital Structure. If, as a result of any reorganization, recapitalization, reclassification, stock
dividend, stock split, reverse stock split or other similar change in the outstanding Shares of the Company, the outstanding Shares are
increased or decreased or are exchanged for a different number or kind of shares of the Company’s stock, the restrictions contained
in this Section 15 shall apply with equal force to additional and/or substitute securities, if any, received by Participant in exchange
for, or by virtue of his or her ownership of, Issued Shares.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 14 |
16.
MISCELLANEOUS.
(a)
Other Terms and Conditions. The grant of any Award under this Plan may also be subject to other provisions (whether or not applicable
to the Award awarded to any other Participant) as the Committee determines appropriate, subject to any limitations imposed in the Plan.
(b)
Code Section 409A. The Plan is intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly,
to the maximum extent permitted, the Plan shall be interpreted and administered to be in compliance therewith. Any payments described
in the Plan that are due within the “short-term deferral period” as defined in Section 409A of the Code shall not be treated
as deferred compensation unless applicable laws require otherwise. Notwithstanding anything to the contrary in the Plan, to the extent
required to avoid accelerated taxation and tax penalties under Section 409A of the Code, amounts that would otherwise be payable and
benefits that would otherwise be provided pursuant to the Plan during the six (6) month period immediately following the Participant’s
termination of Continuous Service shall instead be paid on the first payroll date after the six-month anniversary of the Participant’s
separation from service (or the Participant’s death, if earlier). Notwithstanding the foregoing, neither the Company nor the Committee
shall have any obligation to take any action to prevent the assessment of any additional tax or penalty on any Participant under Section
409A of the Code and neither the Company nor the Committee will have any liability to any Participant for such tax or penalty.
(c)
Employment or Service. The issuance of an Award shall not confer upon a Participant any right with respect to continued employment
or service with the Company or any Affiliate, or the right to continue as a consultant or director. Unless determined otherwise by the
Committee, for purposes of the Plan and all Awards, the following rules shall apply:
(i)
a Participant who transfers employment between the Company and any Affiliate, or between Affiliates, will not be considered to have terminated
employment;
(ii)
a Participant who ceases to be a consultant, advisor or non-employee director because he or she becomes an employee of the Company or
an Affiliate shall not be considered to have ceased service with respect to any Award until such Participant’s termination of employment
with the Company and its Affiliates;
(iii)
a Participant who ceases to be employed by the Company or an Affiliate of the Company and immediately thereafter becomes a non-employee
director of the Company or any Affiliate, or a consultant to the Company or any Affiliate, shall not be considered to have terminated
employment until such Participant’s service as a director of, or consultant to, the Company and its Affiliates has ceased; and
(iv)
a Participant employed by an Affiliate will be considered to have terminated employment when such entity ceases to be an Affiliate of
the Company.
Notwithstanding
the foregoing, with respect to an Award subject to Code Section 409A, a Participant shall be considered to have terminated employment
(where termination of employment triggers payment of the Award) upon the date of his separation from service within the meaning of Code
Section 409A.
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 15 |
(d)
Section 16. It is the intent of the Company that the Plan satisfy, and be interpreted in a manner that satisfies, the applicable
requirements of Rule 16b-3 as promulgated under Section 16 of the Exchange Act so that Participants will be entitled to the benefit of
Rule 16b-3, or any other rule promulgated under the Exchange Act, and will not be subject to short-swing profit liability under Section
16 of the Exchange Act. Accordingly, if the operation of any provision of the Plan would conflict with the intent expressed in this Section
16(d), such provision to the extent possible shall be interpreted and/or deemed amended so as to avoid such conflict.
(e)
No Fractional Shares. No fractional Shares or other securities may be issued or delivered pursuant to this Plan, and the Committee
may determine whether cash, other securities or other property will be paid or transferred in lieu of any fractional Shares or other
securities, or whether such fractional Shares or other securities or any rights to fractional Shares or other securities will be canceled,
terminated or otherwise eliminated.
(f)
Unfunded Plan. This Plan is unfunded and does not create, and should not be construed to create, a trust or separate fund with
respect to this Plan’s benefits. This Plan does not establish any fiduciary relationship between the Company and any Participant.
To the extent any person holds any rights by virtue of an Award granted under this Plan, such rights are no greater than the rights of
the Company’s general unsecured creditors.
(g)
Requirements of Law. The granting of Awards under this Plan and the issuance of Shares in connection with an Award are subject
to all applicable laws, rules and regulations and to such approvals by any governmental agencies or national securities exchanges as
may be required. Notwithstanding any other provision of this Plan or any award agreement, the Company has no liability to deliver any
Shares under this Plan or make any payment unless such delivery or payment would comply with all applicable laws and the applicable requirements
of any securities exchange or similar entity. In such event, the Company may substitute cash for any Share(s) otherwise deliverable hereunder
without the consent of the Participant or any other person.
(h)
Governing Law. This Plan, and all agreements under this Plan, shall be construed in accordance with and governed by the laws of
the State of Delaware, without reference to any conflict of law principles. Any legal action or proceeding with respect to this Plan,
any Award or any award agreement, or for recognition and enforcement of any judgment in respect of this Plan, any Award or any award
agreement, may only be brought and determined in a court sitting in the State of California, County of Los Angeles.
(i)
Limitations on Actions. Any legal action or proceeding with respect to this Plan, any Award or any Award agreement, must be brought
within one year (365 days) after the day the complaining party first knew or should have known of the events giving rise to the complaint.
(j)
Construction. Whenever any words are used herein in the masculine, they shall be construed as though they were used in the feminine
in all cases where they would so apply; and wherever any words are used in the singular or plural, they shall be construed as though
they were used in the plural or singular, as the case may be, in all cases where they would so apply. Titles of sections are for general
information only, and the Plan is not to be construed with reference to such titles.
(k)
Severability. If any provision of this Plan or any award agreement or any Award (i) is or becomes or is deemed to be invalid,
illegal or unenforceable in any jurisdiction, or as to any person or Award, or (ii) would disqualify this Plan, any award agreement or
any Award, then such provision should be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or
deemed amended without, in the determination of the Committee, materially altering the intent of this Plan, award agreement or Award,
then such provision should be stricken as to such jurisdiction, person or Award, and the remainder of this Plan, such award agreement
and such Award will remain in full force and effect.
[End
of Document]
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 16 |
C
E R T I F I C A T I O N
On
behalf of the Company, the undersigned hereby certifies that this Barfresh Food Group Inc. 2023 Equity Incentive Plan has been approved
by the Board of Directors of the Company on March 15, 2023 and by the stockholders of the Company on June 13, 2023.
| |
BARFRESH
FOOD GROUP INC. |
| |
|
|
| |
By: |
/s/
Riccardo Delle Coste |
| |
Name: |
Riccardo
Delle Coste |
| |
Title: |
Chief
Executive Officer |
| Barfresh Food Group Inc. 2023 Equity Incentive Plan – page 17 |
Exhibit
4.6
Barfresh
Food Group, Inc.
Incentive
Stock Option Agreement
Granted
Under 2023 Equity Incentive Plan
This
agreement (the “Agreement”) evidences the grant by Barfresh Food Group, Inc., a Delaware corporation (the “Company”),
on _____________ (the “Grant Date”) to _______________, an ________ of the Company (the “Participant”),
of an option (the “Option”) to purchase, in whole or in part, on the terms provided herein and in the Company’s
2023 Equity Incentive Plan (the “Plan”), a total of ________ shares (the “Shares”)
of common stock of the Company (“Common Stock”) at $______ per Share. Unless earlier terminated, this
option shall expire at 5:00 p.m., Eastern Time, on the 8th anniversary of the Grant Date (the “Final Exercise
Date”).
It
is intended that the Option evidenced by this Agreement shall be an incentive stock option as defined in Section 422 of the Internal
Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”). However, to the
extent that the aggregate fair market value of stock with respect to which incentive stock options, including the Option, are exercisable
for the first time by the Participant during any calendar year, exceeds $100,000, such options shall be treated as not qualifying under
Code Section 422, but rather shall be treated as non-qualified stock options to the extent required by Code Section 422. Further,
if for any reason this Option (or portion thereof) will not qualify as an incentive stock option, then, to the extent of such non-qualification,
such Option (or portion thereof) shall be regarded as a non-qualified stock option granted under the Plan. In no event will the Company
or any of its employees or directors have any liability to Participant (or any other person) due to the failure of the Option to qualify
for any reason as an incentive stock option. Except as otherwise indicated by the context, the term “Participant”,
as used in this Agreement, shall be deemed to include any person who acquires the right to exercise this option validly under its terms.
If
any term(s) of this Agreement contradicts any term(s) set forth in an effective employment agreement between the Company or one of its
wholly owned subsidiaries and Participant, the term(s) of the employment agreement shall control.
In
order to obtain the tax treatment provided for incentive stock options by Section 422 of the Code, the Shares received upon exercising
any incentive stock options received pursuant to this Agreement must be sold, if at all, after a date which is the later of two (2) years
from the date of this Agreement or one (1) year from the date upon which the Option is exercised. The Participant agrees to report sales
of Shares prior to the above determined date (a “Disqualifying Disposition”) to the Company within five (5)
business days after such sale is concluded. The Participant also agrees to pay to the Company, within ten (10) business days after such
sale is concluded, the amount necessary for the Company to satisfy its withholding requirement required by the Code in the manner specified
in Section 13 of the Plan. Nothing herein is intended as a representation that the Shares may be sold without registration under state
and federal securities laws or an exemption therefrom or that such registration or exemption will be available at any specified time.
The Participant understands and agrees that in the event Participant ceases to be an employee of the Company, but remains a service provider,
that Participant shall be solely responsible for the taxes due upon exercise of the Option and that the Company is not required to withhold
any amounts upon exercise of this Option by Participant in order to satisfy Participant’s obligations under the Code.
_______
(___) of the Options will vest on ____________, and the remaining _____ (___) of the Options shall vest on the three-year anniversary
of your Grant Date.
The
right of exercise shall be cumulative so that to the extent the Option is not exercised in any period to the maximum extent permissible
it shall continue to be exercisable, in whole or in part, with respect to all Shares for which it is vested until the earlier of the
Final Exercise Date or as provided in Section 3 hereof or in the Plan.
(a)
(i) Manner of Exercise. Each election to exercise the Option shall be in writing, in substantially the form of Notice of Election
to Exercise attached hereto as Exhibit A (the “Exercise Notice”), signed by the Participant, and received
by the Company at its principal office, accompanied by this Agreement, and payment in full in the manner provided herein. The Participant
may purchase less than the number of Shares covered hereby, provided that no partial exercise of the Option may be for any fractional
share.
(ii)
Manner of Payment. Payment of the exercise price may be made in cash, by certified or cashier’s check or on a cashless basis.
The Participant may exercise the Option, in whole or in part, on a cashless basis determined by the following formula:
X=Y*(A-B)
A
| |
Where |
X = the number of Shares to be issued to the Participant. |
Y
= the number of exercised Shares.
A
= the Fair Value (as defined below) of one Share (determined at the date of delivery of the Exercise Notice).
B
= the Exercise Price (as adjusted to the date of such calculation).
(iii)
For the purposes of Section 3(a)(ii), Fair Value per share of Common Stock shall mean the average Closing Price (as defined below) per
share of Common Stock on the five (5) trading days immediately preceding the date on which the Notice of Exercise is received by the
Company. Closing Price means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common
Stock is then listed or quoted on a national securities exchange, the closing price per share of the Common Stock for such date (or the
nearest preceding date) on the primary eligible market or exchange on which the Common Stock is then listed or quoted; or (b) if prices
for the Common Stock are then quoted on a securities market that is not a national securities exchange, the closing bid price per share
of the Common Stock for such date (or the nearest preceding date) so quoted. If the Common Stock is not publicly traded as set forth
above, the Fair Value per share of Common Stock shall be reasonably and in good faith determined by the Board of Directors of the Company
as of the date which the Notice of Exercise is received by the Company.
(b)
Continuous Relationship with the Company Required. Except as otherwise provided in this Section 3, the Option may not be exercised
unless the Participant, at the time he or she exercises the Option, is, and has been at all times since the Grant Date, an employee of
the Company or any parent or subsidiary of the Company as defined in Section 424(e) or (f) of the Code (an “Eligible Participant”).
(c)
Termination of Relationship with the Company. If the Participant ceases to be an Eligible Participant for any reason, then, except
as provided in paragraphs (d) through (g) below or pursuant to a separate employment agreement between the Company or one of its wholly
owned subsidiaries and Participant, the right to exercise the Option shall terminate upon such cessation (but in no event after the Final
Exercise Date); provided that the Option shall be exercisable only to the extent that the Participant was entitled to exercise
the Option on the date of such cessation.
Unless
otherwise provided by the Board of Directors of the Company or pursuant to a separate employment agreement between the Company or one
of its wholly owned subsidiaries and Participant, all of the Options that have not yet vested as of the date the Participant ceases to
be an Eligible Participant shall terminate immediately upon such cessation for any reason whatsoever, including, termination for cause,
termination without cause, disability and death.
(d)
Termination for Cause. Notwithstanding anything herein contained to the contrary, the Option shall terminate upon the date of
the first discovery by the Company of any reason for the termination of the Participant as an Eligible Participant for cause (as determined
in the sole discretion of the Board of Directors of the Company). If the Participant’s status as an Eligible Participant is suspended
pending any investigation by the Company as to whether the Participant should be terminated for cause, the Participant’s rights
under this Agreement and the Plan shall likewise be suspended during the period of any such investigation.
(e)
Exercise Period Upon Disability. If the Participant becomes disabled (within the meaning of Section 22(e)(3) of the Code) prior
to the Final Exercise Date while he or she is an Eligible Participant, the Option shall be exercisable, only to the extent that the Participant
was entitled to exercise the Option on the date of such disability, within the period of one year following the date of disability of
the Participant, by the Participant, provided that the Option shall not be exercisable after the Final Exercise Date.
(f)
Exercise Period Upon Death. If the Participant dies prior to the Final Exercise Date while he or she is an Eligible Participant,
the Option shall be exercisable, only to the extent that the Participant was entitled to exercise the Option on the date of death, within
the period of one year following the date of death of the Participant, by the person(s) to whom the Participant’s rights under
the Option shall pass by the Participant’s will or by the laws of descent and distribution, provided that the Option shall
not be exercisable after the Final Exercise Date.
(g)
Termination Without Cause. If the Participant is terminated without “cause”, the Option shall be exercisable, only
to the extent that the Participant was entitled to exercise the Option on the date of such termination, within the period of three months
following the date of termination of the Participant, by the Participant, provided that the Option shall not be exercisable after
the Final Exercise Date.
(a)
Withholding. No Shares will be issued pursuant to the exercise of the Option unless and until the Participant pays to the Company,
or makes provision satisfactory to the Company for payment of, any federal, state or local withholding taxes required by law to be withheld
in respect of the Option. Regardless of any action the Company or the Participant take with respect to any or all income tax (including
federal, state, local and foreign tax), social insurance, payroll tax, payment on account or other tax-related items related to the Participant’s
participation in the Plan and legally applicable to the Participant (“Tax-Related Items”), the Participant
acknowledges that the ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and may exceed
the amount actually withheld by the Company.
| 5. |
Transfer Restrictions. |
(a)
The Option may not be sold, assigned, transferred, pledged or otherwise encumbered by the Participant, either voluntarily or by operation
of law, except by will or the laws of descent and distribution, and, during the lifetime of the Participant, the Option shall be exercisable
only by the Participant.
(b)
The issuance and transfer of Shares shall be subject to compliance by the Company and the Participant with all applicable requirements
of federal, state, local or foreign securities laws and with all applicable requirements of any stock exchange or trading market on which
the Shares may be listed at the time of such issuance or transfer.
By
entering into this Agreement and accepting the grant of the Option evidenced hereby, the Participant acknowledges that: (i) the Plan
is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by
the Company at any time unless otherwise provided in the Plan and this Agreement; (ii) the grant of the Option is voluntary and occasional
and does not create any contractual or other right to receive future grants of options, or benefits in lieu of options; (iii) all decisions
with respect to future grants, if any, will be at the sole discretion of the Company; (iv) the Participant’s participation in the
Plan shall not create a right to further employment with the Company and shall not interfere with the ability of the Company to terminate
the Participant’s employment relationship at any time; (v) the Participant’s participation in the Plan is voluntary; (vi)
the future value of the underlying Shares is unknown and cannot be predicted with certainty, and if the Participant exercises the Option
and obtains Shares, the value of those Shares may increase or decrease in value, even below the exercise price; and (vii) if the underlying
Shares do not increase in value, the Option will have no value.
This
Agreement shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of the Code. The
Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify
this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take
any other actions, as the Company determines are necessary or appropriate to ensure that the Option qualifies for exemption from, or
complies with the requirements of, Code Section 409A; provided, however, that the Company makes no representation that the Option will
be exempt from, or will comply with, Section 409A of the Code, and makes no undertakings to preclude Section 409A of the Code from applying
to the Option or to ensure that it complies with Section 409A of the Code. For the avoidance of doubt, the Participant hereby acknowledges
and agrees that the Company will have no liability to the Participant or any other party if the grant, vesting, exercise, issuance of
shares or any other transaction under this Agreement is not exempt from, or compliant with, Code Section 409A, or for any action taken
by the Company with respect thereto.
The
Company reserves the right to impose other requirements on the Participant’s participation in the Plan, to the extent the Company
determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require
the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
By
accepting the Option, the Participant represents and agrees that none of the Shares of Common Stock purchased upon exercise of the Option
will be distributed in violation of applicable federal and state laws and regulations. In addition, the Company may require, as a condition
of exercising the Option, that the Participant execute an undertaking, in such a form as the Company shall reasonably specify, that the
Shares are being purchased only for investment and without any then-present intention to sell or distribute such shares.
| 10. |
Adjustments for Stock Splits, Stock Dividends, Etc. |
(a)
In the case of any recapitalization, reclassification, consolidation, stock split, stock dividend, subdivision or combination of shares
or like change in the nature of the Common Stock covered by this Agreement, the number of Options and exercise price shall be proportionately
adjusted.
(b)
The existence of the Options shall not affect in any way the right or power of the Company or its shareholders to make or authorize any
adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure or its business, or any merger
or consolidation of the Company, or any issue of bonds, debentures, preferred or preference stocks ahead of or affecting the shares issuable
upon exercise of the Options, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets
or business, or any other corporate act or proceeding, whether of a similar character or otherwise.
The
acceptance of the Option, exercise of the Option, and the sale of Common Stock issued following the exercise of Option may have consequences
under federal and state tax and securities laws which may vary depending upon the individual circumstances of the Participant. Accordingly,
the Participant acknowledges that he or she has been advised to consult his or her personal legal and tax advisor in connection with
this Agreement and his or her dealings with respect to the Options. Without limiting other matters to be considered with the assistance
of the Participant’s professional advisors, the Participant should consider: (a) whether upon the exercise of the Options, the
Participant will file an election with the Internal Revenue Service pursuant to Section 83(b) of the Code and the implications of alternative
minimum tax pursuant to the Code; (b) the merits and risks of an investment in the underlying Shares of Common Stock; and (c) any resale
restrictions that might apply under applicable securities laws.
| 12. |
Provisions of the Plan. |
The
terms of the Options are subject to the provisions of the Plan, as the same may from time to time be amended, and any inconsistencies
between this Agreement and the Plan, as the same may be from time to time amended, shall be governed by the provisions of the Plan, a
copy of which has been delivered to the Participant, and which is available for inspection at the principal offices of the Company.
(a)
Disputes. Any dispute or disagreement that may arise under or as a result of this Agreement, or any question as to the interpretation
of this Agreement, may be determined by the Company’s Board of Directors in its absolute and uncontrolled discretion, and any such
determination shall be final, binding, and conclusive on all affected persons.
(b)
Notices. Any notice that a party may be required or permitted to give to the other shall be in writing, and may be delivered personally,
by overnight courier or by certified or registered mail, postage prepaid, addressed to the parties at their current principal addresses,
or such other address as either party, by notice to the other, may designate in writing from time to time.
(c)
Law Governing. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without
reference to the principles thereof relating to the conflict of laws.
(d)
Agreement Binding. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties
hereto.
(e)
Further Action. The parties hereto shall execute and deliver all documents, provide all information and take or forbear from all
such action as may be necessary or appropriate to achieve the purposes of the Agreement.
(f)
Parties of Interest. Nothing herein shall be construed to be to the benefit of any third party, nor is it intended that any provision
shall be for the benefit of any third party.
(g)
Savings Clause. If any provision of this Agreement, or the application of such provision to any person or circumstance, shall
be held invalid, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as
to which it is held invalid, shall not be affected thereby.
[signature
page follows]
IN
WITNESS WHEREOF, the Company has caused this Incentive Stock Option Agreement to be executed under its corporate seal by its duly
authorized officer. This Agreement shall take effect as a sealed instrument.
| |
Barfresh Food Group, Inc. |
| |
|
|
| |
By: |
|
| |
Name: |
|
| |
Title: |
|
PARTICIPANT’S
ACCEPTANCE
The
undersigned hereby accepts the foregoing Option and agrees to the terms and conditions thereof. The undersigned hereby acknowledges receipt
of a copy of Barfresh Food Group, Inc.’s 2023 Equity Incentive Plan.
| |
PARTICIPANT: |
| |
|
|
| |
Name: |
|
| |
Address: |
|
EXHIBIT
A
Notice
of Election to Exercise
Barfresh
Food Group, Inc.
3600
Wilshire Boulevard, Suite 1720
Los
Angeles, CA 90010
This
Notice of Election to Exercise shall constitute proper notice pursuant to Barfresh Food Group, Inc.’s (the “Company”)
2023 Equity Incentive Plan (the “Plan”) and Section 3(a)(i) of that certain Incentive Stock Option Agreement
(the “Agreement”) dated as of __________, between the Company and the undersigned.
The
undersigned hereby elects to exercise Participant’s option to purchase [____________________] shares of common stock
of the Company at a price of US$[_______] per share, for aggregate consideration of US$[__________], on the
terms and conditions set forth in the Agreement and the Plan.
Payment
is to be made as follows:
| |
☐ |
Cash |
| |
☐ |
Bank or Certified Check |
| |
☐ |
Cashless Exercise Pursuant to Section 3(a)(ii) of this
Agreement |
The
Optionee hereby directs the Company to issue, register and deliver the certificates representing the shares as follows:
| Registration Information: |
|
Delivery Instructions: |
| |
|
|
| |
|
|
| (Name to appear on certificates) |
|
Name |
| Address: |
|
Address: |
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Telephone Number: |
|
DATED
at ______________________________, the _____ day of __________, 20_____.
| |
|
| |
|
| |
(Name of Optionee – Please type or print) |
| |
|
| |
|
| |
(Signature and, if applicable, Title) |
| |
|
| |
|
| |
(Address of Optionee) |
| |
|
| |
|
| |
(City, State and Zip Code of Optionee) |
Exhibit
4.7
Barfresh
Food Group, Inc.
Non-Qualified
Stock Option Agreement
Granted
Under 2023 Equity Incentive Plan
This
agreement (the “Agreement”) evidences the grant by Barfresh Food Group, Inc., a Delaware corporation (the “Company”),
on ______ (the “Grant Date”) to __________, a ________ of the Company (the “Participant”),
of an option (the “Option”) to purchase, in whole or in part, on the terms provided herein and in the Company’s
2023 Equity Incentive Plan (the “Plan”), a total of _______ shares (the “Shares”)
of common stock of the Company (“Common Stock”) at $_____ per Share. Unless earlier terminated, this
option shall expire at 5:00 p.m., Eastern Time, on the 8th anniversary of the Grant Date (the “Final Exercise
Date”).
It
is intended that the Option evidenced by this Agreement shall be a non-qualified stock option granted
under the Plan. Except as otherwise indicated by the context, the term “Participant”, as used in this
Agreement, shall be deemed to include any person who acquires the right to exercise this option validly under its terms.
If
any term(s) of this Agreement contradicts any term(s) set forth in an effective consulting or engagement agreement between the Company
or one of its wholly owned subsidiaries and Participant, the term(s) of the consulting/engagement agreement shall control.
Nothing
herein is intended as a representation that the Shares may be sold without registration under state and federal securities laws or an
exemption therefrom or that such registration or exemption will be available at any specified time. The Participant understands and agrees
that so long as Participant remains a service provider to the Company, Participant shall be solely responsible for the taxes due upon
exercise of the Option and that the Company is not required to withhold any amounts upon exercise of this Option by Participant in order
to satisfy Participant’s obligations under the Internal Revenue Code (the “Code”).
__________
(___%) of the options will vest on ______________, and ________ (__%) of the options will vest on ______________.
The
right of exercise shall be cumulative so that to the extent the Option is not exercised in any period to the maximum extent permissible
it shall continue to be exercisable, in whole or in part, with respect to all Shares for which it is vested until the earlier of the
Final Exercise Date or as provided in Section 3 hereof or in the Plan.
(a)
(i) Manner of Exercise. Each election to exercise the Option shall be in writing, in substantially the form of Notice of Election
to Exercise attached hereto as Exhibit A (the “Exercise Notice”), signed by the Participant, and received
by the Company at its principal office, accompanied by this Agreement, and payment in full in the manner provided herein. The Participant
may purchase less than the number of Shares covered hereby, provided that no partial exercise of the Option may be for any fractional
share.
(ii)
Manner of Payment. Payment of the exercise price may be made in cash, by certified or cashier’s check or on a cashless basis.
The Participant may exercise the Option, in whole or in part, on a cashless basis determined by the following formula:
X=Y*(A-B)
A
| |
Where |
X = the number of Shares to be issued to the Participant. |
Y
= the number of exercised Shares.
A
= the Fair Value (as defined below) of one Share (determined at the date of delivery of the Exercise Notice).
B
= the Exercise Price (as adjusted to the date of such calculation).
(iii)
For the purposes of Section 3(a)(ii), Fair Value per share of Common Stock shall mean the average Closing Price (as defined below) per
share of Common Stock on the five (5) trading days immediately preceding the date on which the Notice of Exercise is received by the
Company. Closing Price means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common
Stock is then listed or quoted on a national securities exchange, the closing price per share of the Common Stock for such date (or the
nearest preceding date) on the primary eligible market or exchange on which the Common Stock is then listed or quoted; or (b) if prices
for the Common Stock are then quoted on a securities market that is not a national securities exchange, the closing bid price per share
of the Common Stock for such date (or the nearest preceding date) so quoted. If the Common Stock is not publicly traded as set forth
above, the Fair Value per share of Common Stock shall be reasonably and in good faith determined by the Board of Directors of the Company
as of the date which the Notice of Exercise is received by the Company.
(b)
Continuous Relationship with the Company Required. Except as otherwise provided in this Section 3, the Option may not be exercised
unless the Participant, at the time he or she exercises the Option, is, and has been at all times since the Grant Date, an employee,
consultant or director of the Company or any parent or subsidiary of the Company as defined in Section 424(e) or (f) of the Code (an
“Eligible Participant”).
(c)
Termination of Relationship with the Company. If the Participant ceases to be an Eligible Participant for any reason, then, except
as provided in paragraphs (d) through (g) below or pursuant to a separate consulting/engagement agreement between the Company or one
of its wholly owned subsidiaries and Participant, the right to exercise the Option shall terminate upon such cessation (but in no event
after the Final Exercise Date); provided that the Option shall be exercisable only to the extent that the Participant was entitled
to exercise the Option on the date of such cessation.
Unless
otherwise provided by the Board of Directors of the Company or pursuant to a separate consulting/engagement agreement between the Company
or one of its wholly owned subsidiaries and Participant, all of the Options that have not yet vested as of the date the Participant ceases
to be an Eligible Participant shall terminate immediately upon such cessation for any reason whatsoever, including, termination for cause,
termination without cause, disability and death.
(d)
Termination for Cause. Notwithstanding anything herein contained to the contrary, the Option shall terminate upon the date of
the first discovery by the Company of any reason for the termination of the Participant as an Eligible Participant for cause (as determined
in the sole discretion of the Board of Directors of the Company). If the Participant’s status as an Eligible Participant is suspended
pending any investigation by the Company as to whether the Participant should be terminated for cause, the Participant’s rights
under this Agreement and the Plan shall likewise be suspended during the period of any such investigation.
(e)
Exercise Period Upon Disability. If the Participant becomes disabled (within the meaning of Section 22(e)(3) of the Code) prior
to the Final Exercise Date while he or she is an Eligible Participant, the Option shall be exercisable, only to the extent that the Participant
was entitled to exercise the Option on the date of such disability, within the period of one year following the date of disability of
the Participant, by the Participant, provided that the Option shall not be exercisable after the Final Exercise Date.
(f)
Exercise Period Upon Death. If the Participant dies prior to the Final Exercise Date while he or she is an Eligible Participant,
the Option shall be exercisable, only to the extent that the Participant was entitled to exercise the Option on the date of death, within
the period of one year following the date of death of the Participant, by the person(s) to whom the Participant’s rights under
the Option shall pass by the Participant’s will or by the laws of descent and distribution, provided that the Option shall
not be exercisable after the Final Exercise Date.
(g)
Termination Without Cause. If the Participant is terminated without “cause”, the Option shall be exercisable, only
to the extent that the Participant was entitled to exercise the Option on the date of such termination, within the period of three months
following the date of termination of the Participant, by the Participant, provided that the Option shall not be exercisable after
the Final Exercise Date.
(a)
Withholding. No Shares will be issued pursuant to the exercise of the Option unless and until the Participant pays to the Company,
or makes provision satisfactory to the Company for payment of, any federal, state or local withholding taxes required by law to be withheld
in respect of the Option. Regardless of any action the Company or the Participant take with respect to any or all income tax (including
federal, state, local and foreign tax), social insurance, payroll tax, payment on account or other tax-related items related to the Participant’s
participation in the Plan and legally applicable to the Participant (“Tax-Related Items”), the Participant
acknowledges that the ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and may exceed
the amount actually withheld by the Company.
| 5. |
Transfer Restrictions. |
(a)
The Option may not be sold, assigned, transferred, pledged or otherwise encumbered by the Participant, either voluntarily or by operation
of law, except by will or the laws of descent and distribution, and, during the lifetime of the Participant, the Option shall be exercisable
only by the Participant.
(b)
The issuance and transfer of Shares shall be subject to compliance by the Company and the Participant with all applicable requirements
of federal, state, local or foreign securities laws and with all applicable requirements of any stock exchange or trading market on which
the Shares may be listed at the time of such issuance or transfer.
By
entering into this Agreement and accepting the grant of the Option evidenced hereby, the Participant acknowledges that: (i) the Plan
is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by
the Company at any time unless otherwise provided in the Plan and this Agreement; (ii) the grant of the Option is voluntary and occasional
and does not create any contractual or other right to receive future grants of options, or benefits in lieu of options; (iii) all decisions
with respect to future grants, if any, will be at the sole discretion of the Company; (iv) the Participant’s participation in the
Plan shall not create a right to further engagement with the Company and shall not interfere with the ability of the Company to terminate
the Participant’s consulting/engagement relationship at any time; (v) the Participant’s participation in the Plan is voluntary;
(vi) the future value of the underlying Shares is unknown and cannot be predicted with certainty, and if the Participant exercises the
Option and obtains Shares, the value of those Shares may increase or decrease in value, even below the exercise price; and (vii) if the
underlying Shares do not increase in value, the Option will have no value.
This
Agreement shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of the Code. The
Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify
this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take
any other actions, as the Company determines are necessary or appropriate to ensure that the Option qualifies for exemption from, or
complies with the requirements of, Code Section 409A; provided, however, that the Company makes no representation that the Option
will be exempt from, or will comply with, Section 409A of the Code, and makes no undertakings to preclude Section 409A of the Code from
applying to the Option or to ensure that it complies with Section 409A of the Code. For the avoidance of doubt, the Participant hereby
acknowledges and agrees that the Company will have no liability to the Participant or any other party if the grant, vesting, exercise,
issuance of shares or any other transaction under this Agreement is not exempt from, or compliant with, Code Section 409A, or for any
action taken by the Company with respect thereto.
The
Company reserves the right to impose other requirements on the Participant’s participation in the Plan, to the extent the Company
determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require
the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
By
accepting the Option, the Participant represents and agrees that none of the Shares of Common Stock purchased upon exercise of the Option
will be distributed in violation of applicable federal and state laws and regulations. In addition, the Company may require, as a condition
of exercising the Option, that the Participant execute an undertaking, in such a form as the Company shall reasonably specify, that the
Shares are being purchased only for investment and without any then-present intention to sell or distribute such shares.
| 10. |
Adjustments for Stock Splits, Stock Dividends, Etc. |
(a)
In the case of any recapitalization, reclassification, consolidation, stock split, stock dividend, subdivision or combination of shares
or like change in the nature of the Common Stock covered by this Agreement, the number of Options and exercise price shall be proportionately
adjusted.
(b)
The existence of the Options shall not affect in any way the right or power of the Company or its shareholders to make or authorize any
adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure or its business, or any merger
or consolidation of the Company, or any issue of bonds, debentures, preferred or preference stocks ahead of or affecting the shares issuable
upon exercise of the Options, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets
or business, or any other corporate act or proceeding, whether of a similar character or otherwise.
The
acceptance of the Option, exercise of the Option, and the sale of Common Stock issued following the exercise of Option may have consequences
under federal and state tax and securities laws which may vary depending upon the individual circumstances of the Participant. Accordingly,
the Participant acknowledges that he or she has been advised to consult his or her personal legal and tax advisor in connection with
this Agreement and his or her dealings with respect to the Options. Without limiting other matters to be considered with the assistance
of the Participant’s professional advisors, the Participant should consider: (a) whether upon the exercise of the Options, the
Participant will file an election with the Internal Revenue Service pursuant to Section 83(b) of the Code and the implications of alternative
minimum tax pursuant to the Code; (b) the merits and risks of an investment in the underlying Shares of Common Stock; and (c) any resale
restrictions that might apply under applicable securities laws.
| 12. |
Provisions of the Plan. |
The
terms of the Options are subject to the provisions of the Plan, as the same may from time to time be amended, and any inconsistencies
between this Agreement and the Plan, as the same may be from time to time amended, shall be governed by the provisions of the Plan, a
copy of which has been delivered to the Participant, and which is available for inspection at the principal offices of the Company.
(a)
Disputes. Any dispute or disagreement that may arise under or as a result of this Agreement, or any question as to the interpretation
of this Agreement, may be determined by the Company’s Board of Directors in its absolute and uncontrolled discretion, and any such
determination shall be final, binding, and conclusive on all affected persons.
(b)
Notices. Any notice that a party may be required or permitted to give to the other shall be in writing, and may be delivered personally,
by overnight courier or by certified or registered mail, postage prepaid, addressed to the parties at their current principal addresses,
or such other address as either party, by notice to the other, may designate in writing from time to time.
(c)
Law Governing. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without
reference to the principles thereof relating to the conflict of laws.
(d)
Agreement Binding. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties
hereto.
(e)
Further Action. The parties hereto shall execute and deliver all documents, provide all information and take or forbear from all
such action as may be necessary or appropriate to achieve the purposes of the Agreement.
(f)
Parties of Interest. Nothing herein shall be construed to be to the benefit of any third party, nor is it intended that any provision
shall be for the benefit of any third party.
(g)
Savings Clause. If any provision of this Agreement, or the application of such provision to any person or circumstance, shall
be held invalid, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as
to which it is held invalid, shall not be affected thereby.
[signature
page follows]
IN
WITNESS WHEREOF, the Company has caused this Non-Qualified Stock Option Agreement to be executed under its corporate seal by its
duly authorized officer. This Agreement shall take effect as a sealed instrument.
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Barfresh Food Group, Inc. |
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By: |
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Name: |
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Title: |
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PARTICIPANT’S
ACCEPTANCE
The
undersigned hereby accepts the foregoing Option and agrees to the terms and conditions thereof. The undersigned hereby acknowledges receipt
of a copy of Barfresh Food Group, Inc.’s 2023 Equity Incentive Plan.
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PARTICIPANT: |
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Name: |
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Address: |
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EXHIBIT
A
Notice
of Election to Exercise
Barfresh
Food Group, Inc.
3600
Wilshire Boulevard, Suite 1720
Beverly
Hills, CA 90010
This
Notice of Election to Exercise shall constitute proper notice pursuant to Barfresh Food Group, Inc.’s (the “Company”)
2023 Equity Incentive Plan (the “Plan”) and Section 3(a)(i) of that certain Non-Qualified Stock Option Agreement
(the “Agreement”) dated as of ___________, between the Company and the undersigned.
The
undersigned hereby elects to exercise Participant’s option to purchase [____________________] shares of common stock
of the Company at a price of US$[_______] per share, for aggregate consideration of US$[__________], on the
terms and conditions set forth in the Agreement and the Plan.
Payment
is to be made as follows:
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☐ |
Cash |
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☐ |
Bank or Certified Check |
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☐ |
Cashless Exercise Pursuant to Section 3(a)(ii) of this
Agreement |
The
Optionee hereby directs the Company to issue, register and deliver the certificates representing the shares as follows:
| Registration Information: |
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Delivery Instructions: |
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|
|
| (Name to appear on certificates) |
|
Name |
| Address: |
|
Address: |
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Telephone
Number: |
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DATED
at ______________________________, the _____ day of __________, 20_____.
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(Name of Optionee – Please type or print) |
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|
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(Signature and, if applicable, Title) |
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(Address of Optionee) |
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(City, State and Zip Code of Optionee) |
Exhibit
4.8
BARFRESH
FOOD GROUP INC.
RESTRICTED
STOCK UNIT AGREEMENT
This
Restricted Stock Unit Agreement (this “Agreement”) is made and entered into as of ___________ (the “Grant
Date”) by and between BARFRESH FOOD GROUP INC., a Delaware corporation (the “Company”) and Cameron
Barker (the “Grantee”).
WHEREAS,
the Company has adopted the 2023 Equity Incentive (the “Plan”) pursuant to which awards of Restricted Stock
Units may be granted; and
WHEREAS,
the Committee has determined that it is in the best interests of the Company and its shareholders to grant the award of Restricted Stock
Units provided for herein.
NOW,
THEREFORE, the parties hereto, intending to be legally bound, agree as follows:
1.
Grant of Restricted Stock Units.
1.1
Pursuant to Section 10 of the Plan, the Company hereby issues to the Grantee on the Grant Date an Award consisting of, in the aggregate,
________ Restricted Stock Units (the “Restricted Stock Units”). Each Restricted Stock Unit represents the right
to receive one share of Common Stock, subject to the terms and conditions set forth in this Agreement and the Plan. Capitalized terms
that are used but not defined herein have the meaning ascribed to them in the Plan.
2.
Consideration. The grant of the Restricted Stock Units is made in consideration of
the services to be rendered by the Grantee to the Company.
3.
Vesting.
Except
as otherwise provided herein, provided that the Grantee remains in Continuous Service through the applicable vesting date, and further
provided that any additional conditions and performance goals set forth in Schedule I have been satisfied, the Restricted Stock Units
will vest in accordance with the following schedule (the period during which restrictions apply, the “Restricted Period”):
| Vesting
Date |
Number of
Restricted Stock Units That Vest |
| _______________ |
________% |
Once
vested, the Restricted Stock Units become “Vested Units.”
3.1
The foregoing vesting schedule notwithstanding, if the Grantee’s Continuous Service terminates for any reason at any time before
all of his or her Restricted Stock Units have vested, the Grantee’s unvested Restricted Stock Units shall be automatically forfeited
upon such termination of Continuous Service and neither the Company nor any Affiliate shall have any further obligations to the Grantee
under this Agreement.
4.
Restrictions. Subject to any exceptions set forth in this Agreement or the Plan,
during the Restricted Period and until such time as the Restricted Stock Units are settled in accordance with Section 6, the Restricted
Stock Units or the rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered
by the Grantee. Any attempt to assign, alienate, pledge, attach, sell or otherwise transfer or encumber the Restricted Stock Units or
the rights relating thereto shall be wholly ineffective and, if any such attempt is made, the Restricted Stock Units will be forfeited
by the Grantee and all of the Grantee’s rights to such units shall immediately terminate without any payment or consideration by
the Company.
5.
Rights as Shareholder; Dividend Equivalents.
5.1
The Grantee shall not have any rights of a shareholder with respect to the shares of Common Stock underlying the Restricted Stock Units
unless and until the Restricted Stock Units vest and are settled by the issuance of such shares of Common Stock.
5.2
Upon and following the settlement of the Restricted Stock Units, the Grantee shall be the record owner of the shares of Common Stock
underlying the Restricted Stock Units unless and until such shares are sold or otherwise disposed of, and as record owner shall be entitled
to all rights of a shareholder of the Company (including voting rights).
5.3
The Grantee shall not be entitled to any Dividend Equivalents with respect to the Restricted Stock Units to reflect any dividends payable
on shares of Common Stock.
6.
Settlement of Restricted Stock Units.
6.1
Subject to Section 9 hereof, promptly following the vesting date, and in any event no later than March 15 of the calendar year following
the calendar year in which such vesting occurs, the Company shall (a) issue and deliver to the Grantee the number of shares of Common
Stock equal to the number of Vested Units; and (b) enter the Grantee’s name on the books of the Company as the shareholder of record
with respect to the shares of Common Stock delivered to the Grantee.
6.2
If the Grantee is deemed a “specified employee” within the meaning of Section 409A of the Code, as determined by the Committee,
at a time when the Grantee becomes eligible for settlement of the RSUs upon his “separation from service” within the meaning
of Section 409A of the Code, then to the extent necessary to prevent any accelerated or additional tax under Section 409A of the Code,
such settlement will be delayed until the earlier of: (a) the date that is six months following the Grantee’s separation from service
and (b) the Grantee’s death.
6.3
To the extent that the Grantee does not vest in any Restricted Stock Units, all interest in such Restricted Stock Units shall be forfeited.
The Grantee has no right or interest in any Restricted Stock Units that are forfeited.
7.
No Right to Continued Service. Neither the Plan nor this Agreement shall confer upon
the Grantee any right to be retained in any position, as an Employee, Consultant or Director of the Company. Further, nothing in the
Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Grantee’s Continuous Service
at any time, with or without Cause.
8.
Adjustments. If any change is made to the outstanding Common Stock or the capital
structure of the Company, if required, the Restricted Stock Units shall be adjusted or terminated in any manner as contemplated by Section
14 of the Plan.
9.
Tax Liability and Withholding.
9.1
The Grantee shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the
Grantee pursuant to the Plan, the amount of any required withholding taxes in respect of the Restricted Stock Units and to take all such
other action as the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes. The Committee may
permit the Grantee to satisfy any federal, state or local tax withholding obligation by any of the following means, or by a combination
of such means:
(a)
tendering a cash payment.
(b)
authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable or deliverable to the Grantee
as a result of the vesting of the Restricted Stock Units; provided, however, that no shares of Common Stock shall be withheld with a
value exceeding the maximum amount of tax required to be withheld by law.
(c)
delivering to the Company previously owned and unencumbered shares of Common Stock.
9.2
Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related
withholding (“Tax-Related Items”), the ultimate liability for all Tax-Related Items is and remains the Grantee’s
responsibility and the Company (a) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection
with the grant, vesting or settlement of the Restricted Stock Units or the subsequent sale of any shares; and (b) does not commit to
structure the Restricted Stock Units to reduce or eliminate the Grantee’s liability for Tax-Related Items.
10.
Compliance with Law. The issuance and transfer of shares of Common Stock shall be
subject to compliance by the Company and the Grantee with all applicable requirements of federal and state securities laws and with all
applicable requirements of any stock exchange on which the Company’s shares of Common Stock may be listed. No shares of Common
Stock shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies
have been fully complied with to the satisfaction of the Company and its counsel.
11.
Notices. Any notice required to be delivered to the Company under this Agreement
shall be in writing and addressed to the Chief Financial Officer of the Company at the Company’s principal corporate offices. Any
notice required to be delivered to the Grantee under this Agreement shall be in writing and addressed to the Grantee at the Grantee’s
address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved
by the Company) from time to time.
12.
Governing Law. This Agreement will be construed and interpreted in accordance with
the laws of the State of Delaware without regard to conflict of law principles.
13.
Interpretation. Any dispute regarding the interpretation of this Agreement shall
be submitted by the Grantee or the Company to the Committee for review. The resolution of such dispute by the Committee shall be final
and binding on the Grantee and the Company.
14.
Restricted Stock Units Subject to Plan. This Agreement is subject to the Plan as
approved by the Company’s shareholders. The terms and provisions of the Plan as it may be amended from time to time are hereby
incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of
the Plan, the applicable terms and provisions of the Plan will govern and prevail.
15.
Successors and Assigns. The Company may assign any of its rights under this Agreement.
This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions
on transfer set forth herein, this Agreement will be binding upon the Grantee and the Grantee’s beneficiaries, executors, administrators
and the person(s) to whom the Restricted Stock Units may be transferred by will or the laws of descent or distribution.
16.
Severability. The invalidity or unenforceability of any provision of the Plan or
this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision
of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.
17.
Discretionary Nature of Plan. The Plan is discretionary and may be amended, cancelled
or terminated by the Company at any time, in its discretion. The grant of the Restricted Stock Units in this Agreement does not create
any contractual right or other right to receive any Restricted Stock Units or other Awards in the future. Future Awards, if any, will
be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment
of the terms and conditions of the Grantee’s employment with the Company.
18.
Amendment. The Committee has the right to amend, alter, suspend, discontinue or cancel
the Restricted Stock Units, prospectively or retroactively; provided, that, no such amendment shall adversely affect the Grantee’s
material rights under this Agreement without the Grantee’s consent.
19.
Section 409A. This Agreement is intended to comply with Section 409A of the Code
or an exemption thereunder and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional
taxes or penalties under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments
and benefits provided under this Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or
any portion of any taxes, penalties, interest or other expenses that may be incurred by the Grantee on account of non-compliance with
Section 409A of the Code.
20.
No Impact on Other Benefits. The value of the Grantee’s Restricted Stock Units
is not part of his or her normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or
similar employee benefit.
21.
Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement
transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended
to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper
document bearing an original signature.
22.
Acceptance. The Grantee hereby acknowledges receipt of a copy of the Plan and this
Agreement. The Grantee has read and understands the terms and provisions thereof, and accepts the Restricted Stock Units subject to all
of the terms and conditions of the Plan and this Agreement. The Grantee acknowledges that there may be adverse tax consequences upon
the vesting or settlement of the Restricted Stock Units or disposition of the underlying shares and that the Grantee has been advised
to consult a tax advisor prior to such vesting, settlement or disposition.
[signature
page follows]
IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
| |
BARRESH FOOD GROUP INC. |
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By: |
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Name: |
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Title: |
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By: |
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Name: |
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Exhibit
5.1
7979
E. Tufts Avenue, Ste. 1750, Denver, CO 80237
Phone:
720.306.1001 ● E-Mail: info@doidacrow.com ● Web: www.doidacrow.com
August
14, 2023
Barfresh
Food Group Inc.
3600
Wilshire Boulevard, Suite 1720
Los
Angeles, California 90010
Re:
Registration Statement on Form S-8
Ladies
and Gentlemen:
This
opinion is furnished to you in connection with the Registration Statement on Form S-8 (the “Registration Statement”)
to be filed by Barfresh Food Group Inc., a Delaware corporation (the “Company”), with the Securities and Exchange
Commission (the “Commission”) on or about the date hereof, covering the registration under the Securities Act of 1933,
as amended, of an aggregate of 650,000 shares (the “Shares”) of the Company’s common stock, par value $0.000001
per share (“Common Stock”), consisting of (i) 569,873 shares of Common Stock reserved for future issuance under the
Company’s 2023 Equity Incentive Plan, and (ii) 80,127 shares of Common Stock that may be issued pursuant to the vesting of restricted
stock units granted under the Company’s 2023 Equity Incentive Plan (collectively, the “Shares”). As the Company’s
legal counsel, we have reviewed the actions proposed to be taken by the Company in connection with the issuance and sale of the Shares
to be issued under such plan.
We
have examined such instruments, documents, certificates and records, and such questions of law, as we have considered necessary or appropriate
for the basis of our opinions hereinafter expressed. In such examination, we have assumed (i) the authenticity of original documents
and the genuineness of all signatures; (ii) the conformity to the originals of all documents submitted to us as copies; (iii) the truth,
accuracy and completeness of the information, representations and warranties contained in the instruments, documents, certificates and
records we have reviewed; (iv) that the Registration Statement, and any amendments thereto, will have become effective under the Securities
Act; and (v) the legal capacity and competency of all natural persons. As to any facts material to the opinions expressed herein that
were not independently established or verified, we have relied upon oral or written statements and representations of officers and other
representatives of the Company.
Based
upon the foregoing, and subject to the qualifications set forth below, it is our opinion that the Shares, when issued and sold in the
manner referred to in the applicable Plan and pursuant to the applicable agreements that accompany the Plans, will be legally and validly
issued, fully paid and nonassessable.
We
express no opinion as to any matter relating to the laws of any jurisdiction other than the federal laws of the United States of America
and the General Corporation Law of the State of Delaware.
We
consent to the use of this opinion as an exhibit to the Registration Statement, and further consent to the use of our name wherever appearing
in the Registration Statement and any amendments thereto. In giving such consent, we do not thereby admit that we are in the category
of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission thereunder.
| Very truly yours, |
|
| |
|
| /s/ Doida Crow Legal LLC |
|
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|
| DOIDA CROW LEGAL LLC |
|
Exhibit
23.1
CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We
have issued our report dated March 2, 2023, with respect to the consolidated financial statements of Barfresh Food Group Inc. included
in the Annual Report on Form 10-K for the year ended December 31, 2022, which is incorporated by reference in this Registration Statement.
We consent to the incorporation by reference of the aforementioned report in this Registration Statement.
| /s/ EIDE BAILLEY LLP |
|
| |
|
| Denver, Colorado |
|
| August 14, 2023 |
|
Exhibit
107
Calculation
of Filing Fee Tables
FORM
S-8
(Form
Type)
Barfresh
Food Group Inc.
(Exact
Name of Registrant as Specified in its Charter)
Table
1: Newly Registered Securities
| Security Type | |
Security Class Title | |
Fee Calculation or Carry Forward Rule | |
Amount Registered(1) |
| |
Maximum Offering Price Per Share | | |
Maximum
Aggregate Offering Price | |
Fee
Rate | |
Amount
of Registration Fee | |
| Equity | |
Common Stock, par value $0.000001 per share | |
Rules 457(c) and (h) | |
| 650,000 |
(2) | |
$ | 1.94 | (3) | $ |
1,261,878 | |
110.20 per $1,000,000 | |
$ | 139.06 | |
| | |
Total Offering Amounts |
| |
| | | $ |
1,261,878 | |
| |
$ | 139.06 | |
| | |
Total Fee Offsets |
| | | |
| |
| |
| — | |
| | |
Net Fee Due |
| |
| | | |
| |
| |
$ | 139.06 | |
| (1) |
Pursuant
to Rule 416(a) of the Securities Act of 1933, as amended (the “Securities Act”), this registration statement (the
“Registration Statement”) shall also cover any additional shares of the Registrant’s common stock, par value
$0.000001 per share (“Common Stock”) that become issuable under the Registrant’s 2023 Equity Incentive Plan
(the “2023 Plan”) by reason of any stock dividend, stock split, recapitalization or other similar transaction
effected without receipt of consideration or conversion of the Registrant’s Common Stock that increases the number of outstanding
shares of Common Stock. |
| |
|
| (2) |
Represents
650,000 shares of Common Stock reserved and available for issuance under the 2023 Plan as of the date of this Registration Statement.
As of the date hereof, 5,000 shares of Common Stock are subject to outstanding restricted stock awards, and 75,127 shares of Common
Stock are subject to outstanding performance share awards under the 2023 Plan. |
| |
|
| (3) |
Pursuant
to Rule 457(c) and 457(h) under the Securities Act, and solely for the purpose of calculating the registration fee, the proposed
maximum offering price per share is $1.94, which is the average of the high and low prices of shares of Common Stock on The
Nasdaq Capital Market on August 8, 2023 (such date being within five business days of the date that this Registration Statement was
filed with the U.S. Securities and Exchange Commission (the “SEC”)). |
Barfresh Food (NASDAQ:BRFH)
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