Document:

Exhibit

10.5

 

THE SECURITIES EVIDENCED

HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, OR APPLICABLE

STATE SECURITIES LAW.  THESE SECURITIES

HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD,

ASSIGNED, TRANSFERRED, PLEDGED, ASSIGNED OR 

OTHERWISE DISPOSED OF, AND NO TRANSFER OF THE SECURITIES WILL BE MADE BY

THE COMPANY OR ITS TRANSFER AGENT, IN THE ABSENCE OF SUCH REGISTRATION OR AN

OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT

REQUIRED.

 

 

GRANITE CITY FOOD & BREWERY

LTD.

 

COMMON STOCK PURCHASE WARRANT

 

Granite City Food &

Brewery Ltd., a Minnesota corporation (the “Company”), hereby agrees that, for value

received, Aethlon Capital, LLC,

Minneapolis, Minnesota, or its assigns, is entitled, subject to the terms set

forth below, to purchase from the Company at any time or from time to time

after the date hereof and before 5:00 P.M., Central Time, on

                  , 2007,

                                                       

(                )

shares of the common stock of the Company (the “Common Stock”), at an

exercise price of $1.58 per share, subject to adjustment as provided herein

(the “Warrant

Exercise Price”).

 

1.             Exercise of Warrant.  The purchase rights granted by this Warrant shall be exercised

(in minimum quantities of 100 shares) by the holder surrendering this Warrant

with the form of exercise attached hereto duly executed by such holder, to the

Company at its principal office, accompanied by payment, in cash or by cashier’s

check payable to the order of the Company, of the purchase price payable in

respect of the Common Stock being purchased. 

If less than all of the Common Stock purchasable hereunder is purchased,

the Company will, upon such exercise, execute and deliver to the holder hereof

a new Warrant (dated the date hereof) evidencing the number of shares of Common

Stock not so purchased.  As soon as

practicable after the exercise of this Warrant and payment of the purchase

price, the Company will cause to be issued in the name of and delivered to the

holder hereof, or as such holder may direct, a certificate or certificates

representing the shares purchased upon such exercise.  The Company may require that such certificate or certificates

contain on the face thereof a legend substantially as follows:

 

“The transfer of the shares

represented by this certificate is restricted pursuant to the terms of a Common

Stock Purchase Warrant dated

                     ,

2002, issued by Granite City Food & Brewery Ltd., a copy of which is

available for inspection at the offices of Granite City Food & Brewery

Ltd.  Transfer may not be made except in

accordance with the terms of the Common Stock Purchase Warrant.  In addition, no sale, offer to sell or

transfer of the shares represented by this certificate shall be made unless a

registration statement under the Securities Act of 1933, as amended, with

respect to such shares is then in effect or an exemption from registration is

then in fact applicable to such shares.”

 

2.             Negotiability and Transfer. 

This Warrant is issued upon the following terms, to which each holder

hereof consents and agrees:

 

(a)           Until this Warrant is duly

transferred on the books of the Company, the Company may treat the registered

holder of this Warrant as absolute owner hereof for all purposes without being

affected by any notice to the contrary.

 

(b)           Each successive holder of this

Warrant, or of any portion of the rights represented thereby, shall be bound by

the terms and conditions set forth herein.

 

 

(c)           This Warrant is immediately

assignable, notwithstanding anything herein to the contrary, to officers,

directors, employees, consultants and registered representatives of Aethlon

Capital, LLC and its affiliates, sub-agent(s) of Aethlon Capital, LLC, and

officers, directors, employees, consultants and registered representatives of

the sub-agent(s) of Aethlon Capital, LLC.

 

3.             Antidilution

Adjustments.

 

(a)           The Warrant Exercise Price shall be

subject to adjustment from time to time as hereinafter provided.  Upon each adjustment of the Warrant Exercise

Price the holder of this Warrant shall thereafter be entitled to purchase the

number of shares of Common Stock of the Company obtained by multiplying the

Warrant Exercise Price in effect immediately prior to such adjustment by the

number of shares issuable pursuant to exercise immediately prior to such

adjustment and dividing the product thereof by the Warrant Exercise Price

resulting from such adjustment.

 

(b)           Except for (i) options, warrants or

other rights to purchase securities outstanding on the date of the issuance of

this Warrant (provided there is no adjustment to the terms of such options,

warrants or other securities on or after the date of issuance of this Warrant);

(ii) options to purchase shares of Common Stock and the issuance of awards of

Common Stock pursuant to stock option or employee stock purchase plans adopted

by the Company and shares of Common Stock issued upon the exercise of such

options granted pursuant to such plans (provided there is no adjustment to the

terms of such options, awards or other securities on or after the date of

issuance of this Warrant) (appropriately adjusted to reflect stock splits,

combinations, stock dividends, reorganizations, consolidations and similar

changes); or (iii) Common Stock issued to holders of the Company’s Series A

Convertible Preferred Stock or upon conversion or in lieu of cash dividends on

the Company’s Series A Convertible Preferred Stock, if and whenever the Company

shall issue any additional securities, warrants or rights or any security

convertible or exchangeable into equity, securities, warrants or rights

(collectively, “Convertible Securities”) without consideration or for a

consideration per share less than the Warrant Exercise Price in effect immediately

prior to the time of such issue or sale, then, forthwith upon such issue or

sale, the Warrant Exercise Price shall be adjusted to a price determined by

multiplying such Warrant Exercise Price by a fraction, the numerator of which

shall be the number of shares of Common Stock outstanding immediately prior to

such issuance plus the number of shares of Common Stock that the aggregate

consideration received by the Company for such issuance would purchase at such

Warrant Exercise Price; and the denominator of which shall be the number of

shares of such additional Common Stock and the number of shares of Common Stock

outstanding prior to such issuance.  For

the purpose of the above calculation, the number of shares of Common Stock

immediately prior to such issuance shall be calculated on a fully-diluted

basis, as if this Warrant and any other outstanding warrants, options or other

rights for the purchase of shares of stock or Convertible Securities had been

fully exercised as of such date.  Except

as provided in Section 3(e) below, no further adjustments of the Warrant

Exercise Price shall be made upon the actual issuance of Common Stock or of any

Convertible Securities upon the exercise of such rights or options or upon the

actual issue of such Common Stock upon conversion or exchange of such

Convertible Securities.

 

(c)           For purposes of this Section 3,

in case any shares of Common Stock or Convertible Securities or any rights or

options to purchase any such Common Stock or Convertible Securities shall be

issued or sold for cash, the consideration received therefor shall be deemed to

be the amount received by the Company therefor, without deducting therefrom any

expenses incurred or any underwriting commissions, discounts or concessions

paid or allowed by the Company in connection therewith.  In case any shares of Common Stock or

Convertible Securities or any rights or options to purchase any such Common

Stock or Convertible Securities shall be issued or sold for a consideration

other than cash, the amount of the consideration other than cash received by

the Company shall be deemed to be the fair value of such consideration as

determined by the Board of Directors of the Company, without deducting

therefrom any expenses incurred or any underwriting commissions, discounts or

concessions paid or allowed by the Company in connection therewith.  In case any shares of Common Stock 

 

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or Convertible Securities or

any rights or options to purchase such Common Stock or Convertible Securities

shall be issued in connection with any merger or consolidation in which the

Company is the surviving corporation, the amount of consideration therefor

shall be deemed to be the fair value as determined by the Board of Directors of

the Company of such portion of the assets and business of the non-surviving

corporation or corporations as such Board shall determine to be attributable to

such Common Stock, Convertible Securities, rights or options, as the case may

be.  In the event of any consolidation

or merger of the Company in which the Company is not the surviving corporation

or in the event of any sale of all or substantially all of the assets of the

Company for stock or other securities of any other corporation, the Company

shall be deemed to have issued a number of shares of its Common Stock for stock

or securities of the other corporation computed on the basis of the actual

exchange ratio on which the transaction was predicated and for a consideration

equal to the fair market value on the date of such transaction of such stock or

securities of the other corporation, and if any such calculation results in

adjustment of the Warrant Exercise Price, the determination of the number of

shares of Common Stock issuable upon exercise immediately prior to such merger,

conversion or sale, for purposes of Section 3(f) below, shall be made

after giving effect to such adjustment of the Warrant Exercise Price.

 

(d)           In case the Company shall at any time

subdivide its outstanding shares of Common Stock into a greater number of

shares, the Warrant Exercise Price in effect immediately prior to such

subdivision shall be proportionately reduced, and conversely, in case the

outstanding shares of Common Stock of the Company shall be combined into a

smaller number of shares, the Warrant Exercise Price in effect immediately

prior to such combination shall be proportionately increased.

 

(e)           If (i) the purchase price provided

for in any right or option referred to in Section 3(b), or (ii) the

additional consideration, if any, payable upon the conversion or exchange of

Convertible Securities, or (iii) the rate at which any Convertible Securities

are convertible into or exchangeable for Common Stock, shall change at any time

(other than under or by reason of provisions designed to protect against

dilution), or any Convertible Securities shall terminate, expire or cease to be

outstanding without exercise thereof, the Warrant Exercise Price then in effect

hereunder shall forthwith be increased or decreased to such Warrant Exercise

Price as would have applied had the adjustments made upon the issuance of such

rights, options or Convertible Securities been made upon the basis of

(a) the issuance of the number of shares of Common Stock theretofore

actually delivered upon the exercise of such options or rights or upon the

conversion or exchange of such Convertible Securities, and the total

consideration received therefor, and (b) the issuance at the time of such

change of any such options, rights, or Convertible Securities then still

outstanding for the consideration, if any, received by the Company therefor and

to be received on the basis of such changed price; and on the expiration of any

such option or right or the termination of any such right to convert or

exchange such Convertible Securities, the Warrant Exercise Price then in effect

hereunder shall forthwith be increased to such Warrant Exercise Price as would

have been obtained had the adjustments made upon the issuance of such rights or

options or Convertible Securities been made upon the basis of the issuance of

the shares of Common Stock theretofore actually delivered (and the total

consideration received therefor) upon the exercise of such rights or options or

upon the conversion or exchange of such Convertible Securities.  If the purchase price provided for in any

right or option referred to in Section 3(b), or the rate at which any

Convertible Securities referred to in Section 3(b) are convertible into or

exchangeable for Common Stock, shall decrease at any time under or by reason of

provisions with respect thereto designed to protect against dilution, then in

case of the delivery of Common Stock upon the exercise of any such right or

option or upon conversion or exchange of any such Convertible Security, the

Warrant Exercise Price then in effect hereunder shall forthwith be decreased to

such Warrant Exercise Price as would have applied had the adjustments made upon

the issuance of such right, option or Convertible Security been made upon the

basis of the issuance of (and the total consideration received for) the shares

of Common Stock delivered as aforesaid.

 

(f)            If any capital reorganization or

reclassification of the capital stock of the Company, or consolidation or

merger of the Company with another corporation, or the sale of all or

substantially all of its assets to another corporation shall be effected in

such a way that holders of Common Stock

 

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shall be entitled to receive

stock, securities or assets with respect to or in exchange for Common Stock,

then, as a condition of such reorganization, reclassification, consolidation,

merger or sale, and except as otherwise provided herein, lawful and adequate

provision shall be made whereby the holder of this Warrant shall thereafter

have the right to receive upon the basis and upon the terms and conditions

specified herein and in lieu of the shares of the Common Stock of the Company

immediately theretofore receivable upon the exercise of this Warrant, such

shares of stock, securities or assets as may be issued or payable with respect

to or in exchange for a number of outstanding shares of such Common Stock equal

to the number of shares of such stock immediately theretofore receivable upon

the exercise of this Warrant had such reorganization, reclassification,

consolidation, merger or sale not taken place, and in any such case appropriate

provision shall be made with respect to the rights and interests of the holder

of this Warrant to the end that the provisions hereof (including without

limitation provisions for adjustments of the Warrant Exercise Price and of the

number of shares receivable upon the exercise hereof) shall thereafter be

applicable, as nearly as may be in relation to any shares of stock, securities

or assets thereafter receivable upon the exercise of this Warrant.  The Company shall not effect any such

consolidation, merger or sale, unless prior to the consummation thereof the

successor corporation (if other than the Company) resulting from such

consolidation or merger or the corporation purchasing such assets shall assume

by written instrument executed and mailed to the registered holder of this

Warrant, at the last address of such holder appearing on the books of the

Company, the obligation to deliver to such holder such shares of stock,

securities or assets as, in accordance with the foregoing provisions, such

holder may be entitled to receive.

 

(g)           Upon any adjustment of the Warrant

Exercise Price, the Company shall give written notice thereof, by first-class

mail, postage prepaid, addressed to the registered holder of this Warrant, as

shown on the books of the Company, which notice shall state the Warrant

Exercise Price resulting from such adjustment and the increase or decrease, if

any, in the number of shares purchasable at such price upon the exercise of

this Warrant, setting forth in reasonable detail the method of calculation and

the facts upon which such calculation is based.  No adjustment to the Warrant Exercise Price shall be required

unless such adjustment would require an increase or decrease of at least five

cents ($0.05); provided, however, that any adjustments which by reason of this

Section 3(g) are not required to be made shall be carried forward and

taken into account in any subsequent adjustment; and, provided further, that

adjustment shall be required and made in accordance with the provisions of this

Section 3 (other than this Section 3(g)) not later than such time as

may be required in order to preserve the tax-free nature of a distribution to

the holders of shares of Common Stock. 

All calculations under this Section 3 shall be made to the nearest

cent or to the nearest one-hundredth of a share, as the case may be.  Anything in this Section 3 to the

contrary notwithstanding, the Company shall be entitled to make such increases

in the conversion rate in addition to those required by this Section 3 as

it in its discretion shall determine to be advisable in order that any stock

dividends, subdivisions of shares, distribution of rights to purchase stock or

securities, or distribution of securities convertible into or exchangeable for

stock hereafter made by the Company to its stockholders shall not be taxable.

 

(h)  In case at any time: (i) there shall be any

capital reorganization, or reclassification of the capital stock of the

Company, or consolidation or merger of the Company with, or sale of all or

substantially all of its assets to, another corporation; or (ii) there shall be

a voluntary or involuntary dissolution, liquidation or winding up of the

Company; then, in any one or more of said cases, the Company shall give written

notice, by first–class mail, postage prepaid, addressed to the registered

holder of this Warrant at the address of such holder as shown on the books of

the Company, of the date on which (a) the books of the Company shall close

or a record shall be taken for such dividend, distribution or subscription

rights, or (b) such reorganization, reclassification, consolidation, merger,

sale, dissolution, liquidation or winding up shall take place, as the case may

be.  Such notice shall also specify the

date as of which the holders of Common Stock of record shall participate in

such dividend, distribution or subscription rights, or shall be entitled to

exchange their Common Stock for securities or other property deliverable upon

such reorganization, reclassification, consolidation, merger, sale,

dissolution, liquidation, or winding up, as the case may be.  Such written notice shall be given at least

 

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twenty (20) days prior to

the action in question and not less than twenty (20) days prior to the record

date or the date on which the Company’s transfer books are closed in respect

thereto.

 

(i)            If any event occurs as to which in

the opinion of the Board of Directors of the Company the other provisions of

this Section 3 are not strictly applicable or if strictly applicable would

not fairly protect the rights of the holder of this Warrant in accordance with

the essential intent and principles of such provisions, then the Board of

Directors shall make an adjustment in the application of such provisions, in

accordance with such essential intent and principles, so as to protect such

rights as aforesaid.

 

(j)            As used in this Section 3 the

term “Common Stock” shall mean and include the Company’s presently authorized

Common Stock and any additional Common Stock that may be authorized by due

action of the Company’s Board of Directors and shareholders entitled to vote

thereon.

 

(k)           No fractional shares of Common Stock

shall be issued upon exercise, but, instead of any fraction of a share which

would otherwise be issuable, the Company shall pay a cash adjustment in respect

of such fraction in an amount equal to the same fraction of the market price per

share of Common Stock as of the close of business on the day of exercise.  “Market price” shall mean if the Common

Stock is traded on a securities exchange or on the NASDAQ Stock Market, the

closing sale price of the Common Stock on such exchange or the NASDAQ Stock

Market, or, if the Common Stock is otherwise traded in the over-the-counter

market, the closing bid price, in each case averaged over a period of twenty

(20) consecutive trading days prior to the date as of which “market price” is

being determined.  If at any time the

Common Stock is not traded on an exchange or the NASDAQ Stock Market, or

otherwise traded in the over-the-counter market, the “market price” shall be

deemed to be the higher of (i) the book value thereof as determined by any

firm of independent public accountants of recognized standing selected by the

Board of Directors of the Company as of the last day of any month ending within

sixty (60) days preceding the date as of which the determination is to be made,

or (ii) the fair value thereof determined in good faith by the Board of

Directors of the Company as of a date which is within fifteen (15) days of the

date as of which the determination is to be made.

 

4.             Transferability; Registration Rights. 

Prior to making any disposition of the Warrant or of any Common Stock

purchased upon exercise of the Warrant, the holder will give written notice to

the Company describing briefly the manner of any such proposed

disposition.  The holder will not make any

such disposition until (i) the Company has notified the holder that, in the

opinion of its counsel, registration under the Act is not required with respect

to such disposition, or (ii) a registration statement covering the proposed

distribution has been filed by the Company and has become effective.  The holder then will make any disposition

only pursuant to the conditions of such opinion or registration.  The Company agrees that, upon receipt of

written notice from the holder hereof with respect to such proposed

distribution, it will use its best efforts, in consultation with the holder’s

counsel, to ascertain as promptly as possible whether or not registration is

required, and will advise the holder promptly with respect thereto, and the

holder will cooperate in providing the Company with information necessary to

make such determination.  If a state and

federal registration of the  Common

Stock purchased upon exercise of the Warrant is not in effect such that the  Common Stock purchased upon exercise of the

Warrant is not freely transferable by the holder of the Warrant or, in the

absence of such an effective state and federal registration, if an exemption

from state and federal registration of the exercising of the Warrant and sale

of the Common Stock is not available during the term of this Warrant when the

holder of the Warrant seeks to exercise the Warrant and sell the Common Stock

so acquired, the exercise period of the Warrant will automatically be extended

until such time as either state and federal registration of the Common Stock

purchased upon exercise of the Warrant becomes effective and applicable to the

holder of the Warrant or an exemption for the exercise of the Warrant and sale

of the Common Stock by the holder, in the absence of such an effective state

and federal registration, is available to the holder of the Warrant, and, if so

extended, the Warrant shall then remain exercisable for a period of at least

thirty (30) calendar days from the date the Company delivers to the holder of

the Warrant written notice of the availability of such state and federal

 

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registration or exemption from such

registration.  In no event will the

exercise period of the Warrant expire before

                 ,

2007.

 

If, at any time after the

date hereof and prior to the expiration of seven (7) years from the date

hereof, the Company shall propose to file any registration statement under the

Securities Act of 1933, as amended, (the “Act”) covering a public offering of the

Company’s Common Stock (other than a registration on Form S-4, Form S-8 or any

registration form that does not permit secondary sales), it will notify the

holder hereof at least thirty (30) days prior to each such filing and will

include in the registration statement (to the extent permitted by applicable

regulation) the Common Stock purchased by the holder or purchasable by the

holder upon the exercise of the Warrant to the extent requested by the holder

hereof.  Notwithstanding the foregoing,

the number of shares of Common Stock of the holders of the Warrants proposed to

be registered thereby shall be reduced pro rata with any other selling

shareholder (other than the Company) upon the request of the managing

underwriter of such offering.  If the registration

statement or offering statement filed pursuant to such thirty (30) day notice

has not become effective within six months following the date such notice is

given to the holder hereof, the Company must again notify such holder in the

manner provided above.

 

At any time one (1) year after

the date hereof and prior to the expiration of five (5) years from the date

hereof, and provided that a registration statement on Form S-3 (or its

equivalent) is then available to the Company, and on a one-time basis only, if

the holders of 51% or more of the Warrants and the shares of Common Stock

acquired upon exercise of the Warrants request the registration of the shares

of Common Stock on Form S-3 (or its equivalent), the Company shall promptly

thereafter use its best efforts to effect the registration under the Act of all

such shares of Common Stock which such holders request in writing to be so

registered, and in a manner corresponding to the methods of distribution

described in such holders’ request.

 

All expenses of any such

registrations referred to in this Section 4, except the fees of counsel to such

holders and any of their underwriting commissions or discounts shall be borne

by the Company.

 

The Company will mail to

each record holder, at the last known post office address, written notice of any

exercise of the rights granted under this Section 4, by certified or registered

mail, return receipt requested, and each holder shall have twenty (20) days

from the date of deposit of such notice in the U.S. Mail to notify the Company

in writing whether such holder wishes to join in such exercise.

 

The Company

will furnish the holder hereof with a reasonable number of copies of any

prospectus included in such filings and will amend or supplement the same as

required during the period of required use thereof.  The Company will maintain the effectiveness of any registration

statement or the offering statement filed by the Company, whether or not at the

request of the holder hereof, for at least one (1) year following the effective

date thereof.

 

In the case of the filing of

any registration statement, and to the extent permissible under the Act and

controlling precedent thereunder, the Company and the holder hereof shall

provide cross indemnification agreements to each other in customary scope

covering the accuracy and completeness of the information furnished by each.

 

The holder of the Warrant

agrees to cooperate with the Company in the preparation and filing of any such

registration statement or offering statement, and in the furnishing of

information concerning the holder for inclusion therein, or in any efforts by

the Company to establish that the proposed sale is exempt under the Act as to

any proposed distribution.

 

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5.             Cashless

Exercise Option.

 

(a)           The holder of this Warrant shall have the right to require the Company

to convert this Warrant (the “Conversion Right”), at any time after it

is exercisable, but prior to its expiration, into shares of Common Stock as

provided for in this Section 5. 

Upon exercise of the Conversion Right, the Company shall deliver to the

holder (without payment by the holder of any exercise price) that number of

shares of Common Stock equal to the quotient obtained by dividing (x) the value

of the Warrant at the time the Conversion Right is exercised (determined by

subtracting the aggregate exercise price for the Warrant in effect immediately

prior to the exercise of the Conversion Right from the aggregate Fair Market

Value (as determined below) for the Warrant immediately prior to the exercise

of the Conversion Right) by (y) the Fair Market Value of one share of Common

Stock immediately prior to the exercise of the Conversion Right.  No fractional shares shall be issuable upon

exercise of the Conversion Right, and if the number of shares to be issued in

accordance with the foregoing formula is other than a whole number, the Company

shall pay to the holder of this Warrant an amount in cash equal to the fair

market value of the resulting fractional share.

 

(b)           The Conversion Right may be exercised by the holder, at any time or

from time to time after this Warrant is exercisable, prior to its expiration,

on any business day, by delivering a written notice in the form attached hereto

(the “Conversion

Notice”) to the Company at the offices of the Company exercising the

Conversion Right and specifying (i) the total number of shares of Stock the

holder of this Warrant will purchase pursuant to such conversion, and (ii) a

place, and a date not less than one (1) nor more than twenty (20) business days

from the date of the Conversion Notice for the closing of such purchase.

 

(c)           At any closing under Section 5(b) hereof, (i) the holder will surrender

the Warrant, (ii) the Company will deliver to the holder a certificate or

certificates for the number of shares of Common Stock issuable upon such

conversion, together with cash in lieu of any fraction of a share, and (iii)

the Company will deliver to the holder a new Warrant representing the number of

shares, if any, with respect to which the Warrant shall not have been

converted.

 

(d)           “Fair Market

Value” of a share of Common

Stock as of a particular date (the “Determination Date”) shall mean:

 

(i)            If the Company’s Common Stock is

traded on an exchange or is quoted on The National Association of Securities

Dealers, Inc. Automated Quotation (“Nasdaq”) National Market, or The Nasdaq

SmallCap Market, then the average closing or last sale prices, respectively,

reported for the ten (10) business days immediately preceding the Determination

Date.

 

(ii)           If the Company’s Common Stock is not

traded on an exchange or on The Nasdaq National Market, or The Nasdaq SmallCap

Market, but is traded in the over-the-counter market, then the average of the

closing bid and asked prices reported for the ten (10) business days

immediately preceding the Determination Date.

 

(iii)          If the Company’s Common Stock is not

publicly traded and there has been a bona fide sale for cash on an arm’s-length

basis within 45 days prior to the Determination Date of such Common Stock by the

Company privately to one or more investors unaffiliated with the Company (a

“Qualifying Sale”), then the most recent such sales price.

 

(iv)          If the Company’s Common Stock is not

publicly traded and there has been no Qualifying Sale, then the appraised fair

market value of such stock, as determined by mutual agreement of the Company

and the holder of the Warrant; or if the parties cannot agree to such

valuation, then the Board of Directors, acting in good faith, shall determine

the Fair Market Value.

 

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6.             Notices. 

The Company shall mail to the registered holder of the Warrant, at his

last known post office address appearing on the books of the Company, not less

than fifteen (15) days prior to the date on which (a) a record will be taken

for the purpose of determining the holders of Common Stock entitled to

dividends (other than cash dividends) or subscription rights, or (b) a record

will be taken (or in lieu thereof, the transfer books will be closed) for the

purpose of determining the holders of Common Stock entitled to notice of and to

vote at a meeting of stockholders at which any capital reorganization,

reclassification of shares of Common Stock, consolidation, merger, dissolution,

liquidation, winding up or sale of substantially all of the Company’s assets

shall be considered and acted upon.

 

7.             Reservation of Common Stock.  A number of shares of Common Stock

sufficient to provide for the exercise of the Warrant upon the basis herein set

forth shall at all times be reserved for the exercise thereof.

 

8.             Miscellaneous. 

Whenever reference is made herein to the issue or sale of shares of

Common Stock, the term “Common Stock” shall include any stock of

any class of the Company other than preferred stock with a fixed limit on

dividends and a fixed amount payable in the event of any voluntary or

involuntary liquidation, dissolution or winding up of the Company.

 

The Company will not, by

amendment of its Articles of Incorporation or through reorganization, consolidation,

merger, dissolution or sale of assets, or by any other voluntary act or deed,

avoid or seek to avoid the observance or performance of any of the covenants,

stipulations or conditions to be observed or performed hereunder by the

Company, but will, at all times in good faith, assist, insofar as it is able,

in the carrying out of all provisions hereof and in the taking of all other

action which may be necessary in order to protect the rights of the holder

hereof against dilution.

 

Upon written request of the

holder of this Warrant, the Company will promptly provide such holder with a

then current written list of the names and addresses of all holders of warrants

originally issued under the terms of, and concurrent with, this Warrant.

 

The representations,

warranties and agreements herein contained shall survive the exercise of this

Warrant.  References to the “holder of”

include the immediate holder of shares purchased on the exercise of this

Warrant, and the word “holder” shall include the plural thereof.  This Common Stock Purchase Warrant shall be

interpreted under the laws of the State of Minnesota.

 

All shares of Common Stock

or other securities issued upon the exercise of the Warrant shall be validly

issued, fully paid and non-assessable.

 

Notwithstanding anything

contained herein to the contrary, the holder of this Warrant shall not be

deemed a stockholder (including, no right to vote on any matters coming before

the shareholders) of the Company for any purpose whatsoever until and unless

this Warrant is duly exercised.

 

IN WITNESS WHEREOF, this Warrant has been duly executed by

Granite City Food & Brewery Ltd., this

           day of

                                    ,

2002.

 

	

   

  	

  GRANITE CITY FOOD & BREWERY LTD.

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

  Name: Steven J. Wagenheim

  
	

   

  	

  Title: President and Chief Executive Officer

  

 

8

 

WARRANT

EXERCISE FORM

 

To be signed only upon exercise of Warrant.

 

The undersigned, the holder of the within Warrant, hereby irrevocably

elects to exercise the purchase right represented by such Warrant for, and to

purchase thereunder,

                             

of the shares of Common Stock of Granite City Food & Brewery Ltd. to which

such Warrant relates and herewith makes payment of

$                     

therefor in cash or by certified check, and requests that such shares be issued

and be delivered to

                                                 ,

the address for which is set forth below the signature of the undersigned.

 

	

  Dated:

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  (Taxpayer’s I.D. Number)

  	

   

  	

  (Signature)

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  (Address)

  
						

 

9

 

ASSIGNMENT

FORM

 

To be signed only upon authorized transfer of Warrant.

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and

transfers unto

                                         

the right to purchase shares of Common Stock of Granite City Food & Brewery

Ltd. to which the within Warrant relates and appoints

                                                 ,

attorney, to transfer said right on the books of Granite City Food &

Brewery Ltd. with full power of substitution in the premises.

 

	

  Dated:

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  (Signature)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  (Address)

  

 

10

 

CASHLESS EXERCISE

FORM

 

(To be executed upon exercise of Warrant pursuant to Section 5)

 

To:  

Granite City Food & Brewery Ltd.

 

The undersigned hereby irrevocably elects a cashless exercise of the

right of purchase represented by the within Common Stock Purchase Warrant for,

and to purchase thereunder,

                              

shares of Common Stock, as provided for in Section 5 therein.

 

If said number of shares shall not be all the shares purchasable under

the within Common Stock Purchase Warrant, a new Warrant is to be issued in the

name of said undersigned for the balance remaining of the shares purchasable

thereunder rounded up to the next higher number of shares.

 

Please issue a certificate or certificates for such Common Stock in the

name of, and pay any cash for any fractional shares to:

 

 

	

  NAME

  	

   

  
	

   

  	

  (Please Print

  Name)

  
	

   

  	

   

  
	

  ADDRESS

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  SOCIAL SECURITY NO.

  	

   

  
	

   

  	

   

  
	

  SIGNATURE

  	

   

  
			

 

 

	

   

  	

  NOTE:  The above signature should correspond

  exactly with the name on the first page of this Common Stock Purchase Warrant

  or with the name of the assignee appearing in the assignment form on the

  preceding page.

  

 

11Exhibit

10.24

 

QUICKLOGIC

CORPORATION

 

INDEMNIFICATION

AGREEMENT

 

This Indemnification Agreement (“Agreement”) is made as of

this       day of

                   ,

       , by and between QuickLogic Corporation,

a Delaware corporation (the “Company”), and                                         

(“Indemnitee”).

 

WHEREAS, the Company and Indemnitee

recognize the significant cost of directors’ and officers’ liability insur­ance

and the general reductions in the coverage of such insurance;

 

WHEREAS, the Company and Indemnitee

further recognize the substantial increase in corporate litigation in general,

subjecting officers and directors to expensive litigation risks at the same

time as the coverage of liability insurance has been severely limited; and

 

WHEREAS, the Company desires to

attract and retain the services of highly qualified individuals, such as

Indemnitee, to serve as officers and directors of the Company and to indemnify

its officers and directors so as to provide them with the maximum protection permitted

by law.

 

NOW, THEREFORE, in consideration for

Indemnitee’s services as an officer or director of the Company, the Company and

Indemnitee hereby agree as follows:

 

1.     Indemnification.

 

(a)   Third Party Proceedings.  The Company shall indem­nify Indemnitee if

Indemnitee is or was a party or is threatened to be made a party to any

threatened, pending or completed action, suit, proceeding or any alternative

dispute resolution mechanism, whether civil, criminal, administrative or

investigative (other than an action by or in the right of the Company) by

reason of the fact that Indemnitee is or was a director, officer, employee or

agent of the Company, or any subsidiary of the Company, or by reason of the

fact that Indemnitee is or was serving at the request of the Company as a

director, officer, employee or agent of another corpo­ra­tion, partnership,

joint venture, trust or other enterprise, against expenses (including

attorneys’ fees), judgments, fines and amounts paid in settlement (if such

settlement is approved in advance by the Company, which approval shall not be

unreasonably withheld) actually and reason­ably incurred by Indemnitee in

connection with such action, suit or proceeding if Indemnitee acted in good

faith and in a manner Indem­nitee reasonably believed to be in or not opposed

to the best interests of the Company, and, with respect to any criminal action

or proceeding, had no reasonable cause to believe Indemnitee’s conduct was

unlawful.  The termina­tion of any

action, suit or proceeding by judgment, order, settle­ment, conviction, or upon

a plea of nolo

contendere or its equiva­lent, shall not, of itself, create a

presumption that Indemnitee did not act in good faith and in a manner which

Indemnitee reasonably believed to be in or not opposed to the best interests of

the Company, and, with respect to any 

 

 

criminal action or proceeding, had reasonable cause to

believe that Indemnitee’s conduct was unlawful.

 

(b)   Proceedings By or in the Right of the Company.  The Company shall indemnify Indemnitee if

Indemnitee was or is a party or is threatened to be made a party to any

threatened, pending or completed action or suit by or in the right of the

Company or any subsidiary of the Company to procure a judgment in its favor by

reason of the fact that Indemnitee is or was a director, officer, employee or

agent of the Company, or any subsidiary of the Company, or by reason of the

fact that Indemnitee is or was serving at the request of the Company as a

director, officer, employee or agent of another corporation, partnership, joint

venture, trust or other enterprise, against expenses (including attorneys’

fees) and, to the fullest extent permitted by law, amounts paid in settlement

actually and reasonably incurred by Indemnitee in connection with the defense

or settlement of such action or suit if Indemnitee acted in good faith and in a

manner Indemnitee reasonably believed to be in or not opposed to the best

interests of the Company, except that no indemnification shall be made in

respect of any claim, issue or matter as to which Indem­nitee shall have been

adjudged to be liable to the Company unless and only to the extent that the

Court of Chancery of the State of Delaware or the court in which such action or

suit was brought shall determine upon application that, despite the

adjudication of liability but in view of all the circumstances of the case,

Indem­nitee is fairly and reasonably entitled to indemnity for such expenses

which the Court of Chancery of the State of Delaware or such other court shall

deem proper.

 

(c)   Mandatory Payment of Expenses.  To the extent that Indemnitee has been

successful on the merits or otherwise in defense of any action, suit or

proceeding referred to in Subsec­tions (a) and (b) of this Section 1,

or in defense of any claim, issue or matter therein, Indemnitee shall be

indemnified against expenses (including attorneys’ fees) actually and

reasonably incurred by Indemnitee in connection therewith.

 

2.     Agreement to Serve.  In consideration of the protection afforded

by this Agreement, if Indemnitee is a director of the Company he agrees to

serve at least for the 90 days after the effective date of this Agreement as a

director and not to resign voluntarily during such period without the written

consent of a majority of the Board of Directors. If Indemnitee is an officer of

the Company not serving under an employment contract, he agrees to serve in

such capacity at least for 90 days and not to resign voluntarily during such

period without the written consent of a majority of the Board of

Directors.  Following the applicable

period set forth above, Indemnitee agrees to continue to serve in such capacity

at the will of the Company (or under separate agreement, if such agreement

exists) so long as he is duly appointed or elected and qualified in accordance

with the applicable provisions of the Bylaws of the Company or any subsi­diary

of the Company or until such time as he tenders his resigna­tion in

writing.  Nothing contained in this

Agreement is intended to create in Indemnitee any right to continued

employment.

 

3.     Expenses; Indemnification Procedure.

 

(a)   Advancement of Expenses.  The Company shall advance all expenses

incurred by Indemnitee in connection with the investigation, defense,

settlement or appeal of any civil or criminal action, suit or proceeding

referenced in Section 1(a) or (b) hereof (but not amounts actually 

 

2

 

paid in settlement of any such action, suit or

proceeding).  Indemnitee hereby

undertakes to repay such amounts advanced only if, and to the extent that, it

shall ulti­mately be determined that Indemnitee is not entitled to be indem­nified

by the Company as authorized hereby. 

The advances to be made hereunder shall be paid by the Company to

Indemnitee within thirty (30) days following delivery of a written request

therefor by Indemnitee to the Company.

 

(b)   Notice/Cooperation by Indemnitee.  Indemnitee shall, as a condition precedent

to his right to be indemnified under this Agreement, give the Company notice in

writing as soon as practic­able of any claim made against Indemnitee for which

indemnifica­tion will or could be sought under this Agreement.  Notice to the Com­pany shall be directed to

the President of the Company at the address shown on the signature page of this

Agreement (or such other address as the Company shall designate in writing to

Indem­nitee).  Notice shall be deemed

received three business days after the date postmarked if sent by domestic

certified or registered mail, properly addressed, five business days if sent by

airmail to a country outside of North America; otherwise notice shall be deemed

received when such notice shall actually be received by the Company.  In addition, Indemnitee shall give the

Company such information and cooperation as it may reasonably require and as

shall be within Indemnitee’s power.

 

(c)   Procedure.  Any indemnification and advances pro­vided for in Section 1

and this Section 3 shall be made no later than thirty (30) days after

receipt of the written request of Indemnitee. 

If a claim under this Agreement, under any statute, or under any

provision of the Company’s Certificate of Incorporation or Bylaws providing for

indemnification, is not paid in full by the Company within thirty (30) days

after a written request for payment thereof has first been received by the

Company, Indemnitee may, but need not, at any time thereafter bring an action

against the Company to recover the unpaid amount of the claim and, subject to

Section 14 of this Agreement, Indemnitee shall also be entitled to be paid

for the expenses (including attorneys’ fees) of bringing such action.  It shall be a defense to any such action

(other than an action brought to enforce a claim for expenses incurred in

connection with any action, suit or proceeding in advance of its final

disposition) that Indemnitee has not met the standards of conduct which make it

permissible under applicable law for the Company to indemnify Indemnitee for

the amount claimed.  However, Indemnitee

shall be entitled to receive interim payments of expenses pursuant to

Subsection 3(a) unless and until such defense may be finally adjudicated

by court order or judgment from which no further right of appeal exists.  It is the parties’ intention that if the

Company contests Indemnitee’s right to indemnification, the question of

Indemnitee’s right to indemnification shall be for the court to decide, and

neither the failure of the Company (including its Board of Directors, any

committee or subgroup of the Board of Directors, independent legal counsel, or

its stockholders) to have made a determination that indemnification of

Indemnitee is proper in the circumstances because Indemnitee has met the

applicable standard of conduct required by applicable law, nor an actual

determination by the Company (including its Board of Directors, any committee

or subgroup of the Board of Directors, independent legal counsel, or its

stockholders) that Indemnitee has not met such applicable standard of conduct,

shall create a presumption that Indemnitee has or has not met the applicable

standard of conduct.

 

(d)   Notice to Insurers.  If, at the time of the receipt of a notice

of a claim pursuant to Section 3(b) hereof, the Company has director and

officer liability insurance in effect, the Company 

 

3

 

shall give prompt notice of the commencement of such

proceeding to the insurers in accordance with the procedures set forth in the

respective policies.  The Company shall

thereafter take all necessary or desirable action to cause such insurers to

pay, on behalf of the Indemnitee, all amounts payable as a result of such

proceeding in accordance with the terms of such policies.

 

(e)   Selection of Counsel.  In the event the Company shall be obligated

under Section 3(a) hereof to pay the expenses of any proceeding against

Indemnitee, the Company, if appropriate, shall be entitled to assume the

defense of such proceeding, with counsel approved by Indemnitee, upon the

delivery to Indemnitee of written notice of its election to do so.  After delivery of such notice, approval of

such counsel by Indemnitee and the retention of such counsel by the Company,

the Company will not be liable to Indem­nitee under this Agreement for any fees

of counsel subsequently incurred by Indemnitee with respect to the same

proceeding, provided that (i) Indemnitee shall have the right to employ

his counsel in any such proceeding at Indemnitee’s expense; and (ii) if

(A) the employment of counsel by Indemnitee has been previously authorized

by the Company, (B) Indemnitee shall have reasonably concluded that there

may be a conflict of interest between the Company and Indemnitee in the conduct

of any such defense, or (C) the Company shall not, in fact, have employed

counsel to assume the defense of such proceeding, then the fees and expenses of

Indemnitee’s counsel shall be at the expense of the Company.

 

4.     Additional Indemnification Rights;

Nonexclusivity.

 

(a)   Scope. 

Notwithstanding any other provision of this Agreement, the Company

hereby agrees to indemnify the Indemnitee to the fullest extent permitted by

law, notwithstanding that such indemnification is not specifically authorized

by the other provi­sions of this Agreement, the Company’s Certificate of

Incorpora­tion, the Company’s Bylaws or by statute.  In the event of any change, after the date of this Agreement, in

any applicable law, statute, or rule which expands the right of a Delaware

corporation to indemnify a member of its board of directors or an officer, such

changes shall be, ipso facto, within the purview of Indemnitee’s rights and

Company’s obligations, under this Agreement. 

In the event of any change in any applicable law, statute or rule which

narrows the right of a Delaware corporation to indemnify a member of its board

of directors or an officer, such changes, to the extent not otherwise required

by such law, statute or rule to be applied to this Agreement shall have no

effect on this Agreement or the parties’ rights and obligations hereunder.

 

(b)   Nonexclusivity.  The indemnification provided by this Agreement shall not be deemed

exclusive of any rights to which Indemnitee may be entitled under the Company’s

Certificate of Incorporation, its Bylaws, any agreement, any vote of

stockholders or disinterested Directors, the General Corporation Law of the

State of Delaware, or otherwise, both as to action in Indemnitee’s official

capacity and as to action in another capacity while holding such office.  The indemnification provided under this Agree­ment

shall continue as to Indemnitee for any action taken or not taken while serving

in an indemnified capacity even though he may have ceased to serve in such

capacity at the time of any action, suit or other covered proceeding.

 

5.     Partial Indemnification.  If Indemnitee is entitled under any

provision of this Agreement to indemnification by the Company for some or a

portion of the expenses, judgments, fines or penal­ties actually or reasonably

incurred by him in the investiga­tion, defense, appeal or settlement of any

 

4

 

civil or criminal action, suit or proceeding, but not, however, for the

total amount thereof, the Company shall nevertheless indemnify Indemnitee for

the portion of such expenses, judgments, fines or penalties to which Indemnitee

is entitled.

 

6.     Mutual Acknowledgement.  Both the Company and Indemnitee acknowledge

that in certain instances, Federal law or applicable public policy may prohibit

the Company from indemnifying its directors and officers under this Agreement

or otherwise.  Indem­nitee understands

and acknowledges that the Company has undertaken or may be required in the

future to undertake with the Securities and Exchange Commission to submit the

question of indemnification to a court in certain circumstances for a determination

of the Company’s right under public policy to indemnify Indemnitee.

 

7.     Officer and Director Liability

Insurance.  The Company

shall, from time to time, make the good faith determination whether or not it

is practicable for the Company to obtain and maintain a policy or policies of

insurance with reputable insurance companies providing the officers and

directors of the Company with coverage for losses from wrongful acts, or to

ensure the Company’s perfor­mance of its indemnification obligations under this

Agreement.  Among other considerations,

the Company will weigh the costs of obtaining such insurance coverage against

the protection afforded by such coverage. 

In all policies of director and officer liability insurance, Indemnitee

shall be named as an insured in such a manner as to provide Indemnitee the same

rights and benefits as are accorded to the most favorably insured of the

Company’s directors, if Indemnitee is a director; or of the Company’s officers,

if Indemnitee is not a director of the Company but is an officer.  Notwithstanding the foregoing, the Company

shall have no obligation to obtain or maintain such insurance if the Company

determines in good faith that such insurance is not reasonably available, if

the premium costs for such insurance are dispropor­tionate to the amount of

coverage provided, if the coverage pro­vided by such insurance is limited by

exclusions so as to provide an insufficient benefit, or if Indemnitee is

covered by similar insurance maintained by a subsidiary or parent of the

Company.

 

8.     Severability.  Nothing in this Agreement is intended to

require or shall be construed as requiring the Company to do or fail to do any

act in violation of applicable law.  The

Company’s inability, pursuant to court order, to perform its obligations under

this Agreement shall not constitute a breach of this Agree­ment. The provisions

of this Agreement shall be severable as provided in this Section 8.  If this Agreement or any portion hereof

shall be invalidated on any ground by any court of competent jurisdiction, then

the Company shall nevertheless indemnify Indem­nitee to the full extent

permitted by any applicable portion of this Agreement that shall not have been

invalidated, and the balance of this Agreement not so invalidated shall be

enforceable in accordance with its terms.

 

9.     Exceptions.  Any other provision herein to the contrary

notwithstanding, the Company shall not be obligated pursuant to the terms of

this Agreement:

 

(a)   Claims Initiated by Indemnitee.  To indemnify or advance expenses to

Indemnitee with respect to proceedings or claims initiated or brought

voluntarily by Indemnitee and not by way of defense, except with respect to

proceedings brought to establish or enforce a right to indemnification under

this Agree­ment or any other statute or law or otherwise as required under 

 

5

 

Section 145 of the Delaware General Corporation

Law, but such indemnification or advancement of expenses may be provided by the

Company in specific cases if the Board of Directors has approved the initiation

or bringing of such suit; or

 

(b)   Lack of Good Faith.  To indemnify Indemnitee for any expenses

incurred by the Indemnitee with respect to any proceeding instituted by

Indemnitee to enforce or interpret this Agreement, if a court of competent

jurisdiction determines that each of the material assertions made by the

Indemnitee in such proceeding was not made in good faith or was frivolous; or

 

(c)   Insured Claims.  To indemnify Indemnitee for expenses or liabilities of any type

whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes

or penalties, and amounts paid in settlement) which have been paid directly to

Indemnitee by an insurance carrier under a policy of officers’ and directors’

liability insurance maintained by the Company.

 

(d)   Claims Under Section 16(b).  To indemnify Indemnitee for expenses and the

payment of profits arising from the purchase and sale by Indemnitee of

securities in violation of Section 16(b) of the Securities Exchange Act of

1934, as amended, or any similar successor statute.

 

10.   Construction of Certain Phrases.

 

(a)   For purposes of this Agreement, references to

the “Company” shall include, in addition to the resulting corporation, any constituent

corporation (including any constituent of a constituent) absorbed in a

consolidation or merger which, if its separate existence had continued, would

have had power and author­ity to indemnify its directors, officers, and

employees or agents, so that if Indemnitee is or was a director, officer,

employee or agent of such constituent corporation, or is or was serving at the

request of such constituent corporation as a director, officer, employee or

agent of another corporation, partnership, joint venture, trust or other

enterprise, Indemnitee shall stand in the same position under the provisions of

this Agreement with respect to the resulting or surviving corporation as

Indemnitee would have with respect to such constituent corporation if its separate

existence had continued.

 

(b)   For purposes of this Agreement, references to

“other enterprises” shall include employee benefit plans; references to “fines”

shall include any excise taxes assessed on Indemnitee with respect to an

employee benefit plan; and references to “serving at the request of the

Company” shall include any service as a direc­tor, officer, employee or agent

of the Company which imposes duties on, or involves services by, such director,

officer, employee or agent with respect to an employee benefit plan, its

participants, or beneficiaries; and if Indemnitee acted in good faith and in a

manner Indemnitee reasonably believed to be in the interest of the participants

and beneficiaries of an employee benefit plan, Indem­nitee shall be deemed to

have acted in a manner “not opposed to the best interests of the Company” as

referred to in this Agreement.

 

11.   Counterparts.  This Agreement may be executed in one or

more counterparts, each of which shall constitute an original.

 

6

 

12.   Successors and Assigns.  This Agreement shall be binding upon the

Company and its successors and assigns, and shall inure to the benefit of

Indemnitee and Indemnitee’s estate, heirs, legal representatives and assigns.

 

13.   Attorneys’ Fees.  In the event that any action is insti­tuted

by Indemnitee under this Agreement to enforce or interpret any of the terms

hereof, Indemnitee shall be entitled to be paid all court costs and expenses,

including reasonable attorneys’ fees, incurred by Indemnitee with respect to

such action, unless as a part of such action, the court of competent

jurisdiction determines that each of the material assertions made by Indemnitee

as a basis for such action were not made in good faith or were frivolous.  In the event of an action instituted by or

in the name of the Company under this Agreement or to enforce or interpret any

of the terms of this Agreement, Indemnitee shall be entitled to be paid all

court costs and expenses, including attorneys’ fees, incurred by Indem­nitee in

defense of such action (including with respect to Indem­nitee’s counterclaims

and cross-claims made in such action), unless as a part of such action the

court determines that each of Indemnitee’s material defenses to such action

were made in bad faith or were frivolous.

 

14.   Notice.  All notices, requests, demands and other

communi­­cations under this Agreement shall be in writing and shall be deemed

duly given (i) if delivered by hand and receipted for by the party

addressee, on the date of such receipt, or (ii) if mailed by domestic

certified or registered mail with postage prepaid, on the third business day

after the date postmarked.  Addresses

for notice to either party are as shown on the signature page of this

Agreement, or as subsequently modified by written notice.

 

15.   Consent to Jurisdiction.  The Company and Indemnitee each hereby

irrevocably consent to the jurisdiction of the courts of the State of Delaware

for all purposes in connection with any action or proceeding which arises out

of or relates to this Agreement and agree that any action instituted under this

Agreement shall be brought only in the state courts of the State of Delaware.

 

16.   Choice of Law.  This Agreement shall be governed by and its

provisions construed in accordance with the laws of the State of Delaware, as

applied to contracts between Delaware residents entered into and to be

performed entirely within Delaware without regard to the conflict of law

principles thereof.

 

17.   Period of Limitations.  No legal action shall be brought and no

cause of action shall be asserted by or in the right of the Company against

Indemnitee, Indemnitee’s estate, spouse, heirs, executors or personal or legal

representatives after the expiration of two years from the date of accrual of

such cause of action, and any claim or cause of action of the Company shall be

extinguished and deemed released unless asserted by the timely filing of a

legal action within such two-year period; provided, however, that if any shorter

period of limitations is otherwise applicable to any such cause of action, such

shorter period shall govern.

 

18.   Subrogation.  In the event of payment under this Agree­ment,

the Company shall be subrogated to the extent of such payment to all of the

rights of recovery of Indemnitee, who shall execute all documents required and

shall do all acts that may be necessary to secure such rights and to enable the

Company effectively to bring suit to enforce such rights.

 

7

 

19.   Amendment and Termination.  No amendment, modification, termination or

cancellation of this Agreement shall be effective unless it is in writing

signed by both the parties hereto.  No

waiver of any of the provisions of this Agreement shall be deemed or shall

constitute a waiver of any other provisions hereof (whether or not similar) nor

shall such waiver constitute a continuing waiver.

 

20.   Integration and Entire Agreement.  This Agreement sets forth the entire

understanding between the parties hereto and supersedes and merges all previous

written and oral negotiations, commitments, understandings and agreements

relating to the subject matter hereof between the parties hereto

 

8

 

IN WITNESS WHEREOF, the parties hereto have executed

this Agreement as of the date first above written.

 

	

   

  	

  QUICKLOGIC

  CORPORATION

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Signature of Authorized Signatory

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Print Name and Title

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  Address:

  	

  1277 Orleans Drive

  
	

   

  	

   

  	

  Sunnyvale, CA 94089

  
	

   

  	

   

  	

   

  
				

 

	

  AGREED

  TO AND ACCEPTED:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  INDEMNITEE:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  Signature

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  Print

  Name and Title

  	

   

  
	

   

  	

   

  
	

  Address:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  

 

 

 

 

 

QuickLogic

Corporation

Indemnification

Agreement

9

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