<SEC-DOCUMENT>0001140361-24-027612.txt : 20240528
<SEC-HEADER>0001140361-24-027612.hdr.sgml : 20240528
<ACCEPTANCE-DATETIME>20240528140014
ACCESSION NUMBER:		0001140361-24-027612
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20240528
DATE AS OF CHANGE:		20240528

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Adverum Biotechnologies, Inc.
		CENTRAL INDEX KEY:			0001501756
		STANDARD INDUSTRIAL CLASSIFICATION:	BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
		ORGANIZATION NAME:           	03 Life Sciences
		IRS NUMBER:				205258327
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-36579
		FILM NUMBER:		24990184

	BUSINESS ADDRESS:	
		STREET 1:		100 CARDINAL WAY
		CITY:			REDWOOD CITY
		STATE:			CA
		ZIP:			94063
		BUSINESS PHONE:		(650) 649-1004

	MAIL ADDRESS:	
		STREET 1:		100 CARDINAL WAY
		CITY:			REDWOOD CITY
		STATE:			CA
		ZIP:			94063

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Avalanche Biotechnologies, Inc.
		DATE OF NAME CHANGE:	20100921
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEFA14A
<SEQUENCE>1
<FILENAME>ef20030013_defa14a.htm
<DESCRIPTION>DEFA14A
<TEXT>
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    <div style="text-align: center; font-size: 14pt; font-weight: bold;">UNITED STATES</div>
    <div style="text-align: center; font-size: 14pt; font-weight: bold;">SECURITIES AND EXCHANGE COMMISSION</div>
    <div style="text-align: center; font-size: 12pt; font-weight: bold;">Washington, D.C. 20549</div>
    <div>&#160;</div>
    <div style="text-align: center; font-size: 18pt; font-weight: bold;">SCHEDULE 14A INFORMATION</div>
    <div>&#160;</div>
    <div style="text-align: center; font-weight: bold;">Proxy Statement Pursuant to Section 14(a) of the</div>
    <div style="text-align: center; font-weight: bold;">Securities Exchange Act of 1934</div>
    <div style="text-align: center; font-weight: bold;">(Amendment No. )</div>
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              <td style="width: 20%;"><font style="color: rgb(0, 0, 0);">Filed by the Registrant </font>&#9746;</td>
              <td style="width: 80%;"><font style="color: rgb(0, 0, 0);">Filed by a Party other than the Registrant &#8201;&#9744;</font></td>
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      <div style="color: rgb(0, 0, 0);">Check the appropriate box:</div>
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            <div style="color: rgb(0, 0, 0);">Preliminary Proxy Statement</div>
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          <td style="width: auto; vertical-align: top;">
            <div style="color: rgb(0, 0, 0); font-weight: bold;">Confidential, for use of the Commission only (as permitted by Rule 14a-6(e)(2))</div>
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            <div style="color: rgb(0, 0, 0);">Definitive Proxy Statement</div>
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            <div style="color: rgb(0, 0, 0);">Definitive Additional Materials</div>
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            <div style="color: rgb(0, 0, 0);">Soliciting Material Under Rule 14a-12</div>
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      <div><br>
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    <div style="font-size: 24pt;">
      <div style="text-align: center; color: rgb(0, 0, 0); font-weight: bold;">Adverum Biotechnologies, Inc.</div>
    </div>
    <div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-weight: bold;">(Name of Registrant as Specified in its Charter)</div>
      <div>&#160;</div>
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    <div>
      <div style="color: rgb(0, 0, 0);">Payment of Filing Fee (Check all boxes that apply):</div>
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            <div style="color: rgb(0, 0, 0);">No fee required</div>
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            <div style="color: rgb(0, 0, 0);">Fee paid previously with preliminary materials.</div>
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          <td style="width: 18pt; vertical-align: top; color: rgb(0, 0, 0);">&#9744;</td>
          <td style="width: auto; vertical-align: top;">
            <div style="color: rgb(0, 0, 0);">Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.</div>
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    <div>
      <div style="text-align: justify; color: rgb(0, 0, 0);">This proxy supplement, dated May 28, 2024 (this &#8220;Supplement&#8221;), supplements the definitive proxy statement on Schedule 14A of Adverum Biotechnologies, Inc. a Delaware corporation (the &#8220;Company&#8221;),
        filed with the Securities and Exchange Commission on May 2, 2024 (the &#8220;Proxy Statement&#8221;), for the 2024 Annual Meeting of Stockholders (the &#8220;Annual Meeting&#8221;) of the Company to be held on Monday, June 17, 2024. Capitalized terms used in this
        Supplement and not otherwise defined herein have the meanings given to them in the Proxy Statement.</div>
    </div>
    <div>
      <div><br>
      </div>
      <div style="text-align: justify; color: rgb(0, 0, 0); font-weight: bold;">Amendment and Restatement of Non-Employee Director Compensation Policy</div>
    </div>
    <div>
      <div><br>
      </div>
      <div style="text-align: justify; color: rgb(0, 0, 0);">The Company maintains a non-employee director compensation policy. In May 2024, the compensation committee of the Company&#8217;s board of directors approved the amendment and restatement of the
        Company&#8217;s non-employee director compensation policy. The non-employee director compensation policy as amended and restated on May 22, 2024, is set forth below.</div>
      <div>&#160;</div>
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    <div style="text-align: center; font-variant: small-caps; font-weight: bold;">Adverum Biotechnologies, Inc.</div>
    <div>&#160;</div>
    <div style="text-align: center; font-variant: small-caps; font-weight: bold;">Non-Employee Director Compensation Policy Adopted by </div>
    <div style="text-align: center; font-variant: small-caps; font-weight: bold;"> <br>
    </div>
    <div style="text-align: center; font-variant: small-caps; font-weight: bold;">the Compensation Committee: May 22, 2024</div>
    <div style="text-align: center; text-indent: -0.25pt; margin-right: 93.05pt; margin-left: 92.35pt; font-variant: small-caps; font-weight: bold;"> <br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">Each member of the board of directors (the &#8220;<font style="font-weight: bold; font-style: italic;">Board</font>&#8221;) of Adverum Biotechnologies, Inc. (the &#8220;<font style="font-weight: bold; font-style: italic;">Company</font>&#8221;) who is a Non-Employee Director (as defined in the Adverum Biotechnologies, Inc. 2024 Equity Incentive Award Plan (the &#8220;<font style="font-weight: bold; font-style: italic;">Plan</font>&#8221;) will be eligible to receive cash and
      equity compensation as set forth in this Adverum Biotechnologies, Inc. Non-Employee Director Compensation Policy (this &#8220;<font style="font-weight: bold; font-style: italic;">Policy</font>&#8221;). For the purposes of this Policy, &#8220;<font style="font-weight: bold; font-style: italic;">Total Direct Annual Compensation</font>&#8221; shall mean the aggregate amount of cash and equity compensation to which a Non-Employee Director is entitled pursuant to this Policy, other than any such compensation received for
      service as Chair of the Board. Capitalized terms not explicitly defined in this Policy but defined in the Plan will have the same definitions as in the Plan.</div>
    <div>&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;">This Policy, as adopted on May 22, 2024, will become effective immediately and will remain in effect until it is revised or rescinded by further action of the Board or the Compensation Committee of
      the Board; provided, however, that the Compensation Limits (as defined in Section 1 below), which, for the avoidance of doubt, supersede any non-employee director compensation limits set forth in the Plan, shall apply for a period of three years.</div>
    <div>&#160;</div>
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          <td style="width: 36pt; vertical-align: top; font-weight: bold;">1.</td>
          <td style="width: auto; vertical-align: top;">
            <div style="font-variant: small-caps; font-weight: bold;">Total Direct Annual Compensation Limits</div>
          </td>
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    <div>&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;">The limits below (each a &#8220;<font style="font-weight: bold; font-style: italic;">Compensation Limit</font>&#8221;) shall apply to the Total Direct Annual Compensation granted to each Non-Employee Director,
      other than a new Non-Employee Director. In applying the Compensation Limits below, the calculation of the Company&#8217;s market capitalization shall be made as of the date of the equity compensation grant.</div>
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              <td style="width: 72pt;">&#160;</td>
              <td style="text-align: right; vertical-align: top; width: 18pt;">
                <div style="text-align: left;">a.</div>
              </td>
              <td style="text-align: left; vertical-align: top; width: auto;">
                <div>While the Company&#8217;s market capitalization is below $250 million, Total Direct Annual Compensation shall not exceed $150,000 in any calendar year.</div>
              </td>
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      <div> </div>
    </div>
    <div>&#160;</div>
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          </td>
          <td style="width: 18pt; vertical-align: top;">b.</td>
          <td style="width: auto; vertical-align: top;">
            <div>While the Company&#8217;s market capitalization is greater than $250 million but below $500 million, Total Direct Annual Compensation shall not exceed $250,000 in any calendar year.</div>
          </td>
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    <div>&#160;</div>
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          </td>
          <td style="width: 18pt; vertical-align: top;">c.</td>
          <td style="width: auto; vertical-align: top;">
            <div>While the Company&#8217;s market capitalization is greater than $500 million but below $1 billion, Total Direct Annual Compensation shall not exceed $400,000 in any calendar year.</div>
          </td>
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    <div>&#160;</div>
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          <td style="width: 18pt; vertical-align: top;">d.</td>
          <td style="width: auto; vertical-align: top;">
            <div>While the Company&#8217;s market capitalization is higher than $1 billion, Total Direct Annual Compensation shall not exceed $475,000 in any calendar year.</div>
          </td>
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    <div> <br>
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          <td style="width: 36pt; vertical-align: top; font-weight: bold;">2.</td>
          <td style="width: auto; vertical-align: top;">
            <div style="font-variant: small-caps; font-weight: bold;">Cash Compensation.</div>
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    <div>&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-weight: bold;">(a)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-weight: bold;">Annual Retainers. </font>Each Non-Employee Director will be eligible to receive the following annual retainers
      for service as (i) a member and/or chair of the Board and (ii) a member or chair/co-chair of a committee of the Board (&#8220;<font style="font-weight: bold; font-style: italic;">Committee</font>&#8221;) set forth below, as applicable.</div>
    <div>&#160;</div>
    <table cellspacing="0" cellpadding="1" border="0" class="cfttable" id="z57e2ad2b23b84e2f8f14e394cd633920" style="font-family: 'Times New Roman'; font-size: 10pt; text-align: left; color: rgb(0, 0, 0); width: 100%;">

        <tr>
          <td valign="bottom" style="vertical-align: top; width: 25.24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); background-color: rgb(219, 219, 219);">
            <div style="font-weight: bold; text-align: center;">Board or Committee</div>
          </td>
          <td valign="bottom" style="vertical-align: top; width: 25.24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); background-color: rgb(219, 219, 219);">
            <div style="text-align: center; font-weight: bold;">Type of Retainer*</div>
          </td>
          <td valign="bottom" class="cftguttercell" colspan="1" style="vertical-align: bottom; padding-bottom: 2px; width: 0.97%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); background-color: rgb(219, 219, 219);">&#160;</td>
          <td valign="bottom" style="vertical-align: top; border-top: 2px solid rgb(0, 0, 0); width: 48%; background-color: rgb(219, 219, 219);">
            <div style="text-align: center; font-weight: bold;">Amount (Per Year)</div>
          </td>
          <td valign="bottom" nowrap="nowrap" class="cftfncell" colspan="1" style="vertical-align: bottom; padding-bottom: 2px; width: 0.97%; border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0); background-color: rgb(219, 219, 219);">&#160;</td>
        </tr>
        <tr>
          <td valign="bottom" rowspan="2" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="font-weight: bold;">Board</div>
          </td>
          <td valign="bottom" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">Chair</div>
          </td>
          <td valign="bottom" class="cftguttercell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td valign="bottom" class="cftnumcell" colspan="1" style="vertical-align: bottom; text-align: right; width: 48%; border-top: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">$35,000</div>
          </td>
          <td valign="bottom" nowrap="nowrap" class="cftfncell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">&#160;</td>
        </tr>
        <tr>
          <td valign="bottom" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">Member</div>
          </td>
          <td valign="bottom" class="cftguttercell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td valign="bottom" class="cftnumcell" colspan="1" style="vertical-align: bottom; text-align: right; width: 48%; border-top: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">$40,000</div>
          </td>
          <td valign="bottom" nowrap="nowrap" class="cftfncell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">&#160;</td>
        </tr>
        <tr>
          <td valign="bottom" rowspan="2" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="font-weight: bold;">Audit Committee</div>
          </td>
          <td valign="bottom" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">Chair</div>
          </td>
          <td valign="bottom" class="cftguttercell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td valign="bottom" class="cftnumcell" colspan="1" style="vertical-align: bottom; text-align: right; width: 48%; border-top: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">$20,000</div>
          </td>
          <td valign="bottom" nowrap="nowrap" class="cftfncell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">&#160;</td>
        </tr>
        <tr>
          <td valign="bottom" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">Member (Non- Chair)</div>
          </td>
          <td valign="bottom" class="cftguttercell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td valign="bottom" class="cftnumcell" colspan="1" style="vertical-align: bottom; text-align: right; width: 48%; border-top: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">$10,000</div>
          </td>
          <td valign="bottom" nowrap="nowrap" class="cftfncell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">&#160;</td>
        </tr>
        <tr>
          <td valign="bottom" rowspan="2" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="font-weight: bold;">Compensation Committee</div>
          </td>
          <td valign="bottom" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">Chair</div>
          </td>
          <td valign="bottom" class="cftguttercell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td valign="bottom" class="cftnumcell" colspan="1" style="vertical-align: bottom; text-align: right; width: 48%; border-top: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">$15,000</div>
          </td>
          <td valign="bottom" nowrap="nowrap" class="cftfncell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">&#160;</td>
        </tr>
        <tr>
          <td valign="bottom" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">Member (Non- Chair)</div>
          </td>
          <td valign="bottom" class="cftguttercell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td valign="bottom" class="cftnumcell" colspan="1" style="vertical-align: bottom; text-align: right; width: 48%; border-top: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">$7,500</div>
          </td>
          <td valign="bottom" nowrap="nowrap" class="cftfncell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">&#160;</td>
        </tr>
        <tr>
          <td valign="bottom" rowspan="2" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="font-weight: bold;">Nominating and Corporate Governance Committee</div>
          </td>
          <td valign="bottom" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">Chair</div>
          </td>
          <td valign="bottom" class="cftguttercell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td valign="bottom" class="cftnumcell" colspan="1" style="vertical-align: bottom; text-align: right; width: 48%; border-top: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">$10,000</div>
          </td>
          <td valign="bottom" nowrap="nowrap" class="cftfncell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">&#160;</td>
        </tr>
        <tr>
          <td valign="bottom" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">Member (Non- Chair)</div>
          </td>
          <td valign="bottom" class="cftguttercell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td valign="bottom" class="cftnumcell" colspan="1" style="vertical-align: bottom; text-align: right; width: 48%; border-top: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">$5,000</div>
          </td>
          <td valign="bottom" nowrap="nowrap" class="cftfncell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">&#160;</td>
        </tr>
        <tr>
          <td valign="bottom" rowspan="2" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify; font-weight: bold;">Research and Development Committee</div>
          </td>
          <td valign="bottom" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">Chair/Co-Chair</div>
          </td>
          <td valign="bottom" class="cftguttercell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td valign="bottom" class="cftnumcell" colspan="1" style="vertical-align: bottom; text-align: right; width: 48%; border-top: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">$15,000</div>
          </td>
          <td valign="bottom" nowrap="nowrap" class="cftfncell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">&#160;</td>
        </tr>
        <tr>
          <td valign="bottom" style="vertical-align: top; width: 25.24%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">Member (Non- Chair/Co-Chair)</div>
          </td>
          <td valign="bottom" class="cftguttercell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td valign="bottom" class="cftnumcell" colspan="1" style="vertical-align: bottom; text-align: right; width: 48%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center;">$7,500</div>
          </td>
          <td valign="bottom" nowrap="nowrap" class="cftfncell" colspan="1" style="vertical-align: bottom; width: 0.97%; padding-bottom: 2px; border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
        </tr>

    </table>
    <div>&#160;</div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; text-align: left; color: rgb(0, 0, 0);" class="DSPFListTable" id="zd43f62416c974fe18e2c43dc3061b13d">

        <tr>
          <td style="width: 36pt; vertical-align: top;">*</td>
          <td style="width: auto; vertical-align: top; text-align: justify;">
            <div>The chair of the Board is eligible to receive a retainer for service as the chair and an additional retainer for service as a member of the Board. The chair/co-chair of each Committee is eligible to receive a retainer for service as the
              chair/co-chair, but not an additional retainer for service as a member of the Committee.</div>
          </td>
        </tr>

    </table>
    <div>&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;">The annual retainers will be paid on the last day of the quarter and partial service for that quarter will receive <font style="font-style: italic;">pro rata </font>treatment.</div>
    <div>&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-weight: bold;">(b)</font>&#160;&#160;&#160; <font style="font-weight: bold;">Expenses. </font>Each Non-Employee Director will be eligible for reimbursement from the Company for all reasonable
      out-of-pocket expenses incurred by the Non-Employee Director in connection with his or her attendance at Board and Committee meetings.</div>
    <div>&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;">To the extent that any taxable reimbursements are provided to a Non-Employee Director, they will be provided in accordance with Section 409A of the Internal Revenue Code of 1986, as amended, and the
      Treasury Regulations and other guidance thereunder and any state law of similar effect, including, but not limited to, the following provisions: (i) the amount of any such expenses eligible for reimbursement during the Non-Employee Director&#8217;s taxable
      year may not affect the expenses eligible for reimbursement in any other taxable year; (ii) the reimbursement of an eligible expense must be made no later than the last day of the Non-Employee Director&#8217;s taxable year that immediately follows the
      taxable year in which the expense was incurred; and (iii) the right to any reimbursement may not be subject to liquidation or exchange for another benefit.</div>
    <div style="text-align: justify; text-indent: 35.95pt; margin-right: 5.75pt; margin-left: 5pt;"> <br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" class="BRPFPageBreakArea">
      <div style="page-break-after: always;" class="BRPFPageBreak">
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    </div>
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        <tr>
          <td style="width: 36pt; vertical-align: top; font-weight: bold;">3.</td>
          <td style="width: auto; vertical-align: top;">
            <div style="font-variant: small-caps; font-weight: bold;">Equity Compensation.</div>
          </td>
        </tr>

    </table>
    <div>&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;">The options described in this Policy will be granted under the Plan and will be subject to the terms and conditions of (i) this Policy, (ii) the Plan and (iii) the form of Option Agreement approved
      by the Board for the grant of options to Non-Employee Directors under the Plan.</div>
    <div>&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-weight: bold;">(a)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-weight: bold;">Initial Grants. </font>Each person who first becomes a Non-Employee Director, whether through election by the
      stockholders of the Company or appointment by the Board to fill a vacancy, will be granted a Nonstatutory Stock Option to purchase a number of shares of Common Stock having an Option Value of 200% of the Option Value of the most recent Annual
      Director Option granted pursuant to Section 3(b)(i) below (an &#8220;<font style="font-weight: bold; font-style: italic;">Initial Option</font>&#8221;), which grant will be made on or about the date of his or her initial election or appointment to be a
      Non-Employee Director.</div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-weight: bold;">(b)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-weight: bold;">Annual Grants. </font>On or about the date of each annual meeting of the Company&#8217;s stockholders:</div>
    <div style="text-align: justify;">&#160;</div>
    <div style="text-align: justify; text-indent: 72pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; each person who is then a Non-Employee Director and will be continuing as a Non- Employee Director following the date of such annual meeting (other than any Non-Employee Director
      receiving an Initial Option on the date of such annual meeting or who has received an Initial Option within the same calendar year as such annual meeting) will be granted a Nonstatutory Stock Option to purchase a number of shares of Common Stock
      having an Option Value represented by the number of shares approximately equal to the median annual equity award (as a percent of company) granted to non-employee directors of the Company&#8217;s Peer Group (as defined in the charter of the Compensation
      Committee of the Board) as applied to the number of shares of the Company&#8217;s stock outstanding as of the date of grant (provided that such Option Value should not exceed the applicable Compensation Limit minus the maximum annual cash compensation
      (excluding, if applicable, the Board Chair retainer) to which any director is expected to be entitled during the calendar year pursuant to Section 2(a) above) (an &#8220;<font style="font-weight: bold; font-style: italic;">Annual Director Option</font>&#8221;);
      and</div>
    <div style="text-align: justify;">&#160; </div>
    <div style="text-align: justify; text-indent: 72pt;">(ii)&#160; &#160;&#160; &#160;&#160; the Chair of the Board will be granted an additional Nonstatutory Stock Option to purchase a number of shares of Common Stock having an Option Value equal to approximately 30% of the
      Option Value of the Annual Director Option (the &#8220;<font style="font-weight: bold; font-style: italic;">Annual Chair Option</font>&#8221;).</div>
    <div>&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-weight: bold;">(c)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <font style="font-weight: bold;">Option Value. </font>The &#8220;<font style="font-weight: bold; font-style: italic;">Option Value</font>&#8221; of a stock
      option to be granted under this policy will be determined using the same method the Company uses to calculate the grant date fair value of stock options in its financial statements and shall be calculated on the date of grant.</div>
    <div style="text-indent: 36pt;">&#160;</div>
    <div>
      <div style="font-weight: bold; text-indent: 36pt;">(d)&#160;&#160;&#160; &#160; &#160; &#160; Terms of Options.</div>
    </div>
    <div style="text-align: justify;">&#160;<font style="font-weight: bold;"></font></div>
    <div style="text-align: justify; text-indent: 72pt;"><font style="font-weight: bold;">(i)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Exercise Price</u>. The exercise price of each Initial Option, Annual Director Option and Annual Chair Option will be equal to 100% of the
      Fair Market Value of the Common Stock subject to such option (as determined in accordance with the Plan) on the date such option is granted.</div>
    <div style="text-align: justify; text-indent: 72pt;">&#160;<font style="font-weight: bold;"></font></div>
    <div style="text-align: justify; text-indent: 72pt;"><font style="font-weight: bold;">(ii)</font>&#160; &#160; &#160; &#160;&#160; <u>Vesting</u>.&#160; Each Initial Option, Annual Director Option and Annual Chair Option will vest and become exercisable as follows:</div>
    <div>&#160;</div>
    <div style="text-indent: 108pt;"><font style="font-weight: bold;">(A)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each Initial Option will vest and become exercisable in equal annual installments on each of the first three anniversaries of the date of grant of such option,
      provided that the Non-Employee Director has not had a Termination of Service prior to each such date; <font style="font-style: italic;">provided, however</font>, that the vesting shall accelerate, and the Initial Option shall become fully vested and
      exercisable, upon the consummation of a Change in Control. </div>
    <div style="text-align: justify; text-indent: 107.95pt; margin-right: 5.65pt; margin-left: 5pt;"> <br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" class="BRPFPageBreakArea">
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    </div>
    <div style="text-indent: 108pt;"> <font style="font-weight: bold;">(B)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each Annual Director Option and Annual Chair Option will vest and become exercisable on the earlier of (i) the date of the next annual meeting of the Company&#8217;s
      stockholders, or (ii) the first anniversary of the date of grant of such option, provided that the Non-Employee Director has not had a Termination of Service prior to such date; <font style="font-style: italic;">provided, however, </font>that the
      vesting shall accelerate, and each Annual Option shall become fully vested and exercisable, upon the consummation of a Change in Control. </div>
    <div>
      <div><br>
      </div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-weight: bold;">THIS SUPPLEMENT SHOULD BE READ IN CONJUNCTION WITH THE PROXY STATEMENT. EXCEPT AS SPECIFICALLY SUPPLEMENTED BY THE INFORMATION CONTAINED HEREIN, THIS SUPPLEMENT DOES NOT MODIFY
        ANY OTHER INFORMATION SET FORTH IN THE PROXY STATEMENT.</div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-weight: bold;"> <br>
      </div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-weight: bold;"> <br>
      </div>
    </div>
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