Document:

Exhibit

EXHIBIT 10.3

WGL Holdings, Inc.
2016 Omnibus Incentive Compensation Plan
ROE Performance Shares (FY 2018 Series) Award
Terms and Conditions

This document sets forth the terms and conditions related to the FY 2018 Series grant of performance share awards under the WGL Holdings, Inc. 2016 Omnibus Incentive Compensation Plan. The following terms have the meanings ascribed below:

“Award Agreement” means the agreement between an award recipient and WGL Holdings, Inc. relating to the grant of Performance Shares subject to the terms of the WGL Holdings, Inc. 2016 Omnibus Incentive Compensation Plan and this document. 

“Cause” shall have the meaning given to such term in the WGL Holdings Inc. and Washington Gas Light Company Change in Control Severance Plan for Certain Executives for any person who is a participant in such plan.  For any other person, cause shall mean gross misconduct and/or poor job performance, where gross misconduct includes any inappropriate and/or illegal behavior, including but not limited to a violation of a Company policy or rule such as the employee conflict of interest policy or the Company or DOT Drug and Alcohol Policies, insubordination, dishonesty, destruction, theft or misuse of Company property, excessive unexplained or unexcused absenteeism or violation of Company security, and poor job performance is a failure to perform one’s job in a satisfactory and appropriate manner, where such failure is caused by willful misconduct.

“Change in Control” shall have the meaning given to such term in the Plan.  

“Change in Control Policy” means the WGL Holdings, Inc. and Washington Gas Light Company    Change in Control Policy.  

 “Company” means WGL Holdings, Inc., a Virginia corporation.

“Disability” means such physical or mental condition that renders the Participant unable to engage in any substantially gainful activity for an Employer such that the Participant would be eligible for disability benefits under the Employer’s long term disability plan or is determined to be disabled by the Social Security Administration.

“Effective Time” means the date and time the Merger becomes effective.

“Employer” means the Company and all entities treated as a single employer under Internal Revenue Code section 414(b), (c), (m), or (o).  

“Good Reason” shall have the meaning given to such term in the WGL Holdings, Inc. and Washington Gas Light Company Change in Control Severance Plan for Certain Executives for any person who is a participant in such plan.  For any other person, Good Reason means (y) the Participant being required to relocate to a principal place of employment that is both more than 35 miles from the Participant’s existing principal place of employment and farther from the Participant’s current residence than the Participant’s existing principal place of employment or (z) a reduction in 

This document constitutes part of a prospectus covering securities which have been registered under the Securities Act of 1933.  This document is dated October 1, 2017.

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the Participant’s base salary and target annual bonus opportunity, in each case, as in effect as of the Effective Time.  

“Merger” means the merger described in the Agreement and Plan of Merger dated January 25, 2017 among AltaGas Ltd., Wrangler Inc. (“Wrangler”) and the Company, or any other substantially similar merger, acquisition, or business combination between the Company and AltaGas Ltd. and its affiliates.

 “Participant” means a person that has been awarded Performance Shares subject to the terms and conditions set forth in this document and the WGL Holdings, Inc. 2016 Omnibus Incentive Compensation Plan.

“Pension Plan” means the Washington Gas Light Company Employees’ Pension Plan.

“Performance Period” means October 1, 2017 through September 30, 2020.

“Performance Shares” means the performance shares awarded pursuant to an Award Agreement.

“Plan” means the WGL Holdings, Inc. 2016 Omnibus Incentive Compensation Plan. 

“Retirement” means a Participant’s separation from service with an Employer, other than an involuntary separation from service with Cause, that occurs:  (A) on or after the date on which the Participant attains age 65; or (B) on or after the date on which the Participant attains age 55 and 10 years of continuous service with an Employer; or (C) on or after the date on which the Participant reaches 30 years of “accredited service” under the Pension Plan; or (D) on or after the date on which the combination of the Participant’s age and “accredited service” under the Pension Plan reach 90.  

The Plan provides a complete description of the terms and conditions governing the Performance Shares. If there is any inconsistency between the terms of this document and the terms of the Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this document. All capitalized terms have the meanings ascribed to them in the Plan, unless otherwise indicated herein.

1.Value of Performance Shares. Each Performance Share represents and has a value equal to one share of common stock (“Stock”) of the Company.

2.Performance Shares Payout and Performance Measures.  
The number of Performance Shares earned is based upon the Company’s Return on Equity (ROE) Ratio, as measured by the following ratio: 

ROE Ratio      =         Average Consolidated Non-GAAP ROE
       Weighted Average Utility Authorized ROE 

“Averaged Consolidated Non-GAAP ROE” means the average of the Company’s actual non-GAAP ROE, which is a measurement of the ROE of WGL Holdings as a consolidated entity, for the three fiscal years in the Performance Period. The Company determines consolidated non-GAAP earnings by adjusting GAAP net income for certain operating earnings and/or losses (non-GAAP adjustments). This amount of consolidated non-GAAP earnings is then divided by average 

This document constitutes part of a prospectus covering securities which have been registered under the Securities Act of 1933.  This document is dated October 1, 2017.

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GAAP equity as adjusted for items included as non-GAAP adjustments. “Weighted Average Utility Authorized ROE” means the weighted average ROE allowed by our three commissions in Maryland, Virginia and the District of Columbia for the three fiscal years in  the Performance Period. The ROE is weighted using the average rate base by jurisdiction for each fiscal year.  Any change in the ROE allowed by the three commissions is prorated in the year in which the new rates are effective.  The percent of Performance Shares earned pursuant to this Section 2 is determined based on the following chart: 

	
		
	Company’s ROE Ratio
	Percent of Target Performance Shares Earned

	120%
	200%

	110%
	150%

	100%
	100%

	90%
	50%

	Below 90%
	0%

Interpolation shall be used to determine the percent of target award earned in the event the Percentile Rank does not fall directly on one of the ranks listed in the foregoing chart.  

Notwithstanding anything in the foregoing to the contrary, in the event of a Change in Control other than the Merger, the number of Performance Shares earned pursuant to this Section 2 shall be determined in accordance with the Change in Control Policy.  

3.Eligibility for Payment of Earned Performance Shares. 

(a)         Continuous Employment Through End of Performance Period.  Except as provided below, and subject to the provisions of Section 3(b), relating to Retirement during the Performance Period, and Section 3(c), relating to a Change in Control during the Performance Period, a Participant shall be eligible for payment of earned Performance Shares, as specified in Section 2, only if the Participant is employed on the date of grant of the award with respect to such Performance Shares and is continuously employed with the Employer through the end of the Performance Period.  For the sake of clarity, transfers of employment between one or more Employers where service is continuous shall be considered continuous employment with the Employer for the purposes of the Award Agreement.  Notwithstanding the foregoing, (i) a Participant who is an employee of an Employer will not be eligible for the payment of earned Performance Shares if at any time during the Performance Period the Participant has been demoted to a position that is below the most junior management position that was eligible for an award of performance shares and/or performance units as of the date that this award was granted, and (ii) a Participant shall not be eligible for payment of earned Performance Shares if he or she is suspended from employment with the Employer as of the date of the end of the Performance Period.  

(b)         Retirement During Performance Period.  Notwithstanding anything contained in Section 3(a), and subject to the provisions of Section 3(c), relating to a Change in Control, if a Participant separates from service prior to the end of the Performance Period as a result of Retirement, such Participant shall be eligible for payment of that proportion of the number of Performance Shares earned under Section 2 for such Performance Period that his or her number of full months of employment or service during the Performance Period bears to the total number of months in the Performance Period.  Further, subject to the provisions of Section 4, if a Participant separates from service with the Employer prior to the end of the Performance Period for any other 

This document constitutes part of a prospectus covering securities which have been registered under the Securities Act of 1933.  This document is dated October 1, 2017.

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reason, including voluntary or involuntary termination, death, or disability, the Human Resources Committee of the Board of Directors of the Company (the “Committee”), in its sole discretion, may determine that the Participant (or, in the case of the death of the Participant, the designated beneficiary or the estate) shall be eligible for that proportion of the number of Performance Shares described in the immediately preceding sentence. 

(c)         Change in Control During Performance Period.  Notwithstanding the above, in the event of a Change in Control (other than the Merger), if awards are assumed, continued, or substituted by the continuing legal entity, (i) a Participant who remains continuously employed throughout the Performance Period, (ii) a Participant who experiences a “qualifying termination” as defined in the Change in Control Policy within 24 months after a Change in Control, and (iii) a Participant who Retires on or after the date of the Change in Control, are eligible for payment of earned Performance Shares, as specified in Section 2, prorated in the event of Retirement as described in Section 3(b).  In the event of a Change in Control (other than the Merger), if awards are not assumed, continued, or substituted, (i) a Participant who remains continuously employed through the Change in Control, and (ii) a Participant who Retires on the date of the Change in Control, are eligible for payment of earned Performance Shares, as specified in Section 2.  A Participant who Retires prior to the Change in Control shall be eligible to receive a proportional number of Performance Shares, calculated in accordance with Section 3(b).  

4.Form and Timing of Delivery of Performance Shares.  Delivery of earned Performance Shares to the Participant shall be made upon the earliest of the three payment dates set forth below.

(a)         Specified Date.  The fourth quarter of the 2020 calendar year. 

(b)         Separation from Service.  Upon the Participant’s separation from service (as defined in Internal Revenue Code section 409A) due to the Participant’s qualifying termination as defined in the Change in Control Policy within 24 months after a Change in Control (a “Qualifying Termination”).    

(c)         Change in Control.  Upon a Change in Control that satisfies the definition of such term in Internal Revenue Code section 409A (“409A-Compliant Change in Control”), but only if the award is not assumed, continued, or substituted by the surviving legal entity with respect to such Change in Control.  

In the event payment is made pursuant to the Participant’s Qualifying Termination or 409A-Compliant Change in Control, such payment shall be made within ninety (90) days following such Qualifying Termination or 409A-Compliant Change in Control, as applicable.  Notwithstanding anything herein to the contrary, distributions may not be made to an individual who is a Key Employee (as defined below) as of his or her Qualifying Termination before the date which is six (6) months after the date of the Key Employee’s Qualifying Termination (the “Key Employee Delay Period”).  Any payments that would otherwise be made during this period of delay shall be accumulated and paid in the calendar month following the last day of the Key Employee Delay Period.  For purposes of this award, Key Employee means an employee who, as of December 31st of a calendar year, meets the requirements of Internal Revenue Code section 409A(a)(2)(B)(i) to be treated as a “specified employee” of the Company, i.e., a key employee (as defined in Internal Revenue Code section 416(i)(1)(A)(i), (ii) or (iii) applied in accordance with the regulations thereunder and disregarding Internal Revenue Code section 416(i)(5)).  If the Participant meets the 

This document constitutes part of a prospectus covering securities which have been registered under the Securities Act of 1933.  This document is dated October 1, 2017.

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criteria in the preceding sentence, he or she will be considered a Key Employee for purposes of the Plan and this Award for the 12-month period commencing on the next following April 1.

Delivery of earned Performance Shares to the Participant shall be made in shares of Stock except (i) fractional shares shall be paid in cash, and (ii) to the extent provided in the Change in Control Policy.

5.    Form and Timing of Delivery of Performance Shares in the Event of Agreed Merger.  Notwithstanding any provisions of this Award Agreement to the contrary, including, but not limited to, the final paragraph of Section 2, Section 3(c), and Section 4(c), at the Effective Time, the following provisions regarding the vesting and delivery of Performance Shares shall apply: 

(a)         Valuation.  As of the Effective Time, each outstanding Performance Share shall be converted into a fixed cash amount equal to the product of (i) the number of shares of Company Stock subject to the Performance Shares, with such number determined based on satisfaction of any applicable performance condition at the target level of performance for the Performance Period, multiplied by (ii) $88.25.  

(b)         Change in Control.  At or after the Effective Time, Performance Shares described in this Section 5 shall not be subject to Section 3(c) or Section 4(c) of the Award Agreement or the accelerated vesting and payment triggers related to a Change in Control and described in the Change in Control Policy or the WGL Holdings, Inc. and Washington Gas Light Company Change in Control Severance Plan for Certain Executives.  

(c)         Vesting.  Vesting of a Performance Share will be accelerated upon a Participant’s separation from service with an Employer following the Effective Time (i) due to such Participant’s death or Disability, (ii) by the Company without Cause, or (iii) by such Participant for Good Reason.  Any performance-based vesting conditions relating to a Performance Share shall automatically terminate at the Effective Time.  Except as specifically provided in this Section 5(c), the vesting provisions of Sections 3(a) and 3(b) shall continue to apply to a Performance Shares at and after the Effective Time.
(d)         Payment.  Delivery of earned Performance Shares to the Participant shall be made upon the earlier of (i) the fourth quarter of the 2020 calendar year, or (ii) upon the Participant’s separation from service (as defined in Internal Revenue Code section 409A) within 24 months after the Effective Time that coincides with accelerated vesting under Section 5(c), with such payment to be made within ninety (90) days following such separation from service.  Notwithstanding anything herein to the contrary, distributions to an individual who is a Key Employee as of the date of his or her separation from service shall be delayed, except in the case of the death of the Key Employee, to the date which is six (6) months after the date of the Key Employee’s separation from service.  Any payments that would otherwise be made during this period of delay shall be accumulated and paid in the calendar month following the last day of such six (6) month period.  Delivery of the value of earned Performance Shares to the Participant shall be paid in cash.
    
6.Dividends. Dividends shall accrue with respect to the Performance Shares for record dates during the Performance Period and between the end of the Performance Period and the payment date.  Any accrued dividends associated with Performance Shares actually paid out to a Participant shall be paid to such Participant in cash at the time the Performance Shares are paid out to such Participant. 

This document constitutes part of a prospectus covering securities which have been registered under the Securities Act of 1933.  This document is dated October 1, 2017.

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7.Rights as a Stockholder. The Participant shall have no rights as a stockholder of the Company with respect to the Performance Shares until any Stock is issued and delivered to the Participant.

8.Adjustments. Subject to Section 4(d) and 8(e) of the Plan, if the Committee determines that any recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, exchange of stock, stock or cash dividend, other distribution, liquidation, dissolution or other similar corporate transaction or event affects the Stock such that an adjustment is appropriate in order to prevent dilution or enlargement of the rights of Participants, then the Committee shall, in such manner as it may deem equitable, adjust any or all of the certain specified terms of any Award Agreement. These adjustments may include, among other adjustments, adjustments to the number and kind of shares of stock relating to an Award Agreement (or, if deemed appropriate, the Committee may make provisions for a cash payment with respect to an Award Agreement). In addition, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria of any grant or award under, the Plan (including, without limitation, cancellation of outstanding awards or substitution of awards using stock of a successor or other entity) in recognition of unusual or nonrecurring events (including, among other matters, events constituting a Change in Control) affecting the Company or any subsidiary of the Company or the financial statements of the Company or any of its subsidiaries, or in response to changes in applicable laws, regulations or accounting principles.

9.Tax Withholding. The Company may deduct or withhold, or require the Participant or the Participant’s beneficiary to remit to the Company or its affiliates, an amount sufficient to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of an award of Performance Shares.

10.Share Withholding. Unless determined otherwise by the Committee, the tax withholding requirement shall be satisfied  by the Company or any of its subsidiaries withholding shares of Stock having a fair market value equal to taxes required to be withheld on the transaction, subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 

11.Limitations on Transferability. Except as otherwise provided by the Plan or by the Committee, the Participant’s rights to Performance Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. The Participant’s rights under an Award Agreement shall be exercisable during the Participant’s lifetime only by the Participant or the Participant’s legal representative.

12.Beneficiary Designation. The Participant may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under an Award Agreement is to be distributed in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Secretary of the Company during the Participant’s lifetime. In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate.

13.No Right to Continued Employment or Service. Neither the Plan nor an Award Agreement shall be construed as giving the Participant or any employee or any person the right to be retained in the employ or service of the Company or any of its subsidiaries nor shall it interfere in any 

This document constitutes part of a prospectus covering securities which have been registered under the Securities Act of 1933.  This document is dated October 1, 2017.

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way with the right of the Company or any of its subsidiaries to terminate the Participant’s employment or service at any time. 

14.Successors and Assigns. All obligations of the Company and any of its subsidiaries under the Plan and an Award Agreement, with respect to an award of Performance Shares, shall be binding on any successor to the Company, whether the existence of such successor is the result of the Merger or any direct or indirect purchase, merger, consolidation or otherwise of all of the business and/or assets of the Company.

15.Administration. Award Agreements and the rights of Participants are subject to all the terms and conditions of the Plan, as the Plan may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. The Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and any Award Agreement, all of which shall be binding upon the Participant. Any inconsistency (other than an inconsistency related to treatment of the award in connection with the Merger) between Award Agreements and the Plan shall be resolved in favor of the Plan.

16.Amendment and Termination of the Plan. The Plan may be amended or terminated by the Board of Directors of the Company without stockholder approval unless the Board seeks to increase the number of shares of common stock subject to the Plan or stockholder approval is required by law or regulation or under the rules of any stock exchange or automated quotation system on which the common stock is then listed or quoted. Stockholder approval will not be deemed to be required under laws or regulations that condition favorable tax treatment on such approval, although the Board may, in its discretion, seek stockholder approval in any circumstances in which it deems such approval advisable.

17.Severability. If any portion of the Award Agreement or the terms and conditions set forth in this document are declared invalid or unenforceable by a court or governmental authority of competent jurisdiction, such declaration shall not affect the validity or enforceability of any remaining portion, which such remaining portion(s) shall remain in full force and effect as if the Award Agreement and/or this document had been agreed to with the invalid or unenforceable portion(s) eliminated.

18.Miscellaneous. If the Performance Period ends on a non-trading day, the Performance Period will be deemed to end on the immediately preceding trading day. If the day for any other action to be taken falls on a non-business day for the Company, the period for taking such action will extend through the Company’s next business day.

This document constitutes part of a prospectus covering securities which have been registered under the Securities Act of 1933.  This document is dated October 1, 2017.

7Exhibit 10.1

 

 SEPARATION AGREEMENT AND GENERAL RELEASE

 

This Separation Agreement
and General Release (“Agreement”), dated as of September 25, 2017, is entered into between Akoustis Technologies, Inc.
(“Company”), a corporation organized under the laws of the State of Delaware, and Mark Boomgarden (“Employee”).

 

WHEREAS, Employee has
been employed by the Company in the position of Vice President of Operations; and

 

WHEREAS, in order to
pursue other professional opportunities, Employee has given notice of his voluntary resignation of his employment with the Company
effective as of September 15, 2017 (“Separation Date”); and

 

WHEREAS, the Company
and Employee agree that it is in the best interest of each party that the terms and conditions of Employee’s separation from
employment be expressly set forth.

 

NOW, THEREFORE, in
consideration of the agreement and mutual covenants of the parties as contained in this Agreement, the parties agree as follows:

 

1.          
Payment through Separation Date. Employee will be paid his base salary at his regular rate of pay through the Separation
Date on the next regular payroll date that occurs after the Separation Date. Employee will also be paid his accrued but unused
vacation through the Separation Date in the amount of $4,632.79 on the next regular payroll date that occurs after the Separation
Date.

 

2.          
Severance. In exchange for the promises made by Employee in this Agreement and his performance of those promises,
the Company agrees not to exercise its repurchase option under the Award Agreements (as defined in Section 5(a)(iv) below) with
respect to: (a) the 16,204 unvested shares of common stock of the Company (“Common Stock”) under the June 2014 Award
Agreement (as defined in Section 5(a)(i) below), represented by certificate no. 1315; (b) the 24,306 unvested shares of Common
Stock under the September 2014 Award Agreement (as defined in Section 5(a)(ii) below), represented by certificate no. 1312; and
(c) 19,000 of the 38,000 unvested shares of Common Stock under the 2015 Award Agreement (as defined in Section 5(a)(iii) below),
represented by certificate no. 1252 (together with the 16,204 unvested shares of Common Stock in (a) above and the 24,306 unvested
shares of Common Stock in (b) above, for an aggregate of 59,510 unvested shares of Common Stock, the “Subject Shares”),
thereby allowing the Subject Shares to vest as described in Section 5 below (the “Severance”). The Company’s
agreement not to exercise its repurchase option under the Award Agreements shall be effective on the day immediately following
the expiration of the Revocation Period defined in Paragraph 10; provided, however, that Employee has not revoked
his signature to this Agreement (the “Effective Date”).

 

3.          
Benefits. Subject to plan requirements, Employee will be eligible to continue his group medical insurance plan participation
in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), following termination
of his employment. COBRA notice is being provided under separate cover by TriNet HR Corporation.

 

     

     

    

 

4.          
Financial Obligations. Other than the payments set forth in Paragraph 1, the Company shall have no other financial
obligations to Employee under any contract, agreement, compensation or benefit plans, programs, practices, policies or statements
by or on behalf of the Company, and his participation in all compensation and benefit plans, programs, practices, and policies
provided to the Company employees shall cease as of the Separation Date, except that Employee shall have the right to continue
group health plan coverage as is provided under COBRA and except as defined in the Company’s 401(K) plan documents.

 

5.          
Restricted Stock Awards.

 

(a)          
Outstanding Restricted Stock Awards.

 

(i)          
Employee previously received a restricted stock award (the “June 2014 Award”) for 64,816 shares (reflects the
number of post-merger shares after the Company’s May 22, 2015 merger) of Common Stock pursuant to the Restricted Stock Purchase
Agreement between the Employee and the Company effective as of June 16, 2014, as amended November 3, 2015 (the “June 2014
Award Agreement”). The June 2014 Award was granted under, and is subject to the terms of, the Company’s 2014 Stock
Plan (the “2014 Plan”). Under the June 2014 Award Agreement, 48,612 shares of Common Stock have already vested and
16,204 shares of Common Stock were scheduled to vest on June 16, 2018, subject to Employee’s continued employment with the
Company.

 

(ii)        
Employee previously received a restricted stock award (the “September 2014 Award”) for 97,225 shares (reflects
the number of post-merger shares after the Company’s May 22, 2015 merger) of Common Stock pursuant to the Restricted Stock
Purchase Agreement between the Employee and the Company effective as of September 9, 2014, as amended November 3, 2015 (the “September
2014 Award Agreement” and together with the June 2014 Award Agreement, the “2014 Award Agreements”). The September
2014 Award was granted under, and is subject to the terms of, the 2014 Plan. Under the September 2014 Award Agreement, 72,919 shares
of Common Stock have already vested (which number includes the 4,861 “holdback” shares of Common Stock represented
by certificate no. 1605) and 24,306 shares of Common Stock were scheduled to vest on September 9, 2018, subject to Employee’s
continued employment with the Company.

 

(iii)      
Employee previously received a restricted stock award (the “2015 Award”) for 38,000 shares of Common Stock pursuant
to the Restricted Stock Agreement between the Employee and the Company made as of October 5, 2015 (the “2015 Award Agreement”).
The 2015 Award was granted under, and is subject to the terms of, the Company’s 2015 Equity Incentive Plan (the “2015
Plan”). Under the 2015 Award Agreement, 19,000 shares of Common Stock were scheduled to vest on October 5, 2017 and 9,500
shares of Common Stock were scheduled to vest on each of October 5, 2018 and October 5, 2019, all subject to Employee’s continued
employment with the Company.

 

    2 

     

    

 

(iv)      
Employee previously received a restricted stock award (the “2016 Award”) for 20,000 shares of Common Stock pursuant
to the Restricted Stock Agreement between the Employee and the Company made as of August 11, 2016 (the “2016 Award Agreement”
and collectively with the 2014 Award Agreements and the 2015 Award Agreement, the “Award Agreements”). The 2016 Award
was granted under, and is subject to the terms of, the 2015 Plan. Under the 2016 Award Agreement, 10,000 shares of Common Stock
were scheduled to vest on August 11, 2018 and 5,000 shares of Common Stock were scheduled to vest on each of August 11, 2019 and
August 11, 2020.

 

(b)           Repurchase Option. The Company and Employee acknowledge and agree that: (i) the Employee is voluntarily terminating
his employment with the Company, without satisfying the definition of Good Reason (as defined in the 2015 Award Agreement and the
2016 Award Agreement); (ii) prior to the delivery or transfer of the Subject Shares, the Company shall require Employee to pay
the Company by wire transfer or cashier check the amount of any tax withholding obligations the Company must pay or remit on behalf
of the Employee as a result of the Company not exercising its repurchase option and Employee shall remain responsible at all times
for paying any federal, state, foreign and/or local income, employment or other tax due with respect to the Subject Shares; and
(iii) the Company will repurchase the remaining 39,000 unvested shares of Common Stock in accordance with the terms of the applicable
Award Agreements. Employee acknowledges that he is solely responsible and liable for the satisfaction of all taxes and penalties
that may arise in connection with the Company’s election not to repurchase the Subject Shares. Employee further acknowledges
and agrees that the Company shall have the right to reduce the amount of any payment or benefit otherwise payable to Employee by
the amount of any obligation of Employee to or on behalf of the Company that is or becomes due and payable.

 

(c)          
Amendments to Award Agreements. The Award Agreements are hereby amended to delete the provision requiring that all
transferees of shares underlying the Award Agreements, or other interest therein, receive and hold such shares or interest subject
to the provisions of the Award Agreements, the effect being that the transferees of any shares underlying the Award Agreements
shall receive such shares free from restrictions thereunder. The 2014 Award Agreements and the 2015 Award Agreement are hereby
further amended to provide that in the event Employee breaches any provisions of this Agreement or the Confidentiality Agreement
(as defined in Section 12 below) during the two-year period commencing on the Effective Date, the Company would have the right
to recover (or “clawback”) the Subject Shares (or the proceeds from the sale of any such Subject Shares), in each case
without the payment of any consideration for such Subject Shares. The Company may not exercise its clawback rights without first
providing to Employee a written notice setting forth the specific grounds upon which the claims are based and allowing Employee
the right to respond. The Company’s and Employee’s agreement to amend the Award Agreements shall be effective on the
day immediately following the Effective Date.

 

    3 

     

    

 

(d)           Expenses. Employee acknowledges and agrees that the Company shall not be responsible for arranging the transfer of
any shares of Common Stock held by Employee and that Employee shall be responsible for any and all expenses, including but not
limited to any legal expenses and attorneys’ fees incurred to obtain any required legal opinions, in connection with the
transfer of any shares of Common Stock held by Employee.

 

6.          
Lock-Up Agreement. Employee agrees that Employee will not, on or prior to the date the respective Subject Shares
would have been released from the repurchase option under the applicable Award Agreement had the Employee continued his employment
with the Company (the “Lock-Up Period”), sell, transfer, assign, pledge or otherwise encumber or dispose of such Subject
Shares without the Company’s prior written consent. Employee and Company agree that the Company shall continue to hold the
stock certificates representing the Subject Shares until expiration of each such Lock-Up Period.

 

7.          
Consideration. Employee acknowledges and agrees that the Severance described in Paragraph 2, the nature and scope
of which he would not otherwise have been entitled to receive from the Company, is of value to him, that such constitutes adequate
consideration for his promises and obligations herein and performance thereof; and that he is only entitled to such as a consequence
of the execution of this Agreement, as well as his full performance of the obligations hereunder.

 

8.          
Release of Claims.

 

(a)          
 Employee, for himself and for his heirs, successors and assigns, hereby forever discharges and releases the Company (including
its stockholders, directors, board members, officers, officials, employees, attorneys, and agents) and any of its parent companies,
affiliated companies, subsidiaries, predecessor companies, successors, or assigns (the “Released Parties”), and each
of them, from any and all claims, liabilities, actions or causes of action of any kind or character whatsoever, whether at law
or in equity, whether known or unknown, whether contingent or absolute. This general release and waiver of claims includes, without
limitation, claims for personal injuries, back pay, losses or damage to real or personal property, economic loss or damage of any
kind, breach of contract (express or implied), defamation, breach of any covenant of good faith (express or implied), tortious
interference with contract, wrongful termination, business or personal tort, misrepresentation, or any other losses or expenses
of any kind (whether arising in tort, contract or by statute) arising out of your employment relationship with, or separation from,
the Company and any other alleged acts or omissions by the Released Parties not expressly excluded herein.

 

    4 

     

    

 

(b)           Employee acknowledges that this general release and waiver of claims applies both to known and unknown claims that may exist
between Employee and the Released Parties. Employee expressly acknowledges and agrees that this release and waiver of claims includes,
but is not limited to, a release of any and all rights, claims, or causes of action arising under any employment or other agreement
(whether written, oral, or implied) or under any state or federal constitution, statute, law, rule, regulation, or common-law principle
of tort, contract or equity, except for the obligations of the Company under this Agreement. This general release and waiver of
claims specifically includes, but is not limited to, any claims or action under Title VII of the Civil Rights Act of 1964, as amended,
42 U.S.C. § 2000e, et seq., the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101, et seq.,
the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Family and Medical Leave Act, 29 U.S.C. §
2601, et seq., any common law or statutory claim of wrongful discharge, the Employee Retirement Income Security Act of 1974,
as amended, and any claims for any entitlement to any other payments, bonuses, commissions, reimbursements or attorneys’
fees pursuant to any contract or state or federal law.

 

(c)          
By entering into this Agreement, Employee understands and agrees that he does not waive (i) any rights or claims that he
might have which arise as a result of any conduct that occurs after he signs this Agreement, (ii) any rights or claims which cannot
be waived by law, or claims for continuation rights under COBRA, or (iii) any claims that by law cannot be waived in a private
agreement between employer and employee including (without limitation) the right to file a charge with or participate in an investigation
conducted by the Equal Employment Opportunity Commission (“EEOC”) or any state or local fair employment practices agency;
however, Employee waives any right to any monetary recovery or other relief should the EEOC or any other agency pursue a claim
on Employee’s behalf.

 

9.          
Successors and Assigns.  This Agreement and the rights and obligations of the parties hereunder will be binding
on and inure to the benefit of the parties’ respective successors, assigns, heirs, executors, administrators and legal representatives. 
The Company may assign any of its rights and obligations under this Agreement.  In the event of a Change of Control (as defined
in Section 5.2 of Employee’s prior Employment Agreement with the Company dated June 15, 2015 (the “Prior Employment
Agreement”)), Employee shall be entitled to receive consideration for any shares of Common Stock then owned by Employee,
including any Subject Shares then owned by Employee and any shares of Common Stock then owned by Employee but not yet delivered
to Employee by the Company, on the same terms and conditions as other stockholders of the Company.

 

    5 

     

    

 

10.          
Voluntary ADEA & OWBPA Waiver & Release. Employee specifically acknowledges, agrees, represents and warrants
that (a) Employee is aware that this Agreement releases claims including, but not limited to, all claims under the federal Age
Discrimination and Employment Act of 1967, as amended, 29 U.S.C. § 621, et seq., (“ADEA”), the Older Worker
Benefit Protection Act of 1967 (“OWBPA”) and any other state and local laws concerning age discrimination which may
have arisen prior to the date of this Agreement; (b) Employee has been given the opportunity to consider this Agreement for at
least twenty-one (21) days (“Consideration Period”) although he may sign it in less than twenty-one (21) days, if he
wishes to do so; (c) Employee has been advised to consult with an attorney prior to executing this Agreement; (d) Employee has
read and understands the terms and effect of this Agreement; (e) Employee agrees that, if he elects to sign this Agreement prior
to the expiration of the Consideration Period, his election has been made freely and voluntarily and after having had an opportunity
to consult an attorney; (f) Employee has signed this Agreement voluntarily and knowingly in exchange for the consideration described
herein, which Employee acknowledges and agrees is adequate and more than he is entitled to receive; (g) After Employee signs this
Agreement, regardless of when in those twenty-one (21) days that he does so, he will have 7 (seven) days to revoke his signature
by delivery of written notice before 11:59 p.m. of the seventh calendar day after execution of the Agreement (“Revocation
Period”) to John T. Kurtzweil, Akoustis Technologies, Inc., 9805 Northcorss Center Court, Suite H, Huntersville, NC 28078
/ jkurtzweil@akoustis.com; (h) this Agreement will become effective on the Effective Date and will not be enforceable by any party
until the Effective Date; (i) Employee will not receive the Severance in Paragraph 2 of Agreement until after the seventh day has
passed without Employee revoking the Agreement; (j) No attempted revocation after the expiration of such seven (7) day period shall
have any effect on the terms of this Agreement (k) If Employee does not sign this Agreement within 21 days, the terms it offers
will be automatically revoked and (l) any discussions, negotiations or exchanges of revised drafts of this Agreement will not extend
the 21 day consideration period from the time this Agreement in its original form is first given to Employee.

 

11.             
Return of the Company Property. Employee shall return any and all Company property in his possession, including but
not limited to, precious metals, process raw materials and supplies, mobile telephones, laptop computers, customer lists and contact
information, financial information, customer information, credit cards, keys to Company property, disks, hard drives, software
or other storage units containing Company data, to it no later than the date of this Agreement. By signing below, Employee agrees
that he has returned all Company property in his possession, and Employee also agrees that he has provided all passwords and access
information necessary to transition his duties.

 

12.             
Ongoing Confidentiality Obligations. Employee shall not at any time after the date of this Agreement disclose, use
or aid third parties in obtaining or using any confidential or proprietary Company information. Nothing in this Separation Agreement
and General Release shall relieve Employee from any obligations under any previously executed confidentiality, proprietary information
or secrecy agreement and Employee acknowledges that the Company retains the ability to enforce the terms of any such agreement.
Employee understands that he remains bound by the terms of the confidentiality provisions of the Company’s handbook, the
Employee’s prior Independent Contractor Agreement dated June 16, 2014, the Prior Employment Agreement, and the Letter Agreement
between the Company and Employee dated May 12, 2017 (collectively, the “Confidentiality Agreement”). Notwithstanding
the foregoing, Employee understands that: (a) nothing in this Agreement or other agreement prohibits Employee from reporting possible
violations of law or regulation to any federal, state, or local governmental agency or entity (the “Government Agencies”),
or communicating with Government Agencies or otherwise participating in any investigation or proceeding that may be conducted by
Government Agencies, including providing documents or other information; (b) Employee does not need the prior authorization of
the Company to take any action described in clause (a) immediately above, and that Employee is not required to notify the Company
that Employee has taken any action described in clause (a) immediately above; and (c) this Agreement does not limit Employee’s
right to receive an award for providing information relating to a possible securities law violation to the Securities and Exchange
Commission. Further, Employee understands that the Defend Trade Secrets Act of 2016 provides that an individual shall not be held
criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (a) is made
(i) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (ii)
solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document
filed in a lawsuit or other proceeding, if such filing is made under seal.

 

    6 

     

    

 

13.             
Non-Disparagement. Employee will not say, write or do anything to disparage or defame Company, its Board, directors,
employees, work, performance, affiliated entities, clients or vendors, nor will Employee say, write or do anything that may injure
or harm Company or its relationships with current or prospective employees, clients, vendors, or the public; except that nothing
herein shall prevent Employee from responding truthfully in any action to enforce this Agreement or when called upon by subpoena
or court order to testify or provide information in a legal or administrative proceeding. The Company shall instruct its executive
officers and directors not to say, write, or do anything to disparage or defame Employee, except that nothing herein shall prevent
the Company or its executive officers and directors from responding truthfully in any action to enforce this Agreement or when
called upon by subpoena or court order to testify or provide information in a legal or administrative proceeding. Employee should
direct any prospective employer to contact Lora Shealy for any needed employment reference, and any employment reference by the
Company shall consist of Employee’s dates of employment and his last position held. The Company shall not be responsible
for the content of references sought by Employee and obtained from any other Company owners, officers, or employees.

 

14.             
No Liability Admitted. Each party understands and agrees that this Agreement is intended to avoid and prevent future
litigation with respect to Employee’s employment and separation from employment with the Company and any other matter between
the parties, including the Released Parties. The Severance described in Paragraph 2 of this Agreement is not to be deemed or considered
an admission of liability or any wrongdoing. Both parties expressly deny all liability and wrongdoing.

 

15.             
Entire Agreement. This Agreement supersedes all other understandings and agreements, oral or written, between the
parties with respect to the subject matter, and constitutes the sole agreement between the parties with respect to the subject
matter hereof; provided, however, that the Award Agreements, to the extent not modified by this Agreement, and the
Confidentiality Agreement shall continue in full force and effect, and provided further that Section 6 of the Prior Employment
Agreement with the Company shall continue in full force and effect. Each party acknowledges that no representations, inducements,
promises or agreements, oral or written, have been made by any party or by anyone acting on behalf of any party, which are not
embodied in this Agreement, and that no agreement, statement or promise not contained in this Agreement shall be valid or binding
on the parties unless such change or modification is in writing and signed by the parties.

 

    7 

     

    

 

16.             
Governing Law. This Agreement is made and entered into in the State of North Carolina and shall in all respects be
construed, enforced, and governed in accordance with the laws of North Carolina, except as federal laws may apply.

 

17.             
Voluntary Agreement. Employee further states that he has carefully read the foregoing Agreement, that the terms are
fully understood, and that he voluntarily accepts these terms and signs the same as his own free will.

 

18.             
Severability. In the event that one or more of the provisions, or portions thereof, of this Agreement is determined
to be illegal or unenforceable, the remainder of this Agreement shall not be affected thereby, and each remaining provision or
portion thereof shall continue to be valid and effective and shall be enforceable to the fullest extent permitted by law.

 

[Signature page to follow.]

 

    8 

     

    

 

EMPLOYEE ACKNOWLEDGES
THAT HE HAS CAREFULLY READ THIS AGREEMENT AND UNDERSTANDS ALL OF ITS TERMS, INCLUDING THE FULL AND FINAL RELEASE OF CLAIMS SET
FORTH ABOVE. EMPLOYEE FURTHER ACKNOWLEDGES THAT HE HAS VOLUNTARILY ENTERED INTO THIS AGREEMENT AND THAT HE HAS NOT RELIED UPON
ANY REPRESENTATION OR STATEMENT, WRITTEN OR ORAL, NOT SET FORTH IN THIS AGREEMENT, AND THAT HE HAS BEEN GIVEN THE OPPORTUNITY
TO HAVE THIS AGREEMENT REVIEWED BY AN ATTORNEY.

	 	 	 	 
	 	Akoustis Technologies, Inc.
	 	 	 
	 	By:	/s/
    John T. Kurtzweil
	 	Name: John T. Kurtzweil
	 	Title:   Chief Financial Officer
	 	Date signed:	25 September
    2017
	 	 	 
	 	Employee
	 	 	 
	 	/s/
    Mark Boomgarden
	 	Mark Boomgarden
	 	Date signed:	9/28/2017

 

    9

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