Document:

Exhibit 10.3

 

LEASE GUARANTY

 

This LEASE GUARANTY
(this “Guaranty”) is made as of _______________, 2020, by EMCORE CORPORATION, a New Jersey corporation (“Guarantor”),
to and for the benefit of _____________ (“Landlord”).

 

RECITALS

 

A.            Systron
Donner Inertial, Inc., a Delaware corporation (“Tenant”), and Landlord are parties to that certain Single-Tenant
Triple Net Lease of even date herewith, with respect to certain premises located at 2700 Systron Drive, Concord, California, as
more particularly described in the Lease. Initially capitalized terms that are used but not otherwise defined herein shall have
the meanings given to them in the Lease.

 

B.            Tenant is a wholly-owned
subsidiary of Guarantor, and Guarantor shall derive financial benefits from the success of Tenant and the Lease.

 

C.            In order to induce
Landlord to enter into the Lease with Tenant, Guarantor has agreed to execute and deliver this Guaranty to Landlord.

 

NOW, THEREFORE,
in consideration of the foregoing recitals, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Guarantor hereby agrees as follows:

 

1.             Guaranty
of Obligations. Guarantor hereby guarantees the payment when due of Monthly Rent, and all other additional rent,
interest and charges to be paid by Tenant under the Lease, and the performance by Tenant of all of the material terms,
conditions, covenants and agreements of the Lease, including, without limitation, the environmental indemnification set forth
in Section 16.3 of the Lease. All payments required to be made by Guarantor hereunder shall be paid to Landlord in legal
United States currency or tender at Landlord’s address set forth below, or at such other address as Landlord may
specify from time to time. Notwithstanding any other provision in this guaranty, (a) Guarantor may assert as a defense to any
payment by the Guarantor hereunder, any defense that Tenant could assert against Landlord pursuant to the Lease (provided
that Guarantor may not assert the bankruptcy, insolvency, lack of authority or power, dissolution, liquidation or any other
similar debtor defense of Tenant or its successors or permitted assigns as such a defense); and (b) the obligations of
Guarantor hereunder shall not be greater than the obligations of Tenant under the Lease, plus any obligation of Guarantor to
pay the reasonable expenses incurred by Landlord in any successful enforcement of its rights under the Lease or this
Guaranty.

 

2.             No
Release or Discharge. This Guaranty is irrevocable, absolute, present, continuing and unconditional, and the obligations
of Guarantor shall not be released, impaired, modified, limited or affected in any way by (a) any extensions of time, indulgences
or modification which Landlord may extend to Tenant in the performance of its obligations under the Lease; (b) any failure of
Landlord to enforce any of the conditions of the Lease; (c) any assignment or other transfer of the Lease or this Guaranty by
Landlord; (d) any assignment or other transfer of the Lease by Tenant or the sublease of all or part of the Property by Tenant;
(e) any amendments to or modifications of the Lease; (f) the release or discharge of Tenant in bankruptcy or other creditors’
proceedings; or (g) any rejection or disclaimer of Tenant. In addition, the obligations hereunder of Guarantor shall extend and
apply with respect to the full and faithful performance and observance of all of the covenants, terms and conditions of Tenant
to be performed (i) if the Lease shall be renewed, or its term extended, for any period beyond the date specified in the Lease
for the expiration of said term, either pursuant to any option granted under the Lease or otherwise; and (ii) if Tenant holds
over beyond the term of the Lease.

 

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3.             Waiver.  Guarantor
waives (a) all presentments, demands for performance, notices of nonperformance, protests, notices of protest, notices of dishonor,
and notices of acceptance of this Guaranty; (b) notice of any extensions of time for performance which Landlord may grant to Tenant
and to any modifications or amendments to the Lease to which Landlord and Tenant, or their successors and assigns may agree; (c)
any right to require that any action be brought against Tenant; and (d) until this Guaranty is terminated pursuant to Section
5 below, any rights Guarantor may have against Tenant by reason of one or more payments or acts in compliance with Guarantor’s
obligations hereunder. Guarantor does not require any notice of Tenant’s non-payment, non-performance or nonobservance of
the covenants, terms, and conditions of the Lease, Guarantor hereby expressly waiving the right to receive such notice.

 

4.             Primary
Obligation. This Guaranty is a primary obligation of Guarantor. Provided that all applicable notice, cure and grace
periods have expired under the Lease with respect to any Tenant default, Landlord may proceed against Guarantor hereunder without
first proceeding against or exhausting its rights and remedies against Tenant or any other guarantor.

 

5.             Termination.  This
Guaranty shall terminate and be of no further force or effect at such time as (i) Tenant has satisfied all of Tenant’s obligations
under the Lease; or (ii) Landlord has released Tenant from Tenant’s obligations under the Lease.

 

6.             Intentionally
Omitted.

 

7.             Notices.  Any
notice, demand or other communication which either party may desire or may be required to give to the other party shall be in
writing, and shall be deemed given if delivered via hand delivery or by nationally recognized overnight courier (in either case
with evidence of receipt of refusal thereof) addressed to the intended recipient at its address set forth below, or to such other
address as such intended recipient may have designated by notice furnished in accordance herewith:

 

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	If to Landlord:	 
	 	 
	If to Guarantor:	EMCORE Corporation
	 	Attn: General Counsel
	 	2015 Chestnut St.
	 	Alhambra, CA 91803

 

Except as otherwise specifically required
herein, notice of the exercise of any right, option or power granted to Landlord by this Guaranty is not required to be given.

 

8.            Governing
Law. For any matter relating to procedural or substantive law, this Guaranty shall be construed and enforced according
to the internal laws of the State of California without reference to conflict of laws.

 

9.            Interpretation.  If any provision of this Guaranty, or any paragraph, sentence, clause, phase, or word, or the application thereof,
is held invalid in any circumstance, the validity of the remainder of this Guaranty shall be construed as if such invalid part
were never included herein. The headings of sections and paragraphs in this Guaranty are for convenience only and shall not be
construed in any way to limit or define the content, scope, or intent of the provisions hereof. As used in this Guaranty, the
singular includes the plural, and masculine, feminine and neuter pronouns are fully interchangeable, where the context so requires.

 

10.          Successors
and Assigns. This Guaranty shall be binding upon, and the term “Guarantor” shall include, the successors,
assigns, legal representatives and other transferees of Guarantor. This Guaranty shall also inure to the benefit of Landlord’s
successors, assigns, and legal representatives.

 

11.          Due Authorization. Guarantor represents and warrants that this Guaranty has been duly authorized by all necessary
corporate action on Guarantor’s part, has been duly executed and delivered by a duly authorized officer, and constitutes
Guarantor’s valid and legally binding agreement in accordance with its terms.

 

12.          Complete Agreement. This Guaranty represents the entire understanding of the parties with respect to the subject
matter hereof. This Guaranty shall not be modified except by a written agreement signed by the parties hereto.

 

[Signature pages to follow.]

 

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IN WITNESS WHEREOF, Guarantor executes
this Guaranty as in instrument under seal as of the day and year first written above.

 

	 	EMCORE
    CORPORATION,
	 	a New Jersey
    corporation
	 	 
	 	 
	 	By:	                              
	 	Name:	 
	 	Title:	 

 

    4Exhibit 10.1

  

   

  

  
    

    

    SETTLEMENT AND RELEASE AGREEMENT

    

    

    THIS SETTLEMENT AND RELEASE AGREEMENT (the “Settlement Agreement”) is made
        and entered into this 30th day of December, 2019 by, among, and between:

    
      	
              1.

            	
              GSE Performance Solutions, Inc., its parent company, GSE Systems, Inc. and their subsidiaries and
                  affiliates, including, but not limited, DP Engineering Ltd. Co. (collectively, “GSE”);

            

    

    
      	
              2.

            	
                 Christopher A. Davenport, individually (“Davenport”), and

            

    

    
      	
              3.

            	
              Steven L. Pellerin, individually and in his capacity as Seller Representative under the Membership
                  Purchase Agreement (“Pellerin”).

            

    

    

    

    The parties to this Settlement Agreement are hereinafter referred to individually as a “Party” or collectively as
        the “Parties.”

    

    

    WITNESSETH

    WHEREAS, the Parties to this Settlement Agreement are the Buyer and Seller
        Parties under (and as defined in) that certain Membership Interest Purchase Agreement dated as of February 15, 2019 (the “MIPA”), pursuant to which Seller Parties sold to Buyer their respective Interests in DP Engineering Ltd. Co.;

    WHEREAS, following the execution of the MIPA, as set forth in greater detail in
        the August 27, 2019 Demand for Indemnification under Membership Interest Purchase Agreement, GSE alleged that Davenport and Pellerin breached the MIPA and made demand for indemnification under MIPA Section 3.07(a), 3.08(b), 3.13(b), 3.15(a) and
        3.26 for Losses incurred in the amount of $29,000,000.00 (the “Indemnity Claim”);

    WHEREAS, Davenport and Pellerin rejected the Indemnity Claim and fully denied
        that either breached any provision of the MIPA;

    WHEREAS, the Parties have reached an agreement to resolve the Indemnity Claim
        and any and all other claims which any Party may have, now or in the future, known or unknown, in any way connected to or arising from the MIPA as well as additional claims as further defined herein excepting only those expressly reserved herein,
        and

    WHEREAS, the Parties desire to document the terms and conditions of such settlement;

    NOW, THEREFORE, for and in consideration of the mutual promises of the
        Parties to the other, the mutual releases and agreements contained herein, the promises of payment herein provided, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, the Parties
        hereto have agreed, and do hereby agree, to the following:

    

    

    
      	
              1.

            	
              Upon full execution of this Settlement Agreement, the Parties, collectively, agree to instruct the Escrow Agent (as defined in the MIPA) to
                  release the Escrow Funds in the amount of One Million Seven Hundred Eight Thousand Seven Hundred Thirty and 68/100 Dollars ($1,708,730.68) to GSE Performance Solutions, Inc.;

            

    

    
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              2.

            	
              In addition to the foregoing, Davenport and Pellerin, collectively, agree to pay to GSE, or its designee, the total amount of
                  Three Hundred Sixteen Thousand Two Hundred Sixty-Nine and 32/100 Dollars ($316,269.32), on or before 11:59p.m. Central Standard Time on December 31, 2019, provided that GSE provides Davenport and Pellerin with a signed Settlement
                  Agreement and a W-9 no later than 10:00.a.m. Central Standard Time on December 31, 2019 (the “Settlement Execution Deadline”). Payment shall be via wire transfer pursuant to instructions delivered by GSE to counsel for Davenport and
                  Pellerin on or before the Settlement Execution Deadline.

            

    

    

    

    
      	
              3.

            	
              As a material inducement to enter into this Settlement Agreement, GSE acknowledges and agrees that Davenport and Pellerin, on behalf of DP
                  Engineering Ltd. Co., have previously filed a state tax return with the State of Mississippi for the tax period ending December 31, 2018 pursuant to which a refund in the amount of Twenty-One Thousand One Hundred Thirty-Five and No/100
                  Dollars ($21,135.00) is claimed to be due and owing (the “Tax Refund”). GSE has represented to Davenport and Pellerin that GSE has not yet received the Tax Refund. However, GSE acknowledges and agrees that the Tax Refund is due and
                  payable to Davenport and Pellerin, and accordingly, GSE agrees that within seven (7) business days of receipt of the Tax Refund (or any portion of the Tax Refund), that it shall pay to Davenport and Pellerin, any and all amounts received
                  related in any way to the Tax Refund. Such payment shall be made to Davenport and Pellerin c/o its counsel, M. Brandon Waddell, Vincent Serafino Geary Waddell Jenevein, P.C., 1601 Elm Street, Suite 4100, Dallas, TX 75201. GSE further
                  agrees, upon written request, to provide Davenport and Pellerin with an accounting of the Tax Refund and to make its financial records available for inspection and copying at a mutually convenient time and location to the extent such
                  financial records relate, in any way, to the Tax Refund or the receipt of any portion of the Tax Refund.

            

    

    

    

    
      	
              4.

            	
              With the exception of the reserved rights and obligations set forth in the immediately following Section (the “Reserved Rights”), all Parties
                  fully, finally, and mutually release, acquit, and forever discharge each other and each other’s respective agents, employees, officers, partners, members, shareholders, parents, affiliates, subsidiaries, principals, trustees, owners,
                  directors, sureties, successors, attorneys and all other persons and entities in privity with any of them (collectively, the “Releasees”), of and from the Indemnity Claim, and any and all claims, demands, damages, defects, and
                  deficiencies, or any of them, including, but not limited to those related to, arising out of, or in connection with the MIPA or the operations or professional services provided by DP Engineering Co. Ltd. prior to February 15, 2019; claims
                  for fraud, non-disclosure or misrepresentation; claims of subrogation or indemnity; claims for additional insured status; claims for property damage; claims for loss of use, diminution in value, stigma, delay damages, liquidated damages,
                  consequential damages, or attorneys’ fees; claims for contractual indemnity; claims for breach of express or implied warranties; and all causes of action of any kind whatsoever, whether known or unknown, whether heretofore or hereafter
                  accruing or arising, whether held by assignment or otherwise, whether sounding in tort, intentional tort, contract, or trespass, or arising by operation of law, code, regulation or statute, that any Party has, had, or may ever have in the
                  future (whether in its own name or as assignee or successor for another) against any other Party or Releasee, in any way related to, arising out
                  of, or in connection with the MIPA or the operations or professional services provided by DP Engineering Co. Ltd. prior to February 15, 2019.

            

    

     

      

    
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              5.

            	
              The following Reserved Rights are not
                  released hereby and shall survive the execution of this Settlement Agreement:

            

    

    

    

    
      	
              a.

            	
              the obligations specifically undertaken by any Party in this Settlement Agreement;

            

    

    

    

    
      	
              b.

            	
              the obligations of GSE undertaken pursuant to Section 3 of this Settlement Agreement to pay the Tax Refund to Davenport and Pellerin and to
                  provide an accounting and inspection of financial records as more particularly described in Section 3;

            

    

    

    

    
      	
              c.

            	
              the reservation by any Party entitled to receive funds hereunder, of claims against any Party failing to make payment as provided herein; and

            

    

    

    

    
      	
              d.

            	
              The indemnity obligations of Buyer to Seller Indemnitees under Section 10.03(c) of the MIPA.

            

    

    

    

    
      	
              6.

            	
              Each Party shall bear its own costs, attorneys’ fees, and experts’ fees which have been or may be incurred in the future arising out of or in
                  any way related to Indemnity Claim.

            

    

    

    

    
      	
              7.

            	
              Non-Disparagement. As a material
                  inducement to enter into this Settlement Agreement, the Parties collectively agree, following the effective date of this Settlement Agreement, not to directly or indirectly, either orally or in writing, participate in any action or
                  attempted action that which could reasonably be expected to disparage, negatively comment on, criticize, denigrate, or adversely affect the reputation of another Party, its services, clients, business operations, policies, or practices.

            

    

    

    

    
      	
              8.

            	
              This Settlement Agreement is a compromise and settlement of disputed claims and is being entered into solely to avoid the time, expense,
                  uncertainty, and inconvenience of continued dispute, discussion, litigation and arbitration. Neither the execution of this Settlement Agreement nor anything stated herein, nor any amount paid hereunder, is to be construed or deemed as an
                  admission of liability, culpability, or wrongdoing on the part of any Party to this Settlement Agreement.

            

    

    

    

    
      	
              9.

            	
              All Parties agree to execute such other and further documents and releases, consistent with the terms of this Settlement Agreement, as may be
                  reasonably required by any Party or its insurance carriers, to evidence and effectuate the agreements reached herein.

            

    

    

    

    
      	
              10.

            	
              Each of the Parties represents and warrants to the other Parties that it owns the claims it releases herein and has not
                  assigned or otherwise transferred any claim or cause of action that it may have possessed against another Party to any person or entity not a Party to this Settlement Agreement. Each Party expressly warrants and represents that they have
                  no knowledge or notice, actual or constructive, of anyone asserting claims, by, through or under

            

    

    
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    that Party. The signatories hereto warrant and represent that they have the full power and
        authority to bind the Party entity for which they have signed.

    

    

    
      	
              11.

            	
              This Settlement Agreement constitutes a single, integrated, written contract expressing the entire understanding and
                  agreement between  the Parties. The terms of the Settlement Agreement are contractual and not merely recitals. There is no other agreement, written or oral, expressed or implied, between the Parties with respect to the subject matter of
                  this Settlement Agreement. The Parties declare and represent that no promise, inducement or other agreement not expressly contained in this Settlement Agreement has been made by any other Party or counsel for any other Party.

            

    

    

    

    
      	
              12.

            	
              Each Party adopts this Settlement Agreement as the product of a group drafting effort by counsel for all Parties, not to be
                  construed more favorably for or against any Party to this Settlement Agreement. Each Party has been represented by independent counsel.

            

    

    

    

    
      	
              13.

            	
              Should any provision of this Settlement Agreement be held unenforceable for any reason it will be deemed severed from the
                  Settlement Agreement, the remainder of which will continue to be in force in its entirety.

            

    

    

    

    
      	
              14.

            	
              This Settlement Agreement shall be binding upon and inure to the benefit of the Parties, and shall be binding on their
                  respective affiliates, executors, administrators, personal representatives, heirs, successors, and assigns of each. Neither this Settlement Agreement, nor any of its recitals, terms or provisions, nor any of the negotiations or
                  proceedings connected with it, nor any other action taken to carry out this Settlement Agreement, shall be offered as evidence in any pending or future claim or pending or future civil, criminal, or administrative action or proceeding,
                  except in a proceeding to enforce this Settlement Agreement, or to defend against the assertion of the released claims, or as otherwise required by law. This Settlement Agreement has been entered into in reliance upon federal and state
                  law provisions which provide for the inadmissibility of evidence regarding settlement and mediation negotiations or agreements.

            

    

    

    

    
      	
              15.

            	
              Maryland law, without regard to any law that would apply the law of any other state, shall govern the interpretation of
                  this Settlement Agreement. Any disputes arising under this Settlement Agreement shall be heard in the federal or state courts of Maryland.

            

    

    

    

    
      	
              16.

            	
              This Settlement Agreement may be executed in multiple facsimile or electronic counterparts, and with facsimile signatures,
                  and all such counterparts shall together be deemed to constitute one final agreement, as if each Party had signed one document. Each such counterpart or a facsimile copy thereof shall be deemed to be an original, binding the Parties
                  subscribed thereto.

            

    

    

    

    
      	
              17.

            	
              The Parties agree that they shall keep all terms of this Settlement Agreement confidential. If inquiry is made, they agree
                  they shall report only that the case was settled and the terms of the settlement are confidential and offer no further comment. However, if required by law, including without limitation applicable SEC regulations, the Internal Revenue
                  Service or a court order, they shall reveal only what terms of the settlement are necessary to fulfill their

            

    

    
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    legal obligations. Additionally, if necessary, the Parties may use the information in the
        Settlement Agreement for use in applications for insurance and for seeking court approval of the settlement, if necessary or applicable. The terms of this Settlement Agreement may be disclosed in connection with legal proceedings seeking to enforce
        the terms of this Settlement Agreement, and/or to the Parties’ tax, accounting, financial, and legal professionals, provided that such professionals agree to abide by the confidentiality provisions of this Agreement.

    

    

    IN WITNESS WHEREOF, this Settlement Agreement has been executed by the Parties.

    

    

    *** SIGNATURES ON NEXT PAGES ***

    
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      GSE PERFORMANCE SOLUTIONS, INC.

      

      

      By:  /s/ Emmett Pepe

      

      

      Printed Name:  Emmett Pepe

      

      

      Its:  Treasurer

      

      

      Approved as to form:

      /s/ George F. Ritchie

      Counsel for GSE

      

      

      /s/ Christopher A. Davenport

      CHRISTOPHER A. DAVENPORT, INDIVIDUALLY

      

      

      /s/ Steven L. Pellerin

      STEVEN L. PELLERIN, INDIVIDUALLY AND

      IN HIS CAPACITY AS SELLER REPRESENTATIVE

      

      

      Approved as to form:

      /s/ M. Brandon Waddell

      Counsel for Davenport and Pellerin

    

  

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