annual bonuses are paid, but in no event later than March 15th of the calendar year immediately following the end of the annual performance review process.
5. Options. You will receive an option to purchase 1,329,000 shares of Proteon Therapeutics common stock (which represents 4.5% of the total equity that will be outstanding after all money from Series A investors has been paid into the Company) subject to adjustment for stock splits, combinations, recapitalizations and the like after the date of grant pursuant, and subject to the Companys Proteon Therapeutics, Inc 2006 Equity Incentive Plan (Plan) and the Companys standard form of Stock Option Grant Notice and related Stock Option Agreement (collectively Stock Agreement) between you and the Company. The option will be an incentive stock option (ISO) to the extent permissible under Section 422 of the Internal Revenue Code and will have an exercise price equal to the Boards estimate of the current fair market value of Proteons common stock at the time of the grant. The option will vest 25% upon the first anniversary of the date of grant and 1/12 of the remaining amount quarterly thereafter.
6. Benefits. You will be entitled to participate in any and all employee benefit plans, programs and perquisites from time to time in effect for executives of the Company generally, on terms no less favorable than those provided to any other such executive.
7. Vacation. In the year that this Agreement becomes effective and in each year of employment thereafter, you will accrue vacation per standard Company policy. However, your vacation benefit shall not be less than four (4) weeks and it shall be taken at such times and intervals as shall be determined by you, subject to the reasonable business needs of the Company. Carry-over privileges for unused vacation time shall be consistent with Company policy.
8. Business Expenses. The Company shall pay or reimburse you for all reasonable business expenses incurred or paid by you in the performance of your duties and responsibilities hereunder, subject to such reasonable documentation as may be specified by the Company.
9. Termination of Employment and Severance Benefits.
(a) By the Company for Cause. The Company may terminate your employment hereunder for Cause, as defined below, provided that the Company has given written notice to you setting forth in reasonable detail the nature of such Cause. The following, as determined by the Board in its reasonable judgment, shall constitute Cause for Termination:
(i) Your commission of any felony or any crime involving moral turpitude;
(ii) Your willful failure to perform, or gross negligence in the performance