Document:

Blueprint

 

Exhibit
10.20

 

 

AEHR TEST SYSTEMS

2016 EQUITY INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT

NOTICE OF GRANT OF RESTRICTED STOCK UNITS

 

Unless
otherwise defined herein, the terms defined in the 2016 Equity
Incentive Plan (the “Plan”) shall have the same defined
meanings in this Restricted Stock Unit Award Agreement, including
the Notice of Grant of Restricted Stock Units (the “Notice of
Grant”), the Terms and Conditions of Restricted Stock Unit
Grant, and any appendices and exhibits attached thereto (all
together, the “Award Agreement”).

 

	

Name
(“Participant):

	

«Name»

	
 

	
 

	

Address:

	

«Address»

 

The
undersigned Participant has been granted the right to receive an
Award of Restricted Stock Units, subject to the terms and
conditions of the Plan and this Award Agreement, as
follows:

 

	

Date of
Grant:

	

«GrantDate»

	
 

	
 

	

Vesting
Commencement Date:

	

«VCD»

	
 

	
 

	

Number
of Restricted Stock Units:

	

«Shares»

 

Vesting Schedule:

 

Subject
to any acceleration provisions contained in the Plan or set forth
below, the Restricted Stock Units will vest in accordance with the
following schedule:

 

[Insert
Vesting Schedule] 

 

      In
the event Participant ceases to be a Service Provider for any or no
reason before Participant vests in the Restricted Stock Units, the
Restricted Stock Units and Participant’s right to acquire any
Shares hereunder will immediately terminate.

 

              Participant
acknowledges receipt of a copy of the Plan and represents that he
or she is familiar with the terms and provisions thereof, and
hereby accepts this Award Agreement subject to all of the terms and
provisions thereof. Participant has reviewed the Plan and this
Award Agreement in their entirety, has had an opportunity to obtain
the advice of counsel prior to executing this Award Agreement and
fully understands all provisions of this Award Agreement.
Participant hereby agrees to accept as binding, conclusive and
final all decisions or interpretations of the Administrator upon
any questions arising under the Plan or this Award Agreement.
Participant further agrees to notify the Company upon any change in
the residence address indicated below.

 

 

	

PARTICIPANT

	
 

	

AEHR
TEST SYSTEMS

	
 

	
 

	
 

	
 

	
 

	
 

	

Signature

	
 

	

By

	
 

	
 

	
 

	
 

	
 

	
 

	

Print Name

	
 

	

Print
Name

	
 

	
 

	
 

	

Address:

	
 

	

Title

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

 

 

AEHR TEST SYSTEMS

2016 EQUITY INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

TERMS AND CONDITIONS OF RESTRICTED STOCK UNIT GRANT

 

 

1.
Grant of Restricted Stock
Units. The Company hereby grants to the individual (the
“Participant”) named in the Notice of Grant of
Restricted Stock Units of this Award Agreement (the “Notice
of Grant”) under the Plan an Award of Restricted Stock Units,
subject to all of the terms and conditions in this Award Agreement
and the Plan, which is incorporated herein by reference. Subject to
Section 21(c) of the Plan, in the event of a conflict between the
terms and conditions of the Plan and this Award Agreement, the
terms and conditions of the Plan shall prevail.

 

2.
Company’s Obligation
to Pay. Each Restricted Stock Unit represents the right to
receive a Share on the date it vests. Unless and until the
Restricted Stock Units will have vested in the manner set forth in
Section 3 or 4, Participant will have no right to payment of any
such Restricted Stock Units. Prior to actual payment of any vested
Restricted Stock Units, such Restricted Stock Unit will represent
an unsecured obligation of the Company, payable (if at all) only
from the general assets of the Company.

 

3. Vesting Schedule. Except as
provided in Section 4, and subject to Section 5, the Restricted
Stock Units awarded by this Award Agreement will vest in accordance
with the vesting schedule set forth in the Notice of Grant, subject
to Participant continuing to be a Service Provider through each
applicable vesting date.

 

4.
Payment after
Vesting.

 

(a)
General Rule.
Subject to Section 6, any Restricted Stock Units that vest will be
paid to Participant (or in the event of Participant’s death,
to his or her properly designated beneficiary or estate) in whole
Shares. Subject to the provisions of Section 4(b), such vested
Restricted Stock Units shall be paid in whole Shares as soon as
practicable after vesting, but in each such case within sixty (60)
days following the vesting
date. In no event will Participant be permitted, directly or
indirectly, to specify the taxable year of payment of any
Restricted Stock Units payable under this Award
Agreement.

 

(b)
Acceleration.

 

                 
(i) Discretionary
Acceleration. The Administrator, in its discretion, may
accelerate the vesting of the balance, or some lesser portion of
the balance, of the unvested Restricted Stock Units at any time,
subject to the terms of the Plan. If so accelerated, such , such
Restricted Stock Units will be considered as having vested as of
the date specified by the Administrator. If Participant is a U.S. taxpayer, the
payment of Shares vesting pursuant to this Section 4(b) shall
in all cases be paid at a time or in a manner that is exempt from,
or complies with, Section 409A. The prior sentence may be superseded in a future
agreement or amendment to this Award Agreement only by direct and specific reference to
such sentence.

 

                                                (ii)
Notwithstanding anything in the Plan or this Award Agreement
or any other agreement (whether
entered into before, on or after the Date of Grant), if the
vesting of the balance, or some lesser portion of the balance, of
the Restricted Stock Units is accelerated in connection with
Participant’s termination as a Service Provider (provided
that such termination is a “separation from service”
within the meaning of Section 409A, as determined by the
Company), other than due to Participant’s death, and if
(x) Participant is a U.S. taxpayer and a “specified
employee” within the meaning of Section 409A at the time of
such termination as a Service Provider and (y) the payment of such
accelerated Restricted Stock Units will result in the imposition of
additional tax under Section 409A if paid to Participant on or
within the six (6) month period following Participant’s
termination as a Service Provider, then the payment of such
accelerated Restricted Stock Units will not be made until the date
six (6) months and one (1) day following the date of
Participant’s termination as a Service
Provider, unless Participant
dies following his or her termination as a Service Provider, in
which case, the Restricted Stock Units will be paid in Shares to
Participant’s estate as soon as practicable following his or
her death.

 

  (c)
Section 409A. It is
the intent of this Award Agreement that it and all payments and
benefits to U.S. taxpayers hereunder be exempt from, or comply
with, the requirements of Section 409A so that none of the Restricted Stock Units
provided under this Award Agreement or Shares issuable thereunder will be
subject to the additional tax imposed under Section 409A,
and any ambiguities herein will be interpreted to be so exempt or
so comply. Each payment payable under this Award Agreement is
intended to constitute a separate payment for purposes of Treasury
Regulation Section 1.409A-2(b)(2). For purposes of this Award
Agreement, “Section 409A” means
Section

 

 

 

 

409A of
the Code, and any final Treasury
Regulations and Internal Revenue Service guidance
thereunder, as each may be amended from time to
time.

 

5.
Forfeiture Upon
Termination as a Service Provider. Notwithstanding any
contrary provision of this Award Agreement, if Participant ceases
to be a Service Provider for any or no reason, the then-unvested
Restricted Stock Units awarded by this Award Agreement will
thereupon be forfeited at no cost to the Company and Participant
will have no further rights thereunder.

 

6.
Death of
Participant. Any distribution or delivery to be made to
Participant under this Award Agreement will, if Participant is then
deceased, be made to Participant’s designated beneficiary, or
if no beneficiary survives Participant, the administrator or
executor of Participant’s estate. Any such transferee must
furnish the Company with (a) written notice of his or her status as
transferee, and (b) evidence satisfactory to the Company to
establish the validity of the transfer and compliance with any laws
or regulations pertaining to said transfer.

 

7.
Tax Consequences.
Participant has reviewed with its own tax advisors the U.S.
federal, state, local and foreign tax consequences of this
investment and the transactions contemplated by this Award
Agreement. With respect to such matters, Participant relies solely
on such advisors and not on any statements or representations of
the Company or any of its agents, written or oral. Participant
understands that Participant (and not the Company) shall be
responsible for Participant’s own tax liability that may
arise as a result of this investment or the transactions
contemplated by this Award Agreement.

 

8.
Tax
Obligations

 

(a)
Responsibility for
Taxes. Participant acknowledges that, regardless of any
action taken by the Company or, if different, Participant’s
employer (the “Employer”), the ultimate liability for
any tax and/or social insurance liability obligations and
requirements in connection with the Restricted Stock Units,
including, without limitation, (a) all federal, state, and local
taxes (including the Participant’s Federal Insurance
Contributions Act (FICA) obligation) that are required to be
withheld by the Company or the Employer or other payment of
tax-related items related to Participant’s participation in
the Plan and legally applicable to Participant, (b) the
Participant’s and, to the extent required by the Company (or
Employer), the Company’s (or Employer’s) fringe benefit
tax liability, if any, associated with the grant, vesting, or
exercise of the Restricted Stock Units or sale of Shares, and
(c) any other Company (or Employer) taxes the responsibility
for which the Participant has, or has agreed to bear, with respect
to the Restricted Stock Units (or exercise thereof or issuance of
Shares thereunder) (collectively, the “Tax
Obligations”), is and remains Participant’s
responsibility and may exceed the amount actually withheld by the
Company or the Employer. Participant further acknowledges that the
Company and/or the Employer (i) make no representations or
undertakings regarding the treatment of any Tax Obligations in
connection with any aspect of the Restricted Stock Units,
including, but not limited to, the grant, vesting or settlement of
the Restricted Stock Units, the subsequent sale of Shares acquired
pursuant to such settlement and the receipt of any dividends or
other distributions, and (ii) do not commit to and are under no
obligation to structure the terms of the grant or any aspect of the
Restricted Stock Units to reduce or eliminate Participant’s
liability for Tax Obligations or achieve any particular tax result.
Further, if Participant is subject to Tax Obligations in more than
one jurisdiction between the Date of Grant and the date of any
relevant taxable or tax withholding event, as applicable,
Participant acknowledges that the Company and/or the Employer (or
former employer, as applicable) may be required to withhold or
account for Tax Obligations in more than one jurisdiction. If
Participant fails to make satisfactory arrangements for the payment
of any required Tax Obligations hereunder at the time of the
applicable taxable event, Participant acknowledges and agrees that
the Company may refuse to issue or deliver the Shares.

 

(b)
Tax Withholding.
When Shares are issued as payment for vested Restricted Stock
Units, Participant generally will recognize immediate U.S. taxable
income if Participant is a U.S. taxpayer. If Participant is a
non-U.S. taxpayer, Participant will be subject to applicable taxes
in his or her jurisdiction. Pursuant to such procedures as the
Administrator may specify from time to time, the Company and/or
Employer shall withhold the amount required to be withheld for the
payment of Tax Obligations or other greater amount up to the
maximum statutory rate under Applicable Laws, as applicable to the
Participant, if such other greater amount would not result in
adverse financial accounting treatment, as determined by the
Company. The Administrator, in its sole discretion and pursuant to
such procedures as it may specify from time to time, may permit
Participant to satisfy such Tax Obligations, in whole or in part
(without limitation), if permissible by applicable local law, by
(a) paying cash, (b) electing to have the Company withhold
otherwise deliverable Shares having a Fair Market Value equal to
the amount of such Tax Obligations, (c) withholding the amount of
such Tax Obligations from Participant’s wages or other cash
compensation paid to Participant by the company and/or the
Employer, (d) delivering to the Company already vested and
owned Shares having a Fair Market Value equal to such Tax
Obligations, or (e) selling a sufficient number of such Shares
otherwise deliverable to Participant through such means as the
Company may determine in its sole discretion (whether through a
broker or otherwise) equal to the amount of the Tax Obligations. To
the extent determined appropriate by the Company in its discretion,
it will have the right (but not the obligation) to satisfy any Tax
Obligations by reducing the number of Shares otherwise deliverable
to Participant and, until determined otherwise by the Company, this
will be the

 

 

 

 

method
by which such Tax Obligations are satisfied. Further, if
Participant is subject to tax in more than one jurisdiction between
the Date of Grant and a date of any relevant taxable or tax
withholding event, as applicable, Participant acknowledges and
agrees that the Company and/or the Employer (and/or former
employer, as applicable) may be required to withhold or account for
tax in more than one jurisdiction. If Participant fails to make
satisfactory arrangements for the payment of such Tax Obligations
hereunder at the time any applicable Restricted Stock Units
otherwise are scheduled to vest pursuant to Sections 3 or 4,
Participant will permanently forfeit such Restricted Stock Units
and any right to receive Shares thereunder and the Restricted Stock
Units will be returned to the Company at no cost to the Company.
Participant acknowledges and agrees that the Company may refuse to
deliver the Shares if such Tax Obligations are not delivered at the
time they are due.

 

9.
Rights as
Stockholder. Neither Participant nor any person claiming
under or through Participant will have any of the rights or
privileges of a stockholder of the Company in respect of any Shares
deliverable hereunder unless and until certificates representing
such Shares (which may be in book entry form) will have been
issued, recorded on the records of the Company or its transfer
agents or registrars, and delivered to Participant (including
through electronic delivery to a brokerage account). After such
issuance, recordation and delivery, Participant will have all the
rights of a stockholder of the Company with respect to voting such
Shares and receipt of dividends and distributions on such
Shares.

 

10.
No Guarantee of Continued
Service. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE
VESTING OF THE RESTRICTED STOCK UNITS PURSUANT TO THE VESTING
SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER
AT THE WILL OF THE COMPANY (OR THE EMPLOYER) AND NOT THROUGH THE
ACT OF BEING HIRED, BEING GRANTED THIS RESTRICTED STOCK UNIT AWARD
OR ACQUIRING SHARES HEREUNDER. PARTICIPANT FURTHER ACKNOWLEDGES AND
AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER
AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN
EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE
PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND
SHALL NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR
THE RIGHT OF THE COMPANY (OR THE EMPLOYER) TO TERMINATE
PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME,
WITH OR WITHOUT CAUSE.

 

11.
Grant is Not
Transferable. Except to the limited extent provided in
Section 6, this grant and the rights and privileges conferred
hereby will not be transferred, assigned, pledged or hypothecated
in any way (whether by operation of law or otherwise) and will not
be subject to sale under execution, attachment or similar process.
Upon any attempt to transfer, assign, pledge, hypothecate or
otherwise dispose of this grant, or any right or privilege
conferred hereby, or upon any attempted sale under any execution,
attachment or similar process, this grant and the rights and
privileges conferred hereby immediately will become null and
void.

 

12.
Nature of Grant. In
accepting the grant, Participant acknowledges, understands and
agrees that:

 

(a) the
grant of the Restricted Stock Units is voluntary and occasional and
does not create any contractual or other right to receive future
grants of Restricted Stock Units, or benefits in lieu of Restricted
Stock Units, even if Restricted Stock Units have been granted in
the past;

 

(b) all
decisions with respect to future Restricted Stock Units or other
grants, if any, will be at the sole discretion of the
Company;

 

(c)
Participant is voluntarily participating in the Plan;

 

(d) the
Restricted Stock Units and the Shares subject to the Restricted
Stock Units are not intended to replace any pension rights or
compensation;

 

(e) the
Restricted Stock Units and the Shares subject to the Restricted
Stock Units, and the income and value of same, are not part of
normal or expected compensation for purposes of calculating any
severance, resignation, termination, redundancy, dismissal,
end-of-service payments, bonuses, long-service awards, pension or
retirement or welfare benefits or similar payments;

 

(f) the
future value of the underlying Shares is unknown, indeterminable
and cannot be predicted;

 

(g) for
purposes of the Restricted Stock Units, Participant’s status
as a Service Provider will be considered terminated as of the date
Participant is no longer actively providing services to the Company
or any Parent or Subsidiary (regardless of the reason for such
termination and whether or not later to be found invalid or in
breach of

 

 

 

 

employment laws in
the jurisdiction where Participant is a Service Provider or the
terms of Participant’s employment or service agreement, if
any), and unless otherwise expressly provided in this Award
Agreement (including by reference in the Notice of Grant to other
arrangements or contracts) or determined by the Administrator,
Participant’s right to vest in the Restricted Stock Units
under the Plan, if any, will terminate as of such date and will not
be extended by any notice period (e.g., Participant’s period
of service would not include any contractual notice period or any
period of “garden leave” or similar period mandated
under employment laws in the jurisdiction where Participant is a
Service Provider or the terms of Participant’s employment or
service agreement, if any, unless Participant is providing bona
fide services during such time); the Administrator shall have the
exclusive discretion to determine when Participant is no longer
actively providing services for purposes of the Restricted Stock
Units grant (including whether Participant may still be considered
to be providing services while on a leave of absence);

 

(h)
unless otherwise provided in the Plan or by the Company in its
discretion, the Restricted Stock Units and the benefits evidenced
by this Award Agreement do not create any entitlement to have the
Restricted Stock Units or any such benefits transferred to, or
assumed by, another company nor be exchanged, cashed out or
substituted for, in connection with any corporate transaction
affecting the Shares; and

 

(i) the
following provisions apply only if Participant is providing
services outside the United States:

 

(i)

the
Restricted Stock Units and the Shares subject to the Restricted
Stock Units are not part of normal or expected compensation or
salary for any purpose;

 

(ii)       

Participant
acknowledges and agrees that none of the Company, the Employer or
any Parent or Subsidiary shall be liable for any foreign
exchange rate fluctuation between Participant’s local
currency and the United States Dollar that may affect the value of
the Restricted Stock Units or of any amounts due to Participant
pursuant to the settlement of the Restricted Stock Units or the
subsequent sale of any Shares acquired upon settlement;
and

 

(iii)       

no claim or
entitlement to compensation or damages shall arise from forfeiture
of the Restricted Stock Units resulting from the termination of
Participant’s status as a Service Provider (for any reason
whatsoever whether or not later found to be invalid or in breach of
employment laws in the jurisdiction where Participant is a Service
Provider or the terms of Participant’s employment or service
agreement, if any), and in consideration of the grant of the
Restricted Stock Units to which Participant is otherwise not
entitled, Participant irrevocably agrees never to institute
any claim against the Company, any Parent or Subsidiary or the
Employer, waives his or her ability, if any, to bring any such
claim, and releases the Company, any Parent or Subsidiary and the
Employer from any such claim; if, notwithstanding the foregoing,
any such claim is allowed by a court of competent jurisdiction,
then, by participating in the Plan, Participant shall be deemed
irrevocably to have agreed not to pursue such claim and agrees to
execute any and all documents necessary to request dismissal or
withdrawal of such claim.

 

13.
No Advice Regarding
Grant. The Company is not providing any tax, legal or
financial advice, nor is the Company making any recommendations
regarding Participant’s participation in the Plan, or
Participant’s acquisition or sale of the underlying Shares.
Participant is hereby advised to consult with his or her own
personal tax, legal and financial advisors regarding his or her
participation in the Plan before taking any action related to the
Plan.

 

14. Data
Privacy. Participant hereby
explicitly and unambiguously consents to the collection, use and
transfer, in electronic or other form, of Participant’s
personal data as described in this Award Agreement and any other
Restricted Stock Unit grant materials by and among, as applicable,
the Employer, the Company and any Parent or Subsidiary for the
exclusive purpose of implementing, administering and managing
Participant’s participation in the Plan.

 

Participant understands that the Company and the Employer may hold
certain personal information about Participant, including, but not
limited to, Participant’s name, home address and telephone
number, date of birth, social insurance number or other
identification number, salary, nationality, job title, any Shares
or directorships held in the Company, details of all Restricted
Stock Units or any other entitlement to Shares awarded, canceled,
exercised, vested, unvested or outstanding in Participant’s
favor (“Data”), for the exclusive purpose of
implementing, administering and managing the Plan.

 

 

 

 

Participant understands that Data will be transferred to a stock
plan service provider as may be selected by the Company in the
future, which is assisting the Company with the implementation,
administration and management of the Plan. Participant understands
that the recipients of the Data may be located in the United States
or elsewhere, and that the recipients’ country of operation
(e.g., the United States) may have different data privacy laws and
protections than Participant’s country. Participant
understands that if he or she resides outside the United States, he
or she may request a list with the names and addresses of any
potential recipients of the Data by contacting his or her local
human resources representative. Participant authorizes the Company,
any stock plan service provider selected by the Company and any
other possible recipients which may assist the Company (presently
or in the future) with implementing, administering and managing the
Plan to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the sole purpose of implementing,
administering and managing his or her participation in the Plan.
Participant understands that Data will be held only as long as is
necessary to implement, administer and manage Participant’s
participation in the Plan. Participant understands if he or she
resides outside the United States, he or she may, at any time, view
Data, request additional information about the storage and
processing of Data, require any necessary amendments to Data or
refuse or withdraw the consents herein, in any case without cost,
by contacting in writing his or her local human resources
representative. Further, Participant understands that he or she is
providing the consents herein on a purely voluntary basis. If
Participant does not consent, or if Participant later seeks to
revoke his or her consent, his or her status as a Service Provider
and career with the Employer will not be adversely affected; the
only adverse consequence of refusing or withdrawing
Participant’s consent is that the Company would not be able
to grant Participant Restricted Stock Units or other equity awards
or administer or maintain such awards. Therefore, Participant
understands that refusing or withdrawing his or her consent may
affect Participant’s ability to participate in the Plan. For
more information on the consequences of Participant’s refusal
to consent or withdrawal of consent, Participant understands that
he or she may contact his or her local human resources
representative.

 

15.
Address for
Notices. Any notice to be given to the Company under the
terms of this Award Agreement will be addressed to the Company at
Aehr Test Systems, 400 Kato Terrace, Fremont, CA 94539, or at such
other address as the Company may hereafter designate in
writing.

 

16.
Electronic Delivery and
Acceptance. The Company may, in its sole discretion, decide
to deliver any documents related to the Restricted Stock Units awarded under the
Plan or future Restricted Stock
Units that may be awarded under the Plan by electronic means
or request Participant’s consent to participate in the Plan
by electronic means. Participant hereby consents to receive such
documents by electronic delivery and agrees to participate in the
Plan through any on-line or electronic system established and
maintained by the Company or another third party designated by the
Company.

 

17.
No Waiver. Either
party’s failure to enforce any provision or provisions of
this Agreement shall not in any way be construed as a waiver of any
such provision or provisions, nor prevent that party from
thereafter enforcing each and every other provision of this
Agreement. The rights granted both parties herein are cumulative
and shall not constitute a waiver of either party’s right to
assert all other legal remedies available to it under the
circumstances.

 

18.
Successors and
Assigns. The Company may assign any of its rights under this
Agreement to single or multiple assignees, and this Agreement shall
inure to the benefit of the successors and assigns of the Company.
Subject to the restrictions on transfer herein set forth, this
Agreement shall be binding upon Participant and his or her heirs,
executors, administrators, successors and assigns. The rights and
obligations of Participant under this Agreement may only be
assigned with the prior written consent of the
Company.

 

19.
Additional Conditions to
Issuance of Stock. If at any time the Company will
determine, in its discretion, that the listing, registration,
qualification or rule compliance of the Shares upon any securities
exchange or under any state, federal or foreign law, the tax code
and related regulations or under the rulings or regulations of the
United States Securities and Exchange Commission or any other
governmental regulatory body or the clearance, consent or approval
of the United States Securities and Exchange Commission or any
other governmental regulatory authority is necessary or desirable
as a condition to the issuance of Shares to Participant (or his or
her estate) hereunder, such issuance will not occur unless and
until such listing, registration, qualification, rule compliance,
clearance, consent or approval will have been completed, effected
or obtained free of any conditions not acceptable to the Company.
Subject to the terms of the Agreement and the Plan, the Company
shall not be required to issue any certificate or certificates for
Shares hereunder prior to the lapse of such reasonable period of
time following the date of vesting of the Restricted Stock Units as
the Administrator may establish from time to time for reasons of
administrative convenience.

 

 

 

 

20.
Language. If
Participant has received this Agreement or any other document
related to the Plan translated into a language other than English
and if the meaning of the translated version is different than the
English version, the English version will control.

 

21.
Interpretation. The
Administrator will have the power to interpret the Plan and this
Award Agreement and to adopt such rules for the administration,
interpretation and application of the Plan as are consistent
therewith and to interpret or revoke any such rules (including, but
not limited to, the determination of whether or not any Restricted
Stock Units have vested). All actions taken and all interpretations
and determinations made by the Administrator in good faith will be
final and binding upon Participant, the Company and all other
interested persons. Neither the Administrator nor any person acting
on behalf of the Administrator will be personally liable for any
action, determination or interpretation made in good faith with
respect to the Plan or this Award Agreement.

 

22.
Captions. Captions
provided herein are for convenience only and are not to serve as a
basis for interpretation or construction of this Award
Agreement.

 

23.
Modifications to the
Agreement. This Award Agreement constitutes the entire
understanding of the parties on the subjects covered. Participant
expressly warrants that he or she is not accepting this Award
Agreement in reliance on any promises, representations, or
inducements other than those contained herein. Modifications to
this Award Agreement or the Plan can be made only in an express
written contract executed by a duly authorized officer of the
Company. Notwithstanding anything to the contrary in the Plan or
this Award Agreement, the Company reserves the right to revise this
Award Agreement as it deems necessary or advisable, in its sole
discretion and without the consent of Participant, to comply with
Section 409A or to otherwise avoid imposition of any additional tax
or income recognition under Section 409A in connection to this
Award of Restricted Stock Units.

 

24.
Governing Law and
Venue. This Award Agreement will be governed by the laws of
California, without giving effect to the conflict of law principles
thereof. For purposes of litigating any dispute that arises under
the Restricted Stock Units or this Award Agreement, the parties
hereby submit to and consent to the jurisdiction of the State of
California, and agree that such litigation will be conducted in the
courts of Alameda County, California or the federal courts for the
United States for the Northern District of California, and no other
courts.

 

25.
Agreement
Severable. In the event that any provision in this Award
Agreement will be held invalid or unenforceable, such provision
will be severable from, and such invalidity or unenforceability
will not be construed to have any effect on, the remaining
provisions of this Award Agreement.

 

26.
Amendment, Suspension or
Termination of the Plan. By accepting this Award,
Participant expressly warrants that he or she has received
Restricted Stock Units under the Plan, and has received, read and
understood a description of the Plan. Participant understands that
the Plan is discretionary in nature and may be amended, suspended
or terminated by the Company at any time.

 

27.
Entire Agreement.
The Plan is incorporated herein by reference. The Plan and this
Award Agreement (including the exhibits referenced herein)
constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Company and Participant with
respect to the subject matter hereof, and may not be modified
adversely to the Participant’s interest except by means of a
writing signed by the Company and Participant.ex10-1.htm

Exhibit 10.1

 

FIRST AMENDMENT TO STANDARD MULTI-TENANT OFFICE LEASE – GROSS 

 

 

 

 

This FIRST AMENDMENT TO STANDARD MULTI-TENANT OFFICE LEASE – GROSS (“First Amendment”) dated as of AUGUST 25, 2017, is entered into by and between FERRADO BAYVIEW, LLC, a Delaware limited liability company (“Lessor”), and ACCELERIZE INC. (formerly known as Accelerize New Media, Inc., a Delaware corporation) (“Lessee”).

 

R E C I T A L S:

 

A.     Lessor and Lessee are parties to a certain STANDARD MULTI-TENANT OFFICE LEASE – GROSS dated January 8, 2014 (the “Original Lease”) which was amended by that certain Commencement Date Memorandum dated as March 21, 2014 (collectively the “Lease”) pursuant to which Lessee currently leases from Lessor those certain Premises consisting of approximately 10,396 Rentable Square Feet (“RSF”) commonly known as 20411 SW Birch, Suite #250, Newport Beach, California (collectively the “Original Premises”), and more particularly described in the original Office Lease as amended.

 

B.     Defined terms which are used in this First Amendment without definition have the meanings given to them in the Lease.

 

C.     The Lease is scheduled to expire on February 28, 2018. 

 

D.     Lessor and Lessee desire to extend the Lease Term (“Extended Lease Term”) and expand the Premises (“Expansion Premises”) upon the terms and conditions hereinafter set forth and to amend the Lease accordingly.

 

A G R E E M E N T:

 

NOW, THEREFORE, in consideration of the foregoing Recitals, the mutual covenants and agreements contained in this First Amendment and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee hereby agree as follows: 

 

1.     Size of Premises and Lease Term. Prior to the Extended Lease Term Commencement Date (March 1, 2018), Lessor and Lessee agree that the Original Premises (“Original Premises”) consist of approximately 10,396 Rentable Square Feet (RSF).

 

Effective March 1, 2018, the Original Premises (approximately 10,396 RSF) and the Expansion Premises (approximately 1,332 RSF) shall consist of approximately 11,728 Rentable Square Feet (RSF). However, if in the event Lessee and Lessor mutually agree to the delivery of the Expansion Premises prior to March 1, 2018 then the Lease Commencement Date and Rent for the Expansion Premises only shall be accelerated and adjusted accordingly. Within ten (10) business days following delivery of the Expansion Space to Lessee, Lessor and Lessee shall execute a Commencement Date Memorandum for the Expansion Premises. 

 

Effective March 1, 2018, the Lease Term for the Original Premises and the Expansion Premises shall be sixty-four (64) months, except in the event the Expansion Premises are delivered to Lessee earlier (see above). The Lease Term for the Original Premises and Expansion Premises shall terminate June 30, 2023 (unless terminated earlier per the Lease as amended).

 

This First Amendment shall not release Lessee from liability for any amounts owed or defaults which exist under the Lease as amended which occur prior to the Extended Lease Term Commencement Date(s) herein.

 

2.     Base Rent. Prior to the Extended Lease Term Commencement Date(s), Lessee shall continue to pay the Base Rent for the Original Premises in accordance with the terms of the Lease as amended. Commencing March 1, 2018 (or earlier in accordance with Paragraph 1 above regarding the Expansion Premises), the Base Rent payable by Lessee to Lessor under the terms of the Lease shall be increased by the amounts set forth in the following schedule based on 11,728 RSF:

 

	
Months of Term or Period
	
Rate per Rentable

Square Foot per Month
	
Monthly Base Rent

	
03/01/2018 – 02/28/2019
	
$3.30
	
$38,702.40

	
03/01/2019 – 02/29/2020
	
$3.40
	
$39,875.20

	
03/01/2020 – 02/28/2021
	
$3.50
	
$41,048.00

	
03/01/2021 – 02/28/2022
	
$3.60
	
$42,220.80

	
03/01/2022 – 02/28/2023
	
$3.70
	
$43,393.60

	
03/01/2023 – 06/30/2023
	
$3.80
	
$44,566.40

 

 

 

 

 

As long as Lessee is not in default under the Lease as amended beyond any notice and applicable cure period, Lessee shall be entitled to an abatement of Base Rent for the first four (4) months of the Extended Lease Term for the Original Premises (March, April, May and June 2018) and the first four (4) months for the Expansion Premises Lease Term (March, April, May and June 2018 subject to Paragraph 1 above regarding the Lease Commencement Date for the Expansion Premises only) (the “Abated Base Rent”). Only Base Rent shall be abated and all other additional rent and other costs and charges specified in the Lease and this First Amendment shall remain as due and payable pursuant to the provisions of the Lease as amended. In the event Lessee defaults on any provision under the Lease beyond any notice and applicable cure period, the Abated Base Rent herein shall immediately become due and payable by Lessee to Lessor without further notice from Lessor. 

 

3.     Lessee’s Share of Operating Expense Increase and Base Year. The Lease shall be and hereby is amended as follows:

 

a.     Prior to the Extended Lease Term Commencement Date for the Original Premises, Lessee shall continue to pay Lessee’s Proportionate Share for the Project Costs, currently estimated to be 10.23% and 19.77% of the Building Costs, in accordance with the terms of the Lease as amended. Upon the Lease Commencement Date for the Original Premises and the Lease Commencement Date for Expansion Premises, Lessee’s Proportionate Share for the Project Costs shall be 11.55% and 21.52% for the Building Costs.

 

b.     Effective upon the Lease Commencement Date for the Original Premises and the Lease Commencement Date for Expansion Premises, the Base Year for the Extended Lease Term shall be adjusted to the Calendar Year 2018. Lessee shall have no obligation to pay their share of the Operating Expense or Property Tax increases applicable to the first twelve (12) months of the Extended Lease Term for the Original Premises and Expansion Premises. 

 

c.     Effective twelve (12) months following the Lease Commencement Date for the Original Premises and the Lease Commencement Date for Expansion Premises and notwithstanding anything to the contrary set forth in the Lease, Lessee shall pay Lessee’s Proportionate Share of the actual increases in the cost of Utilities, Insurance, and Property Taxes (collectively, the “Uncontrollable Costs of Operating Expense above Lessor’s Base Costs”). All other Operating Expenses (collectively the “Controllable Costs of Operating Expenses above Lessor’s Base Costs”) shall be non-cumulative and shall not exceed five-percent (5%) maximum increase per year of the Lease. 

 

4.     Condition of the Premises. Lessee shall and hereby does accept the Premises in its current “AS-IS” condition, subject to completion of Lessor’s Work described and specified in Paragraph 8 below and Exhibit A – Landlord’s Work (“Landlord’s Work”). Tenant acknowledges and agrees that Landlord is not required to provide or perform any other improvement work in or to the Premises other than Landlord’s Work and any/all code compliance upgrades required as a result of the cost and/or completion of Landlord’s Work. 

 

5.     Lessee Tenant Improvements. Except for Lessor’s Work below, Lessee shall have the right to improve the Original Premises and the Expansion Premises, subject to a mutually acceptable Construction Plan provided by Lessee’s space planner and the other requirements of the Lease, all at Lessee’s sole cost and expense. Lessee’s cost and expense shall include, but are not limited to, monies allocated for preliminary space plans, architectural, electrical and mechanical working drawings including engineering, permits and fees for Lessor’s project/construction management. Lessee shall have the right to self-perform the Tenant Improvements for the Premises in accordance with the terms and conditions of the Lease as amended. Lessee shall have the right to select high quality materials that are not building standard materials if the design selection so dictates, with Lessor’s reasonable consent. 

 

Prior to the start of any Tenant Improvements by Lessee, including but not limited to, Lessee’s Licensed Contractor(s), Agent(s), Vendor(s), etc., Lessee shall provide Lessor, at Lessee’s sole cost and expense, Notice(s) of Non-Responsibility and evidence of Insurance with Lessor shown as an additional insured party. All of Lessee’s plans, specifications and work shall comply with building codes for the County of Orange and City of Newport Beach, California, and shall be in a form satisfactory to appropriate governmental authorities responsible for issuing permits and licenses required for construction. To the best of Lessee’s ability, Lessee shall cooperate and coordinate the work schedule regarding the Tenant Improvements with Lessor. Lessee shall make reasonable efforts during the Tenant Improvement process to not interfere with the operation of the Building and/or disrupt business of any existing Tenants of the Property during normal business hours.

 

Lessee shall, within ninety (90) days following the completion of the Lessee Tenant Improvements, provide Lessor with a copy of all supporting invoices, proof of payment, lien releases, certificate of occupancy, new as-built CAD construction drawings, permits, and other documents as may be reasonably requested by Lessor. 

 

 

2

 

  

6.     Parking. Prior to the Lease Commencement Date for the Original Premises and the Lease Commencement Date for Expansion Premises for the Extended Lease Term, Lessee Vehicle Parking shall remain the same per the Lease. Effective upon Lease Commencement Date for the Original Premises or the Lease Commencement Date for Expansion Premises (if applicable) for the Extended Lease Term, Paragraph 59 shall be deleted entirely and replaced as follows:

 

Providing Lessee is not in breach of the Lease beyond any applicable cure period(s), effective upon the Lease Commencement Date for the Original Premises or the Lease Commencement Date for Expansion Premises continuing for the duration of this Extended Lease Term (June 30, 2023), Lessee shall be entitled to use and lease up to forty-four (44) unreserved vehicle surface parking spaces and six (6) reserved vehicle parking spaces in the parking area below the Building for Lessee’s employees and visitors at no charge. Lessee shall have access to the common area parking areas within the Project on a first-come, first-serve basis twenty-four (24) hours per day, seven (7) days per week for their employees only. If available, Lessee may purchase from Lessor on a month-to-month basis additional Reserved Parking Spaces at a rate of $50.00 per space per month for months 1 – 24 and $60.00 per space per month for months 25 – 64 of this Extended Lease Term only.

 

7.     Option to Extend. Effective March 1, 2018, Paragraph 50 of the Original Lease, is hereby deleted entirely and replaced with Paragraph 50-A (Option to Extend) attached hereto.

 

8.     Lessor’s Work. Lessor shall, at Lessor’s sole cost without pass through to Lessee either directly or through increases in Operating Expenses, make their best effort to complete all items, and each individual item, of the work in Exhibit A – Lessor’s Work (“Lessor’s Work”) attached hereto prior to March 1, 2018, subject to force majeure and circumstances beyond Lessor’s reasonable control. 

 

Lessor’s Work shall be conducted in the Premises while Lessee is in occupancy thereof and paying rent under the Lease as amended. Lessee shall, at Lessee’s sole cost and expense, prepare the Premises for Lessor’s Work, including, but not limited to, any and all code compliance upgrades (to include but not be limited to ADA and Title 24) that are required as a result of Lessor’s Work, packing of all of Lessee’s personal property and disconnect/re-connect of telephone and data cabling/wiring, computers, etc. Lessor shall not be responsible for the movement/relocation of Lessee’s furniture, fixtures, equipment, etc. during the construction process of Lessor’s Work. Lessee agrees to cooperate with Lessor and to make the Premises reasonably available to Lessor and its contractors/vendors for the performance of Lessor’s Work. Lessee acknowledges that some interruptions and/or interference with Lessee’s business may occur during the course of Lessor’s Work, but agrees that no interruptions or inconveniences to Lessee or its business suffered as a result of Lessor’s Work shall constitute an eviction of Lessee from the Premises, whether constructive or otherwise, and Lessee shall in no event be excused from paying the Monthly Base Rent and/or additional rent that it is scheduled to pay pursuant to the terms of the Lease as amended. Lessor and Lessee shall cooperate and cause their respective employees, agents and contractors to cooperate with the other to expedite completion of the Lessor’s Work after normal business hours or on weekends so that there is not an interference with Lessee’s business operations in the Premises.

 

"Substantial completion" shall mean that all of Lessor's Work is completed, except for minor punch list items which do not materially affect the use or occupancy of the Premises. Lessor shall use its commercially reasonable best efforts to cause the completion of all punch list work within thirty (30) days of Lessee’s occupancy of the Expansion Premises. So long as Lessee does not interfere with Lessor’s Work, Lessee shall have access to the Expansion Premises for the purpose of installation of Lessee’s furniture, fixtures and equipment, and upon Lessor’s receipt of Lessee’s evidence of Insurance for the entire Premises (approximately 11,728 RSF). Within twenty (20) days following substantial completion of Lessor’s Work, Lessor and Lessee shall execute a Lease Commencement Memorandum stating the actual Lease and Rent Commencement Date(s), Expiration Date, Rent Increase Dates, etc. for the Original Premises and the Expansion Premises for this Extended Lease Term.

 

In the event Lessee makes any request(s) and/or modification(s) and/or causes any delay(s) regarding Lessor’s Work and beyond the scope of the Landlord’s Work herein, Lessee shall be responsible for all cost(s) associated with said request(s) and/or modification(s) and/or delay(s) which may result in net cost increases in Lessor's work including but not limited to Lessor’s project/construction management fees. Lessee shall pay such costs to Lessor within ten (10) business days of Lessor’s written request.

 

9.     Brokers and Leasing Commission. Except for the Brokers identified below, Lessee and Lessor each represent and warrant to the other that neither has had any dealings or entered into any agreements with any other person, entity, broker or finder in connection with the negotiation of this First Amendment, and no other broker, person, or entity is entitled to any commission or finder's fee in connection with the negotiation of this First Amendment. Lessee and Lessor each agree to indemnify, defend and hold the other harmless from and against any claims, damages, costs, expenses, attorneys' fees or liability for compensation or charges which may be claimed by any such other broker, finder or other similar party by reason of any dealings, actions or agreements of the indemnifying party.

 

Newmark Grubb Knight Frank (Stacy Garcia and Greg Tippin) are the Procuring Broker/Agent and represent the Lessee, and Lee & Associates – Newport Beach (Kimberly Ahlberg & Jim Snyder) are the Listing Broker/Agent(s) and represent the Lessor for this Lease transaction. The Leasing Commission shall be calculated based on six percent (6%) of the gross Base Rent paid by Lessee during the first sixty (60) months of this Extended Lease Term. Said Leasing Commission shall be split four percent (4%) to the Procuring Broker/Agent and two percent (2%) to the Listing Broker/Agent; and three percent (3%) of the gross Base Rent paid by Lessee during months sixty-one (61) through sixty-four (64) split two percent (2%) to the Procuring Broker/Agent and one percent (1%) to the Listing Broker/Agent. Lessor shall pay 100% of the Leasing Commission upon full execution of this First Amendment. 

 

 

3

 

 

10.     Lessee Notices. Effective upon execution of this First Amendment, all notices to the Lessee regarding the Premises as per the Lease shall be in writing and delivered as per the Lease to Lessee at 20411 SW Birch, #250, Newport Beach, CA 92660

 

Attention: Andy Mazzarella

Telephone (949) 548-2253 ext. 409

Facsimile ______________

E-Mail: andym@getCAKE.com

 

 

11.     Lessor Notices. Effective upon execution of this First Amendment, all notices to the Lessor regarding the Premises as per the Lease shall be in writing and delivered as per the Lease to Lessor: Ferrado Bayview, LLC, 20411 SW Birch, Suite #360, Newport Beach, CA 92660.

 

Attention: Mr. Pepe Tena

Telephone (949) 474-9884

Facsimile (949) 474-9892

 

 

12.     Attachments. The following are attached hereto and made a part of this First Amendment:

 

	
 
	
●
	
Exhibit A - Landlord’s Work

	 	
●
	
Paragraph 50-A (Option to Extend)

	 	
●
	
Floor Plan

 

13.     Security Deposit. – Currently, Lessees’ Security Deposit on file with Lessor is $25,366.24. Upon Lessee’s signature execution of this First Amendment, Lessee shall pay Lessor $13,336.16 as additional Security Deposit for a total Security Deposit of $38,702.40.

 

14.     Signs. Currently, Lessee’s name (known as “CAKE”) is on a single panel/strip on the existing Multi-Tenant Exterior Monument Sign with other Tenant names. In addition to CAKE’S name, the existing single panel/strip also contains Kovach Marketing. Kovach Marketing is no longer a Tenant in the building. Paragraph 63 of the Original Lease shall be modified to include the following: “Lessor shall provide, at Lessor’s sole cost and expense, a single panel/strip on the existing Multi-Tenant Exterior Monument Sign at the front entry to the building with Lessee’s name. Said single panel/strip shall be exclusive to Lessee and shall not be shared with any other Tenant name.” 

 

15.     No Other Modification. Lessor and Lessee agree that except as otherwise specifically modified in this First Amendment, the Lease has not been modified, supplemented, amended, or otherwise changed in any way and the Lease remains in full force and effect between the parties hereto as modified by this First Amendment. To the extent of any inconsistency between the terms and conditions of the Lease and the terms and conditions of this First Amendment, the terms and conditions of this First Amendment shall apply and govern the parties. 

 

16.     Entire Agreement. This First Amendment embodies the entire understanding between Lessor and Lessee with respect to its subject matter and can be changed only by an instrument in writing signed by Lessor and Lessee.

 

17.     Attorney’s Fees. The provisions of the Original Lease as amended respecting payment of Attorney’s Fees shall also apply to this First Amendment.

 

18.     Counterparts. This First Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one in the same First Amendment.

 

IN WITNESS WHEREOF, Lessor and Lessee have each executed this First Amendment as of the date set forth below their respective signatures.

 

	
LESSEE:
	 	
LESSOR:
	 
	
ACCELERIZE INC. (formerly known as Accelerize

New Media, Inc., a Delaware corporation) 
	 	
FERRADO BAYVIEW, LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 
	
By: 
	/s/ Anthony Mazzarella	 	
By: 
	/s/ Joseph Pepe Tena	 
	Name:	Anthony Mazzarella, CFO	 	Name:	Joseph Pepe Tena	 
	Date:	August 25, 2017	 	Date:	August 26, 2017	 
	 	 	 	 	 	 
	
By: 
	 	 	
By: 
	 	 
	 	Title	 	 	Title	 
	
Date: 
	                                       2017	 	
Date: 
	                                             2017	 

 

 

4

 

 

FIRST AMENDMENT TO STANDARD MULTI-TENANT OFFICE LEASE – GROSS

 

EXHIBIT A – LESSOR’S WORK

 

 

Lessor, at Lessor’s sole cost and expense, shall provide Lessee with a “turn-key” build-out of the Premises, pursuant to the attached space plan prepared by CDL Associates dated August 9, 2017, which shall also include, but not be limited to, the following:

 

	 	
1)
	
Combine the Expansion Premises and the Original Premises, including consistent ceiling tiles and other finishes

	 	
2)
	
Replace all light fixtures with new, current fixtures

	 	
3)
	
Paint the Premises

	 	
4)
	
Redistribute electrical, plumbing, HVAC, sprinklers, etc. as needed 

	 	
5)
	
Reconfigure certain offices and exiting per the space plan

	 	
6)
	
Add electrical outlets in to be determined locations as directed by Tenant

 

Additionally, all Lessor’s Work shall be code compliant including, but not limited to, Title 24 and ADA. Further, if the cost and/or completion of Lessor’s Work causes code compliance upgrades to be required outside Lessee’s Original and/or Expansion Premises in any area of the Building or Project, Landlord shall absorb said costs at Landlord’s sole cost and expense.

 

 

 

 

 

 

Intentionally Blank

 

 

5

 

 

EXHIBIT A – LESSOR’S WORK

 

 

 

	

 

 

6

 

 

EXHIBIT A – LESSOR’S WORK

 

	

 

 

7

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