Document:

Exhibit 10.3 

 

Execution Version

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT
TO CREDIT AGREEMENT (this “Amendment”), dated as of the First Amendment Effective Date, is by and among
OHI HEALTHCARE PROPERTIES LIMITED PARTNERSHIP, a Delaware limited partnership (the “Borrower”), the lenders
identified on the signature pages hereto and BANK OF AMERICA, N.A., as Administrative Agent.

 

WITNESSETH

 

WHEREAS, the
Borrower, the lenders party thereto from time to time (the “Lenders”) and the Administrative Agent have entered
into that certain Credit Agreement dated as of May 25, 2017 as amended, supplemented or otherwise modified prior to the date hereof
(the “Existing Credit Agreement”);

 

WHEREAS, the
Borrower, certain of the Lenders and the Administrative Agent have agreed to amend the Existing Credit Agreement as set forth herein;

 

NOW, THEREFORE,
in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

PART 1

DEFINITIONS

 

SUBPART 1.1      Certain
Definitions. The following terms used in this Amendment, including its preamble and recitals, have the following meanings:

 

“Amended
Credit Agreement” means the Existing Credit Agreement as amended hereby.

 

SUBPART 1.2      Other
Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Amendment, including its
preamble and recitals, have the meanings provided in the Existing Credit Agreement.

 

PART 2

AMENDMENTS TO 

EXISTING CREDIT AGREEMENT

 

SUBPART 2.1       The following definitions are hereby added to Section 1.01 of the Existing Credit Agreement in the appropriate alphabetical
order:

 

“Beneficial Ownership
Certification” means a certification regarding beneficial ownership required by the Beneficial Ownership Regulation.

 

“Beneficial Ownership
Regulation” means 31 C.F.R. § 1010.230.

 

“First Amendment”
means that certain First Amendment to Credit Agreement, dated as of the First Amendment Effective Date, by and among the Borrower,
the Lenders party thereto and the Administrative Agent.

 

“First Amendment Effective
Date” means February 1, 2019.

 

 

    

     

    

 

SUBPART 2         Article
V of the Existing Credit Agreement is hereby amended to add a new Section 5.23 immediately following Section 5.22
and to read as follows:

 

5.23         Beneficial Ownership
Certification.

 

As of the First Amendment Effective
Date, the information included in the Beneficial Ownership Certification, if applicable, is true and correct in all respects.

 

SUBPART 2.3      The first paragraph of Article VI of the Existing Credit Agreement is hereby amended and restated in its entirety to read
as follows:

 

The Borrower hereby covenants
and agrees (on its own behalf and on behalf of the other Credit Parties and Omega REIT, as applicable) that until the Obligations,
together with interest, fees and other obligations hereunder, have been paid in full:

 

SUBPART 2.4       Section
6.12(h) of the Existing Credit Agreement is hereby amended by deleting each instance of “and Omega Holdco” set
forth therein.

 

SUBPART 2.5       The
first paragraph of Article VII of the Existing Credit Agreement is hereby amended and restated in its entirety to read as
follows:

 

The Borrower hereby covenants
and agrees (on its own behalf and on behalf of the other Credit Parties and Omega REIT, as applicable) that until the Obligations,
together with interest, fees and other obligations hereunder, have been paid in full:

 

SUBPART 2.6       Section
7.03(g) of the Existing Credit Agreement is hereby amended by deleting each instance of “and Omega Holdco” set
forth therein.

 

SUBPART 2.7       Section
7.04 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

7.04         Fundamental Changes.

 

No Credit Party shall, nor shall
they permit any Subsidiary to, directly or indirectly, merge, dissolve, liquidate or consolidate with or into another Person, except
that, so long as no Event of Default exists or would result therefrom and subject to the proviso below, (a) a Credit Party may
merge or consolidate with or into one or more other Credit Parties, (b) any Subsidiary that is not a Credit Party may (i) merge
or consolidate with or into a Credit Party, so long as such Credit Party is the continuing or surviving Person, (ii) merge or consolidate
with or into another Subsidiary that is not a Credit Party, or (iii) may dissolve, liquidate or wind up its affairs at any time,
so long as such dissolution, liquidation or winding up, as applicable, could not reasonably be expected to have a Material Adverse
Effect, or (c) any other merger, dissolution, liquidation, wind up or consolidation that is not specified in clauses (a) or (b)
herein and is not otherwise prohibited pursuant to this Agreement shall be permitted; provided, that (i) if the Borrower
or Omega REIT is a party to any merger or consolidation permitted under this Section 7.04 it shall be the continuing or
surviving Person and (ii) in no event shall the Borrower and Omega REIT be permitted to merge or consolidate with each other.

 

SUBPART 2.8       Section
7.08 of the Existing Credit Agreement is hereby amended by deleting “, Omega Holdco” set forth therein.

 

    
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SUBPART 2.9      Section
7.14 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

7.14           Omega REIT Covenants.

 

Omega
REIT shall not directly or indirectly enter into or conduct any business or activity other than (a) in connection with the ownership,
acquisition and disposition of interests in the Borrower, (b) the management of the business of the Borrower, and (c) such business
or activity that is conducted by Omega REIT and its Subsidiaries on the date hereof or, in each case, such business or activity
as is reasonably ancillary or incidental thereto (in any case, a “Permitted Activity”); provided, however,
Omega REIT shall not own any assets other than (i) interests, rights, options, warrants or convertible or exchangeable securities
of the Borrower, (ii) assets that have been distributed to Omega REIT by its Subsidiaries that are held for fifteen (15) Business
Days or less pending further distribution to equity holders of Omega REIT or application by Omega REIT, as the case may be, pursuant
to a Permitted Activity, (iii) assets received directly or indirectly by Omega REIT from third parties (including, without limitation,
the net cash proceeds from any issuance and sale by Omega REIT of any equity interests or issuance of Senior Notes), that are
held for fifteen (15) Business Days or less pending further contribution to the Borrower or application by Omega REIT, as the
case may be, pursuant to a Permitted Activity, (iv) such bank accounts or similar instruments as it deems necessary in furtherance
of a Permitted Activity or to carry out its responsibilities under the Organization Documents of the Borrower and (v) other tangible
and intangible assets that, taken as a whole, are immaterial in relation to the consolidated assets of the Borrower and its Subsidiaries,
but which shall in no event include any equity interests other than those permitted in clauses (i) and (iii) of this sentence.
Nothing in this Section 7.14 shall prevent Omega REIT from (A) the maintenance of its legal existence or activities reasonably
incidental thereto (including, without limitation, the ability to incur fees, costs and expenses relating to such maintenance),
(B) the performance of its obligations with respect to the REIT Credit Agreement and the loan documents executed in connection
therewith or any other Omega REIT Indebtedness, (C) any public offering of its common stock or any other issuance or sale of its
equity interests or issuance of its Senior Notes, (D) the payment of dividends, (E) making contributions to the capital of the
Borrower, (F) participating in tax, accounting and other administrative matters as a member of the Consolidated Parties, (G) providing
indemnification to officers, managers and directors, (H) any activities incidental to compliance with the Securities Laws
and the rules of national securities exchanges and activities incidental to investor relations, shareholder meetings and reports
to shareholders or debtholders and (I) any activities incidental to the foregoing.

 

SUBPART 2.10     Section 8.01(f)
of the Existing Credit Agreement is hereby amended by deleting “, Omega Holdco” set forth therein.

 

SUBPART 2.11     Section 8.01(g)
of the Existing Credit Agreement is hereby amended by deleting “, Omega Holdco” set forth therein.

 

SUBPART 2.12     Section 8.01(h)
of the Existing Credit Agreement is hereby amended by deleting “, Omega Holdco” set forth therein.

 

SUBPART 2.13     Section 8.01(i)
of the Existing Credit Agreement is hereby amended by deleting “, Omega Holdco” set forth therein.

 

    
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SUBPART 2.14     The last sentence of
Section 10.22 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

The Borrower shall, promptly
following a request by the Administrative Agent or any Lender, provide all documentation and other information that the Administrative
Agent or such Lender reasonably requests in order to comply with its ongoing obligations under applicable “know your customer”
and anti-money laundering rules and regulations, including the Act and the Beneficial Ownership Certification (if applicable).

 

PART 3

CONDITIONS TO EFFECTIVENESS

 

SUBPART 3.1       First
Amendment Effective Date. This Amendment shall be and become effective as of the First Amendment Effective Date and when all
of the conditions set forth in this Part 3 shall have been satisfied, and thereafter this Amendment shall be known, and
may be referred to, as the “First Amendment”.

 

SUBPART 3.2      Execution
of Counterparts of Amendment. The Administrative Agent shall have received counterparts (or other evidence of execution, including
telephonic message or other electronic imaging means, satisfactory to the Administrative Agent) of this Amendment, which collectively
shall have been duly executed on behalf of the Borrower, Lenders constituting Required Lenders (as defined in the Existing Credit
Agreement) and the Administrative Agent.

 

SUBPART 3.3       Fees
and Expenses. Payment by the Credit Parties to the Administrative Agent of all fees and expenses relating to the preparation,
execution and delivery of this Amendment which are due and payable on the First Amendment Effective Date.

 

SUBPART 3.4       KYC.
Receipt by the Administrative Agent and each Lender of, in each case, at least five (5) days prior to the First Amendment Effective
Date:

 

(a)
           all documentation and other information requested by the Administrative Agent or any
Lender under applicable “know your customer” or anti-money laundering rules, regulations or policies, including the
Patriot Act; and

 

(b)             if
applicable, a Beneficial Ownership Certification in relation to each Credit Party that qualifies as a “legal entity customer”
under the Beneficial Ownership Certification.

 

PART 4

MISCELLANEOUS

 

SUBPART 4.1       Construction.
This Amendment is a Credit Document executed pursuant to the Existing Credit Agreement and shall (unless otherwise expressly indicated
therein) be construed, administered and applied in accordance with the terms and provisions of the Amended Credit Agreement.

 

    
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SUBPART 4.2       Representations
and Warranties. The Borrower hereby represents and warrants that it: (a) has the requisite corporate power and authority to
execute, deliver and perform this Amendment, and (b) is duly authorized to, and has been authorized by all necessary corporate
action, to execute, deliver and perform this Amendment, (c) after giving effect to this Amendment, the representations and warranties
contained in Article V of the Amended Credit Agreement are true and correct in all material respects on and as of the First Amendment
Effective Date upon giving effect to this Amendment as though made on and as of such date (except for those which expressly relate
to an earlier date) and (d) no Default or Event of Default exists under the Existing Credit Agreement on and as of the First Amendment
Effective Date upon giving effect to this Amendment.

 

SUBPART 4.3       Counterparts.
This Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement. Delivery of an executed counterpart of a signature
page of this Amendment by facsimile or other electronic means shall be effective as delivery of a manually executed original counterpart
of this Amendment.

 

SUBPART 4.4       Binding
Effect. This Amendment, the Amended Credit Agreement and the other Credit Documents embody the entire agreement between the
parties and supersede all prior agreements and understandings, if any, relating to the subject matter hereof. These Credit Documents
represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties. Except as expressly modified and amended in this Amendment, all the terms, provisions and conditions
of the Credit Documents shall remain unchanged and shall continue in full force and effect.

 

SUBPART 4.5      GOVERNING
LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

SUBPART 4.6     Severability.
If any provision of this Amendment is determined to be illegal, invalid or unenforceable, such provision shall be fully
severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the
illegal, invalid or unenforceable provisions. 

 

SUBPART 4.7      Affirmation.
Except as specifically amended above, the Credit Documents (and all covenants, terms, conditions and agreements therein), shall
remain in full force and effect, and are hereby ratified and confirmed in all respects by the Borrower. The Borrower covenants
and agrees to comply with all of the terms, covenants and conditions of the Existing Credit Agreement, as otherwise amended hereby,
notwithstanding any prior course of conduct, waivers, releases or other actions or inactions on Lenders’ part which might
otherwise constitute or be construed as a waiver of or amendment to such terms, covenants and conditions. 

 

SUBPART 4.8       No
Waiver. The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy
of Lenders, nor constitute a waiver of any provision of any Credit Document or any other documents, instruments and agreements
executed or delivered in connection with any of the foregoing. Nothing herein is intended or shall be construed as a waiver of
any existing Defaults or Events of Default under the Credit Documents or any of Lenders’ rights and remedies in respect
of such Defaults or Events of Default.

 

[SIGNATURE PAGES FOLLOW]

 

    
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IN WITNESS WHEREOF,
each of the parties hereto has caused a counterpart of this First Amendment to Credit Agreement to be duly executed and delivered
as of the date first above written.

 

	BORROWER:	OHI HEALTHCARE PROPERTIES LIMITED

PARTNERSHIP
	 	 
	 	By	/s/ Daniel J. Booth
	 	Name:	Daniel J. Booth
	 	Title:	Chief Operating Officer

 

OHI
HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

FIRST
AMENDMENT TO CREDIT AGREEMENT

 

    

     

    

 

	ADMINISTRATIVE AGENT:	bank of america, n.a.,
	 	as Administrative Agent
	 	 
	 	By:	/s/ Henry Pennell
	 	Name:	Henry Pennell
	 	Title:	Vice President

 

OHI
HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

FIRST
AMENDMENT TO CREDIT AGREEMENT

 

    

     

    

 

	LENDERS:	bank of america, n.a., as a Lender
	 	 
	 	By:	/s/ Yinghua Zhang
	 	Name:	Yinghua Zhang
	 	Title:	Director

 

OHI
HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

FIRST
AMENDMENT TO CREDIT AGREEMENT

    

     

    

 

	 	CREDIT AGRICOLE COPORATE AND

INVESTMENT BANK,
	 	as a Lender
	 	 
	 	By:	/s/ Gordon Yip
	 	Name:	Gordon Yip
	 	Title:	Director
	 	 	 
	 	By:	/s/ Karen L. Ramos
	 	Name:	Karen L. Ramos
	 	Title:	Managing Director

 

OHI
HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

FIRST
AMENDMENT TO CREDIT AGREEMENT

 

    

     

    

 

	 	CITIZENS BANK, NATIONAL ASSOCIATION,
	 	as a Lender
	 	 	 
	 	By:	/s/ Michelle Dawson
	 	Name:	Michelle Dawson
	 	Title:	Vice President

 

OHI
HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

FIRST
AMENDMENT TO CREDIT AGREEMENT

 

    

     

    

 

	 	SUNTRUST BANK,
	 	as a Lender
	 	 
	 	By:	/s/ John Cappellari
	 	Name:	John Cappellari
	 	Title:	Director

 

OHI
HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

FIRST
AMENDMENT TO CREDIT AGREEMENT

 

    

     

    

 

	`	ROYAL BANK OF CANADA,
	 	as a Lender
	 	 	 
	 	By:	/s/ William Behuniak
	 	Name:	William Behuniak
	 	Title:	Authorized Signatory
	 	 

 

OHI
HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

FIRST
AMENDMENT TO CREDIT AGREEMENT

 

    

     

    

 

	 	MUFG BANK, LTD. (F/K/A THE BANK OF TOKYO-

MITSUBISHI UFJ, LTD.),
	 	as a Lender
	 	 	 
	 	By:	/s/ David Meisner
	 	Name:	David Meisner
	 	Title:	Vice President

 

OHI
HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

FIRST
AMENDMENT TO CREDIT AGREEMENT

 

    

     

    

 

	 	CAPITAL ONE, NATIONAL ASSOCIATION,
	 	as a Lender
	 	 	 
	 	By:	/s/ Jason LaGrippe
	 	Name:	Jason LaGrippe
	 	Title:	Duly Authorized Signatory

 

OHI
HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

FIRST
AMENDMENT TO CREDIT AGREEMENT

 

    

     

    

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	 	as a Lender
	 	 	 
	 	By:	/s/ Andrea S. Chen
	 	Name:	Andrea S. Chen
	 	Title:	Managing Director

 

OHI
HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

FIRST
AMENDMENT TO CREDIT AGREEMENTex_134146.htm

Exhibit 10.1

 

Stock Option Award Agreement

 

 

Giga-tronics Incorporated, a California corporation, and the undersigned person (“Optionee”) are entering into this Stock Option Agreement effective as of the Grant Date set forth below. The Company has granted to Optionee the option (the “Option”) to purchase the number of shares (the “Shares”) of common stock, no par value, of the Company (“Stock”) set forth below at the per Share purchase price (the “Exercise Price”) set forth below, pursuant to the terms of this Award Agreement. The Option was granted under the Company’s 2018 Equity Incentive Plan, as the same may be amended, modified, supplemented or interpreted from time to time (the “Plan”), which is incorporated herein by reference and to which this Option is subject in all respects.

 

 

 

	
			Optionee Name:  

				 

 

	
			Grant Date:   

				 

 

	
			Vesting Commencement Date:  

				 

 

	
			Number of Shares:  

				
			NQ        

			

 

	
			Expiration Date:  

				 

 

	
			Exercise Price:  

				 

 

 

 

1.     Terms of Plan. All capitalized terms used in this Award Agreement and not otherwise defined shall have the meanings ascribed thereto in the Plan. Optionee confirms and acknowledges that Optionee has received and reviewed copies of the Plan and the Prospectus, dated November 30, 2018, with respect to the Plan. The Plan is administered by the Committee which has complete authority to make all determinations with respect to each Award, to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, to determine the terms and provisions of Award Agreements, and to make all other determinations under the Plan.

 

2.     Nature of the Option. The Option has been granted as an incentive to Optionee’s Continuous Service, and is in all respects subject to such Continuous Service and all other terms and conditions of this Award Agreement and the Plan. The Option is intended to be a Nonstatutory Option.

 

Form for Nonstatutory Options (four year vesting schedule)

 

 

 

3.     Vesting, Exercise and Term of Option. The Option shall vest and become exercisable during its term in accordance with the following provisions:

 

 (a)     Vesting and Right of Exercise. 

 

(i)     The Option shall vest and become exercisable with respect to 25% of the Shares on the first anniversary of the Vesting Commencement Date and as to an additional one forty-eighth (1/48th) of the Shares each successive month thereafter on the same day of each month as the Vesting Commencement Date until all of the Shares have vested, subject to Optionee’s Continuous Service.

 

(ii)     Subject to Section 6.5 of the Plan, in the event of Optionee’s death, disability or other termination of Optionee’s Continuous Service, the Option shall be exercisable in the following manner, provided that the unvested portion of the Option shall be immediately forfeited:

 

(I)     Termination of Employment: the Option ceases to be exercisable 90 days following termination of employment, during which time it shall be exercisable only to the extent exercisable at the date of termination, except that the Option shall not be exercised after its Expiration Date;

 

(II)     Disability: if Optionee was in Continuous Service from the Grant Date until the date of termination of service due to disability the Option ceases to be exercisable twelve months following the date of termination of Continuous Service from disability, during which time it shall be exercisable only to the extent exercisable at the date of termination due to disability, except that the Option shall not be exercised after its Expiration Date; and

 

(III)     Death: if the Optionee was in Continuous Service from the Grant Date until the date of death, the Option ceases to be exercisable twelve months following the date of death, during which time it shall be exercisable by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest, inheritance or otherwise as a result of the Optionee’s death only to the extent exercisable at the date of death, except that the Option shall not be exercised after its Expiration Date.

 

(b)       Method of Exercise. In order to exercise any vested portion of the Option, Optionee shall notify the Company in writing by executing and delivering the Notice of Exercise of Stock Option in the form attached hereto as Exhibit A (the “Exercise Notice”). The Shares as to which the Option has been exercised shall be registered in the name of Optionee or otherwise as the Optionee may request and the Company shall permit.

 

(c)       Restrictions on Exercise; Term of Option.

 

(i)     Optionee may exercise the Option only with respect to Shares that have vested in accordance with Section 3(a) of this Award Agreement.

 

(ii)     Optionee may not exercise the Option if the issuance of the Shares upon such exercise or the method of payment of consideration for such Shares would constitute a violation of any applicable federal or state securities law or other law or regulation.

 

2

 

 

(iii)     The method and manner of payment of the Exercise Price will be subject to the prohibition on loans to directors and executive officers in Section 402 of the Sarbanes-Oxley Act of 2002, to the rules under Part 221 of Title 12 of the Code of Federal Regulations as promulgated by the Federal Reserve Board, and to any other applicable laws, rules or regulations.

 

(iv)     As a condition to the exercise of the Option, the Company may require certain representations and warranties as the Company may request pursuant to Section 9.3 of the Plan. Prior to or subsequent to exercise of the Option, the Company may require the Optionee to enter into certain lock-up arrangements as provided in Section 9.4 of the Plan.

 

(v)     Optionee may only exercise the Option upon, and the obligations of the Company under this Award Agreement to issue Shares to Optionee upon any exercise of the Option is conditioned on, satisfaction of all federal, state, local or other withholding tax obligations associated with such exercise (whether so required to secure for the Company a tax deduction or otherwise) (“Withholding Obligations”). The Company reserves the right to require Optionee to remit to the Company an amount sufficient to satisfy all Withholding Obligations prior to the issuance of any Shares upon any exercise of the Option. In addition, Optionee authorizes the Company to deduct any such Withholding Obligations from any payments of any kind due to Optionee (whether in connection with the Option or otherwise). Subject to the approval of the Committee (which may be unreasonably withheld), the Optionee may elect to satisfy Withholding Obligations, in whole or in part, by having the Company withhold shares of Stock otherwise due to the Optionee upon exercise of the Option, or by submitting shares of Stock previously owned by the Optionee.

 

(vi)     No fraction of a Share shall be purchasable or deliverable upon exercise of the Option, but in the event any such Shares shall include a fraction of a Share (whether due to net exercise, payment of the Exercise Price by having Shares withheld or by submitting previously owned shares, by adjustment of the Option as provided in the Plan, or otherwise), such number of Shares shall be rounded down to the nearest smaller whole number of Shares.

 

(vii)     The Option may not be exercised following the Expiration Date, and may be exercised during such term only in accordance with the terms of this Award Agreement.

 

3

 

 

4.     Transferability of Option.

 

 (a)     Subject to the approval of the Committee (which may be unreasonably withheld), the Option may be transferred by the Optionee through a gift or domestic relations order in settlement of marital property rights, and may be reacquired by the Optionee from, any “family member” as defined in and in a manner consistent with Section 6.4 of the Plan, provided that any such transfer is without payment of any value whatsoever.

 

 (b)     The terms of this Award Agreement shall bind the Optionee and his or her spouse or domestic partner and the respective Permitted Transferees, executors, administrators, heirs, personal representatives and successors of the foregoing.                                                                                

 

5.     Method of Payment.

 

 (a)     Upon exercise (and together with the delivery of the Exercise Notice), Optionee shall pay the aggregate Exercise Price of the Shares purchased and the Withholding Obligations by any of the following methods, or a combination thereof, at the election of Optionee:

 

(i)     cash;

 

(ii)     certified or bank cashier’s check;

 

(iii)     if shares of Stock are traded on an established stock market or exchange on the date of exercise, by surrender of whole shares of Stock having a Market Value equal to the portion of the Exercise Price to be paid by such surrender, provided that if such shares of Stock to be surrendered were acquired upon exercise of an Incentive Option, Optionee must have first satisfied the holding period requirements under Section 422(a)(1) of the Code;

 

(iv)     by a “net exercise” of the Option, in which the Company will not require a payment of the Exercise Price but will reduce the number of shares of Stock issued upon the exercise by the largest number of whole shares that have a Fair Market Value that does not exceed the aggregate Exercise Price of the Shares as to which the Option is being exercised. With respect to any remaining balance of the aggregate Exercise Price, the Company will accept a cash payment from the Optionee. The number of shares of Stock underlying the Option will decrease following exercise to the extent of (i) Shares used to pay the Exercise Price of an Option under the “net exercise” feature, (ii) Shares actually delivered to the Optionee as a result of such exercise and (iii) shares withheld to pay the Withholding Obligations; or

 

(v)     if shares of Stock are traded on an established stock market or exchange on the date of exercise, pursuant to and under the terms and conditions of any formal cashless exercise program authorized by the Company entailing the sale of the Stock subject to an Option in a brokered transaction (other than to the Company).

 

4

 

 

  (b)       Payment in Stock. If Optionee shall pay all or a portion of the aggregate Exercise Price and Withholding Obligations due upon an exercise of the Option by surrendering shares of Stock pursuant to Section 5(a)(iii), then Optionee:

 

(i)     shall accompany the Exercise Notice with a duly endorsed blank stock power (with an appropriate signature guarantee if requested by the Company) with respect to the number of shares of Stock to be surrendered and shall deliver the certificate(s) representing such surrendered shares to the Company at its principal offices within two business days after the date of the Exercise Notice;

 

(ii)     authorizes the Company to transfer so many whole number of Shares represented by such certificate(s) that have a Fair Market Value that does not exceed the aggregate Exercise Price for the Shares as to which the Option is being exercised. With respect to any remaining balance of the aggregate Exercise Price, the Company will accept a cash payment from the Optionee; and

 

(iii)     may not surrender any fractional share as payment of any portion of the Exercise Price.

 

6.     Not an Employment Contract. Nothing in the Plan or this Award Agreement shall confer upon Optionee any right to continuation of the Optionee’s employment or other association with the Company or shall interfere with or restrict in any way the rights of the Company, which are hereby expressly reserved, to modify the terms of Optionee’s employment or to terminate Optionee’s employment at any time for any reason whatsoever, with or without cause.

 

7.     Tax Consequences Generally. Optionee acknowledges that Optionee may suffer adverse tax consequences as a result of exercise of the Option. Optionee acknowledges that the Company advises Optionee to consult with the Optionee’s tax advisers in connection with the tax implications relating to the Option including but not limited to the acquisition, disposition or transfer of the Option or of any securities or property in connection therewith, and that Optionee is not relying on the Company for any tax advice in connection therewith. Any adverse consequences incurred by an Optionee in connection with the Option, including, without limitation, from the use of shares of Stock to pay any part of the Exercise Price or any tax in connection with the exercise of the Option shall be the sole responsibility of Optionee.

 

8.     Consent of Spouse/Domestic Partner. Optionee agrees that Optionee’s spouse’s or domestic partner’s interest in the Option is subject to this Award Agreement and such spouse or domestic partner is irrevocably bound by the terms and conditions of this Award Agreement. Optionee agrees that all community property interests of Optionee and Optionee’s spouse or domestic partner in the Option, if any, shall similarly be bound by this Award Agreement. Optionee agrees that this Award Agreement is binding upon Optionee’s and Optionee’s spouse’s or domestic partner’s executors, administrators, heirs and assigns. Optionee represents and warrants to the Company that Optionee has the authority to bind Optionee’s spouse/domestic partner with respect to the Option. Optionee agrees to execute and deliver such documents as may be necessary to carry out the intent of this Section 10 and the consent of Optionee’s spouse/domestic partner.

 

5

 

 

IN WITNESS WHEREOF, Optionee and the Company are entering into this Award Agreement as of the Grant Date.

 

 

 

	 	 	
			Giga-tronics Incorporated

			
	 	 	 	 
	 	 	 	 
	 	 	
			By:

				 
	
			Optionee Signature

				 	
			 

				 
	 	 	
			Name:

				 
	 	 	 	 
	
			Optionee Name

				 	
			Title:

				 

 

6

 

 

Exhibit A

 

Notice of Exercise of Stock Option/Tandem Stock Appreciation Right

 

 

 

I ________________________________________ (please print legibly) hereby elect to exercise the stock options(s) identified below (the “Option(s)”) granted to me by Giga-tronics Incorporated (the “Company”) under its 2018 Equity Incentive Plan (the “Plan”) with respect to the number of shares of Stock of the Company set forth below (the “Shares”). I acknowledge and agree that my exercise of the Option(s) is subject to the terms and conditions of the Plan and the Stock Option Award Agreement(s) governing the Option(s). Optionee confirms and acknowledges that Optionee has received and reviewed copies of the Plan and the Prospectus, dated _____________, with respect to the Plan.

 

	 	
			1.

				
			_____________ Shares at $ ________ per share (Grant date of Option): ____________

			

	 	
			2.

				
			_____________ Shares at $ ________ per share (Grant date of Option): ____________

			

	 	
			3.

				
			_____________ Shares at $ ________ per share (Grant date of Option): ____________

			

	 	
			4.

				
			_____________ Shares at $ ________ per share (Grant date of Option): ____________

			

 

	
			 

			[OPTION EXERCISE]

			 

			
	I choose to pay the Exercise Price of the above option(s) as follows [please complete the numbered item(s) which apply to your exercise]:
	 	 
	1.	Cash:   $____________________ 
	 	 
	2.	Check: $____________________ (please make checks payable to Giga-tronics Incorporated)
	 	 
	3.	Surrender of _________________ Shares
	 	 
	4.	[Net exercise as described in Section 5(a)(iv) of the Option    ☐   [if applicable check box]]
	 	 
	 	 
	 	 
	I choose to pay the tax withholding relating to the exercise of the above option(s) as follows:
	 	 
	5.	Cash:    $____________________
	 	 
	6.	Check: $____________________ (please make checks payable to Giga-tronics Incorporated)
	 	 
	7.	Surrender of _________________ Shares currently owned by Optionee
	 	 
	8.	Withholding of _______________ Shares from Shares otherwise deliverable on exercise. 
	 	 
	 	 
	 	 

 

 

 

 

 

 

- 2 -

 

	 
	 

 

	
			[IF APPLICABLE]

			 

			
	
			 

			  Please deliver the stock certificate(s) representing the Shares to (please print legibly):

			 

			 

			                                                                                             

			 

			                                                                                            

			 

			                                                                                            

			 

			                                                                                            

			 

			 

			 

			

 

 

	Name:	 
	 	(please print legibly)

 

	Signature:	 

 

	Date:	 

 

	Phone No:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}]]