Exhibit 10.7


 


AKOUSTIS
TECHNOLOGIES, INC.


2016
STOCK INCENTIVE PLAN


 


Director
Nonqualified Stock Option Agreement


 


THIS
AGREEMENT (together with Schedule A attached hereto, the “Agreement”), effective as of the date specified
as the “Grant Date” on Schedule A attached hereto, is between AKOUSTIS TECHNOLOGIES, INC., a Delaware
corporation (the “Company”), and a Director of the Company or an Affiliate, as identified on Schedule A
attached hereto (the “Participant”).


 


R E C I T A L S :


 


In
furtherance of the purposes of the Akoustis Technologies, Inc. 2016 Stock Incentive Plan, as it may be hereafter amended and/or
restated (the “Plan”), and in consideration of the services of the Participant and such other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Participant hereby agree as follows:


 


1.                 
Incorporation of Plan. The rights and
duties of the Company and the Participant under this Agreement shall in all respects be subject to and governed by the provisions
of the Plan, a copy of which has been made available to the Participant and the terms of which are incorporated herein by reference.
In the event of any conflict between the provisions in this Agreement and those of the Plan, the provisions of the Plan shall
govern, unless the Administrator determines otherwise. The terms of this Agreement shall not be deemed to be in conflict or inconsistent
with the Plan merely because they impose greater or additional restrictions, obligations or duties, or if this Agreement provides
that the Agreement terms apply notwithstanding the provisions to the contrary in the Plan. Unless otherwise defined herein, capitalized
terms in this Agreement shall have the same definitions as set forth in the Plan.


 


2.                 
Grant of Option; Term of Option. The Company
hereby grants to the Participant pursuant to the Plan, as a matter of separate inducement and agreement in connection with his
or her service to the Company, and not in lieu of any salary or other compensation for his or her services, the right and option
(the “Option”) to purchase all or any part of such aggregate number of shares (the “Shares”)
of common stock of the Company, $0.001 par value (the “Common Stock”), at a purchase price (the “Exercise
Price”) as specified on Schedule A, attached hereto, and subject to such other terms and conditions as may be
stated herein or in the Plan or on Schedule A. The Participant expressly acknowledges that the terms of Schedule A shall
be incorporated herein by reference and shall constitute part of this Agreement. The Company and the Participant further acknowledge
and agree that the signatures of the Company and the Participant on the Grant Notice contained in Schedule A shall constitute
their acceptance of all of the terms of the Plan and this Agreement and their agreement to be bound by the terms of the Plan and
this Agreement. The Option shall be designated as a Nonqualified Option. Except as otherwise provided in the Plan or this
Agreement, this Option shall expire if not exercised in full by the Expiration Date specified on Schedule A.


 


3.                 
Exercise of Option.


 


(a)               
Subject to the terms of the Plan and this Agreement, the Option shall vest and become exercisable on the date or dates, and subject
to such conditions, as are set forth on Schedule A.


 






     


     


    

 


(b)              
 To the extent that the Option is exercisable but is not exercised, the Option shall accumulate and be exercisable by the Participant
in whole or in part at any time prior to expiration of the Option, subject to the terms of the Plan and this Agreement. The
Participant expressly acknowledges that the Option shall vest and be exercisable only upon such terms and conditions as are provided
in this Agreement (including the terms set forth in Schedule A) and the Plan. Upon the exercise of the Option in whole or
in part, payment of the Exercise Price in accordance with the provisions of the Plan and this Agreement and satisfaction of such
other conditions as may be established by the Administrator, the Company shall, as soon thereafter as practicable, deliver to
the Participant a certificate or certificates (or, in the case of uncertificated shares, other written notice of ownership in
accordance with Applicable Law) for the Shares purchased. Payment of the Exercise Price may be made in the form of cash or cash
equivalent; and, except where prohibited by the Administrator or Applicable Law (and subject to such terms and conditions as may
be established by the Administrator), payment may also be made (i) by delivery (by either actual delivery or attestation) of shares
of Common Stock owned by the Participant for such time period, if any, as may be determined by the Administrator; (ii) by shares
of Common Stock withheld upon exercise; (iii) so long as a Public Market exists at the time of exercise of the Option, by delivery
of written notice of exercise to the Company and delivery to a broker of written notice of exercise and irrevocable instructions
to promptly deliver to the Company the amount of sale or loan proceeds to pay the Exercise Price; (iv) by such other payment methods
as may be approved by the Administrator and which are acceptable under Applicable Law; and/or (v) by any combination of the foregoing
methods. Shares delivered or withheld in payment on the exercise of the Option shall be valued at their Fair Market Value on the
date of exercise, as determined by the Administrator or its designee in accordance with the terms of the Plan.


 


4.                 
Termination of Service. Unless otherwise
provided in this Agreement or the Plan, any portion of the Option that remains unvested as of the Participant’s Termination
Date shall terminate immediately. Notwithstanding the foregoing, if the service of the Participant shall be terminated for any
reason (excluding termination for Cause) within the thirty (30) days prior to the date that the Option would have vested and all
or any part of the Option has not vested or been earned pursuant to the terms of the Plan and this Agreement, the Option shall
not terminate but it shall continue to vest (to the extent permitted under Code Section 409A) as provided in Schedule A
attached hereto notwithstanding the termination of service.


 


The
service relationship of the Participant shall be treated as continuing intact for any period that the Participant is on military
or sick leave or other bona fide leave of absence, provided that the period of such leave does not exceed three months, or, if
longer, as long as the Participant’s right to service is guaranteed either by statute or by contract. The service relationship
of the Participant shall also be treated as continuing intact while the Participant is not in active service because of Disability.
The Administrator shall have the sole authority to determine whether the Participant is disabled under the Plan and, if applicable,
the Participant’s Termination Date.


 


To
the extent the Option is vested at the time of the Participant’s termination, the Option shall terminate, to the extent
not previously exercised, upon the occurrence of the first of the following events:


 


(a)               
The Expiration Date.


 


(b)              
 If the Participant’s termination is due to Cause, the Termination Date.


 


(c)               
If the Participant’s termination is due to death, the close of the period of twelve (12) months from the Termination Date.
The Option shall be exercisable by such person or persons as shall have acquired the right to exercise the Option by will or the
laws of intestate succession.


 


(d)              
 If the Participant’s termination is due to Disability, the close of the period of twelve (12) months from the Termination
Date.


 


(e)               
If the Participant’s termination is due to a reason other than Cause, death or Disability, the close of the period of 90
days next succeeding the Termination Date.


 






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5.                 
No Right of Continued Employment or Service;
Forfeiture of Option; No Right to Future Awards. Neither the Plan, this Agreement, the grant of the Option, nor any other
action related to the Plan shall confer upon the Participant any right to continue in the employ or service of the Company or
an Affiliate as an Employee, Director or Consultant, as the case may be, or interfere in any way with the right of the Company
or an Affiliate to terminate the Participant’s employment or service at any time. Except as otherwise provided in the Plan
or this Agreement, all rights of the Participant with respect to the Option shall terminate upon termination of the Participant’s
service. The Participant acknowledges and agrees that the Company has no obligation to advise the participant of the expiration
of the Option. The grant of the Option does not create any obligation to grant further awards. For purposes of this Agreement,
references to “employment” or similar terms shall include references to service unless the Administrator determines
otherwise.


 


6.                 
Effect of Change of Control. Notwithstanding
the provisions of Section 3, in the event of a Change of Control, the Option shall, to the extent not then vested or previously
forfeited or cancelled, become vested if and to the extent provided below:


 


(a)               
To the extent that the successor or surviving company in the Change of Control event does not assume or substitute for the Option
(or in which the Company is the ultimate parent corporation and does not continue the Option) on substantially similar terms or
with substantially equivalent economic benefits (as determined by the Administrator) as an Option outstanding under the Plan immediately
prior to the Change of Control event, the Option shall become fully vested and exercisable as of the date of the Change of Control.


 


(b)              
Further, in the event that the Option is substituted, assumed or continued as provided in Section 6(a) herein, the Option shall
nonetheless become vested and exercisable in full if the Participant’s service is terminated by the Company or an Affiliate
(or any successor thereto) not for Cause or by the Participant for Good Reason within two years after the effective date of a
Change of Control. The Administrator shall have sole discretion to determine the basis for the Participant’s termination
of service, including whether such termination is for Good Reason.


 


(c)                Notwithstanding Sections 6(a) and (b), in the event that the Participant has entered into an agreement, plan or policy as of the
effective date of the Plan, the Participant shall be entitled to the greater of the benefits provided upon a change of control
of the Company under the Plan or the respective agreement or other arrangement as in effect on the Plan effective date, and such
agreement or arrangement shall not be construed to reduce in any way the benefits otherwise provided upon a Change of Control.


 


7.                 
Nontransferability of Option. This Option
shall not be transferable (including by sale, assignment, pledge or hypothecation) other than by will or the laws of intestate
succession, except for transfers if and to the extent permitted by the Administrator in a manner consistent with the registration
provisions of the Securities Act of 1933, as amended (the “Securities Act”). Except as may be permitted by
the preceding sentences, this Option shall be exercisable during the Participant’s lifetime only by him or her or by his
or her guardian or legal representative. The designation of a beneficiary in accordance with the Plan does not constitute a transfer.


 


8.                 
Superseding Agreement; Binding Effect.
This Agreement supersedes any statements, representations or agreements of the Company with respect to the grant of the Option,
any other equity-based awards or any related rights, and the Participant hereby waives any rights or claims related to any such
statements, representations or agreements. This Agreement does not supersede or amend any existing confidentiality agreement,
non-solicitation agreement, non-competition agreement, employment agreement or any other similar agreement between the Participant
and the Company, including, but not limited to, any restrictive covenants contained in such agreements. This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their respective executors, administrators, heirs, successors
and assigns.


 






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9.                 
Governing Law. This Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware, without regard to the conflict of laws provisions
of any state, and in accordance with applicable federal laws of the United States.


 


10.             
  Amendment and Termination; Waiver. This
Agreement may be amended, altered, suspended and/or terminated as provided in the Plan. Without limiting the effect of the foregoing,
(a) the Administrator shall have unilateral authority to amend the Plan and this Agreement (without Participant consent) to the
extent necessary to comply with Applicable Law or changes to Applicable Law (including but in no way limited to Code Section 409A,
Code Section 422 and federal securities laws), and (b) the Administrator also shall have the unilateral authority to make adjustments
to the terms and conditions of the Option in recognition of unusual or nonrecurring events affecting the Company or any Affiliate,
or the financial statements of the Company or any Affiliate, or of changes in Applicable Law, or accounting principles, if the
Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan or necessary or appropriate to comply with applicable accounting
principles or Applicable Law. The waiver by the Company of a breach of any provision of this Agreement by the Participant shall
not operate or be construed as a waiver of any subsequent breach by the Participant.


 


11.             
  No Rights as Stockholders. The Participant
and his or her legal representatives, legatees, distributees or transferees shall not be deemed to be the holder of any Shares
subject to the Option and shall not have any rights of a stockholder unless and until certificates for such Shares have been issued
and delivered to him or her or them (or, in the case of uncertificated shares, other written evidence of ownership in accordance
with Applicable Law shall have been provided).


 


12.               
Withholding; Tax Matters.


 


(a)               
The Participant acknowledges that the Company shall require the Participant to pay the Company in cash the amount of any tax or
other amount required by any governmental authority to be withheld and paid over by the Company to such authority for the account
of the Participant, and the Participant agrees, as a condition to the grant of the Option and delivery of the Shares or any other
benefit, to satisfy such obligations. Notwithstanding the foregoing, the Administrator may in its discretion establish procedures
to require or permit the Participant to satisfy such obligations in whole or in part, and any local, state, federal, foreign or
other income tax obligation relating to the Option, by delivery to the Company of shares of Common Stock held by the Participant
(which are fully vested and not subject to any pledge or other security interest) and/or by the Company withholding shares of
Common Stock from the Shares to which the Participant is otherwise entitled. The number of Shares to be withheld shall have a
Fair Market Value as of the date that the amount of tax to be withheld is determined as nearly equal as possible to, but not exceeding
(unless otherwise permitted by the Administrator in a manner in accordance with Applicable Law and applicable accounting principles),
the amount of such obligations being satisfied. Such withholding obligations shall be subject to such terms and procedures as
may be established by the Administrator.


 


(b)               
The Participant acknowledges that he or she is solely responsible and liable for the satisfaction of all taxes and penalties that
may arise in connection with the Option (including but not limited to any taxes arising under Code Section 409A), and the Company
shall not have any obligation to indemnify or otherwise hold the Participant harmless from any or all such taxes. The Participant
further acknowledges that the Company has made no warranties or representations to the Participant with respect to the tax consequences
(including, but not limited to, income tax consequences) related to the transactions contemplated by this Agreement, and the Participant
is in no manner relying on the Company or its representatives for an assessment of such tax consequences. The Participant acknowledges
that there may be adverse tax consequences upon the grant of the Option and/or the acquisition or disposition of the Shares or
any other benefit related to the Option and that the Participant has been advised that he or she should consult with his or her
own attorney, accountant and/or tax advisor regarding the decision to enter into this Agreement and the consequences thereof.
The Participant also acknowledges that the Company has no responsibility to take or refrain from taking any actions in order to
achieve a certain tax result for the Participant.


 






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13.               
Administration. The authority to construe
and interpret this Agreement and the Plan, and to administer all aspects of the Plan, shall be vested in the Administrator, and
the Administrator shall have all powers with respect to this Agreement as are provided in the Plan, including, but not limited
to, the sole authority to determine whether and to what degree the Option has vested. Any interpretation of this Agreement by
the Administrator and any decision made by it with respect to this Agreement are final and binding.


 


14.               
Notices. Except as may be otherwise provided
by the Plan or determined by the Administrator, any written notices provided for in this Agreement or the Plan shall be in writing
and shall be deemed sufficiently given if either hand delivered or if sent by fax or overnight courier, or by postage paid first
class mail. Notices sent by mail shall be deemed received three business days after mailed but in no event later than the date
of actual receipt. Notices shall be directed, if to the Participant, at the Participant’s address indicated on Schedule
A (or such other address as may be designated by the Participant in a manner acceptable to the Administrator), or, if to the
Company, at the Company’s principal office, attention Chief Financial Officer, Akoustis Technologies, Inc. Notice may also
be provided by electronic submission, if and to the extent permitted by the Administrator.


 


15.                Severability. If any provision of this
Agreement is held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the
Agreement (which shall be construed or deemed amended to conform to Applicable Law), and the Agreement shall be construed and
enforced as if the illegal or invalid provision had not been included.


 


16.               
Restrictions on Option and Shares. The
Company may impose such restrictions on the Option and the Shares or other benefits underlying the Option as it may deem advisable,
including without limitation restrictions under the federal securities laws, the requirements of any stock exchange or similar
organization and any blue sky, state or foreign securities laws or other laws applicable to such Option or Shares. Notwithstanding
any other provision in the Plan or this Agreement to the contrary, the Company shall not be obligated to issue, deliver or transfer
shares of Common Stock, to make any other distribution of benefits, or to take any other action, unless such delivery, distribution
or action is in compliance with Applicable Law (including but not limited to the requirements of the Securities Act). The Company
is under no obligation to register the Shares with the Securities and Exchange Commission or to effect compliance with the exemption,
registration, qualification or listing requirements of any state or foreign securities laws, stock exchange or similar organization,
and the Company shall have no liability for any inability or failure to do so. The Company may cause a restrictive legend or legends
to be placed on any certificate for Shares issued pursuant to the exercise of the Option in such form as may be prescribed from
time to time by Applicable Law or as may be advised by legal counsel.


 


17.               
Rules of Construction. Headings are given
to the sections of this Agreement solely as a convenience to facilitate reference. The reference to any statute, regulation or
other provision of law shall (unless the Administrator determines otherwise) be construed to refer to any amendment to or successor
of such provision of law.


 


18.               
Right of Offset. Notwithstanding any other
provision of the Plan or this Agreement, the Company may at any time (subject to any Code Section 409A considerations), reduce
the amount of any payment or benefit otherwise payable to or on behalf of the Participant by the amount of any obligation of the
Participant to or on behalf of the Company or an Affiliate that is or becomes due and payable, and, by entering into this Agreement,
the Participant shall be deemed to have consented to such reduction.


 


19.               
Effect of Certain Changes in Status. Notwithstanding
the other terms of the Plan or this Agreement, the Administrator has discretion to determine (taking into account any Code Section
409A considerations), at the time of grant of the Option or at any time thereafter, the effect, if any, on the Option (including
but not limited to modifying the vesting and/or exercisability of the Option) if the Participant’s status as an Director
changes or if other similar changes in the nature or scope of the Participant’s service occur.


 






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20.               
Compliance with Recoupment, Ownership and
Other Policies or Agreements. Without limiting the terms of the Plan and as a condition to receiving this Option or any benefit
thereunder, the Participant agrees that he or she shall abide by all provisions of any equity retention policy, stock ownership
guidelines, compensation recovery policy and/or other policies adopted by the Company or an Affiliate, each as in effect from
time to time and to the extent applicable the Participant. In addition, the Participant shall be subject to such compensation
recovery, recoupment, forfeiture or other similar provisions as may apply to him or her under Applicable Law.


 


21.               
Counterparts; Further Instruments. This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. The parties hereto agree to execute such further instruments and to take such further
action as may be reasonably necessary to carry out the purposes and intent of this Agreement.


 


[Signatures
follow on Schedule A/Grant Notice.]


 




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AKOUSTIS
TECHNOLOGIES, INC. 


2016
STOCK INCENTIVE PLAN 


 


Director
Nonqualified Stock Option Agreement


 


Schedule
A/Grant Notice


 


1.       Pursuant
to the terms and conditions of the Company’s 2016 Stock Incentive Plan, as it may be hereafter amended (the “Plan”),
you (the “Participant”) have been granted an option (the “Option”) to purchase ________
shares (the “Shares”) of the Company’s Common Stock as outlined below.


 


	Name of Participant:	 
	 	 
	Address:	 
	 	 
	 	 
	 	 
	Grant Date:	 	, 20	 
	 	 	 	 
	Number of Shares Subject to Option:	 	 	 
	 	 	 	 
	Exercise Price:	$	 	 
	 	 	 	 
	Type of Option:	☑ Nonqualified Option	 	 
	 	 	 	 
	Expiration Date (Last day of Option Period):	 	, 20	 	 



 





	Vesting Schedule/Conditions:	 	Option shall vest on the first anniversary of the Grant Date, subject to continued service as a Director through such date (except as provided in Section 4 of the Director Nonqualified Stock Option Agreement)







 


2.       By
my signature below, I, the Participant, hereby acknowledge receipt of this Grant Notice and the Option Agreement (the “Agreement”)
dated __________ ___, 20__, between the Participant and Akoustis Technologies, Inc. (the “Company”) which is
attached to this Grant Notice. I understand that the Grant Notice and other provisions of Schedule A herein are incorporated
by reference into the Agreement and constitute a part of the Agreement. By my signature below, I further agree to be bound
by the terms of the Plan and the Agreement, including but not limited to the terms of this Grant Notice and the other provisions
of Schedule A contained herein. The Company reserves the right to treat the Option and the Agreement as cancelled, void and of
no effect if the Participant fails to return a signed copy of the Grant Notice within 30 days of grant date stated above.


 


	Signature:	 	 	Date:	 
	 	 	 	 	 
	 	Participant	 	 	 
	 	 	 	Agreed to by:


 


	 	AKOUSTIS TECHNOLOGIES, INC.
	 	 
	 	 By:	 
	 	 	[Name]
[Title]



 





	Attest:	 
	 	 
	[Name]

[Title]	 



Note: If there are any discrepancies in the name or address shown above, please make the appropriate corrections on this form
and return to Akoustis Technologies, Inc., Attention Chief Financial Officer. Please retain a copy of the Agreement, including
a signed copy of this Grant Notice, for your files.


 



    Schedule A-1