Document:

Exhibit
4.3

 

STOCK OPTION AGREEMENT

(Employment Inducement Grant)

 

This
NON-STATUTORY STOCK OPTION AGREEMENT, dated as of March 1, 2010 (this “Agreement”),
is between NETLIST, INC., a Delaware corporation (the “Company”), and
Ron Nikel (the “Optionee”).

 

R E C I T A L S

 

A.            Optionee has not previously been an
officer, director or employee of the Company, and this Option (as defined
below) is granted to Optionee to attract and retain Optionee to serve the
Company in the capacity of Vice President of Research and Development.

 

B.            This Agreement, and the grant of an
Option to the Optionee pursuant to the terms and conditions hereof, have been
approved by the Board of Directors of the Company (the “Board”).

 

C.            This Option is designated as a
non-qualified stock option, and does not
qualify as an incentive stock option within the meaning of Section 422 of
the Internal Revenue Code of 1986, as amended (the “Code”).

 

A G R E E M E N T

 

In
consideration of the foregoing recitals and of the mutual covenants contained herein,
the parties, intending to be legally bound, agree as follows:

 

1.             Grant  of  Option.  The Company hereby grants to the Optionee, as
an inducement to accept employment with the Company, an option (the “Option”)
to purchase from the Company all or any number of an aggregate of 100,000
shares (the “Option  Shares”), of the Company’s common stock,
$.001 par value per share, at a price of $ 3.82 per share, on the terms and
subject to the conditions of this Agreement. 
This grant is not
made pursuant to the Company’s 2006 Equity Incentive Plan (the “Plan”),
attached as Exhibit A. 
However, except as otherwise expressly provided herein, this grant is
subject to the rules, terms and conditions of the Plan as if it were a grant
made pursuant to and under the Plan, and all such rules, terms and conditions
are hereby incorporated herein by reference as if set forth herein in their
entirety.  Capitalized terms used but not
defined in this Agreement shall have the meanings given to them in the
Plan.  The Option is granted as of March 1,
2010 (the “Grant  Date”).

 

2.             Character  of  Option.  The Option is not intended to be treated as an “incentive stock option”
within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”).

 

3.             Duration  of  Option.  Unless subject to earlier expiration or
termination pursuant to the terms of the Plan, the Option shall expire on the
ten year anniversary of the Grant Date.

 

4.             Exercisability  of  Option.  The Option may be exercised, at any time and
from time to time until its expiration or termination, for any or all of those
Option Shares in respect of which the Option shall have become exercisable, in
accordance with the provisions set forth below in this Section 4, on or at
any time prior to the date of any such exercise.  Subject to the provisions of the Plan
(including, without limitation, the 

 

 

provisions
of Section 7.1(e) of the Plan), the Option shall become
exercisable  (i) in the amount of
25,000 shares of Common Stock on the first anniversary of the Date of Grant,
and (ii) in twelve (12) equal quarterly installments of 6,250 shares
thereafter until vested in full (or otherwise terminated), such that, on March 1,
2014, the Option shall be vested as to all of the Shares and fully
exercisable.  These installments shall be
cumulative, such that Optionee may exercise the Option as to any or all of the
Shares covered by any installment at any time or times after such installment
vests and prior to termination of the Option. 
The foregoing notwithstanding, the Option shall cease vesting upon the
termination of Optionee’s status as an employee of the Company for any
reason.  Notwithstanding anything
expressed or implied to the contrary in the foregoing provisions of this Section 4,
the exercisability of the Option may, as provided in Section 7.1(d) of
the Plan, at any time be Accelerated in the discretion of the Committee.

 

5.             Transfer  of  Option.  Other than as expressly permitted by the
provisions of Section 6.4 of the Plan, the Option may not be transferred except
by will or the laws of descent and distribution and, during the lifetime of the
Optionee, may be exercised only by the Optionee.

 

6.             Incorporation  of  Plan
Terms.  The Option is granted
subject to all of the applicable terms and provisions of the Plan, which terms
and provisions are incorporated herein by reference pursuant to Section 1
of this Agreement, including, but not limited to, the limitations on the
Company’s obligation to deliver Option Shares upon exercise set forth in Section 9.2
(Violation of Law), Section 9.3 (Corporate Restrictions on Rights in
Stock), Section 9.4 (Investment Representations) and Section 9.7 (Tax
Withholding).

 

7.             Miscellaneous.  This Agreement shall be construed and
enforced in accordance with the internal, substantive laws of the State of
Delaware and shall be binding upon and inure to the benefit of any successor or
assign of the Company and any executor, administrator, trustee, guardian, or
other legal representative of the Optionee.

 

IN
WITNESS WHEREOF, the parties have executed this Stock Option Agreement as a
sealed instrument as of the date first above written.

 

	
  NETLIST, INC.

  	
   

  	
  OPTIONEE

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Michael
  S. Oswald

  	
   

  	
  Ron
  Nikel

  
	
   

  	
  Assistant
  Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Optionee’s
  Address:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

Exhibit A

 

Netlist, Inc.

2006 Equity Incentive PlanExhibit 10.1

 

FIFTH
AMENDMENT TO LEASE

 

Reference is made to a certain Lease dated January 7, 2000, by
and between John H. Spurr, Jr. and William G. Constable, Trustees (Successor
to Thomas J. Teuten) of 1050 Hingham Street Realty Trust,  (“Landlord”) and BioSphere Medical, Inc.  (“Tenant”), and as amended, for Leased
Premises located at 1050 Hingham Street, Rockland, Massachusetts (the “Lease”).

 

Now therefore, in
consideration of these presents and other good and valuable consideration,
Landlord and Tenant agree that the Lease is hereby amended as follows:

 

1.                                       Effective on the Fifth Amendment
Commencement Date, the Lease Term set forth in the Reference Data Section is
extended for a period of one (1) year through February 28, 2011.

 

2.                                       The Base Rent set forth in the Reference
Data Section is revised to include the following schedule effective on March 1,
2010

 

	
   

  	
   

  	
  Annual

  	
   

  	
  Monthly

  	
   

  
	
  Period

  	
   

  	
  Rent

  	
   

  	
  Rent

  	
   

  
	
  March 1, 2010 –
  February 28, 2011

  	
   

  	
  $

  	
  256,651.25

  	
   

  	
  $

  	
  21,387.60

  	
   

  
								

 

3.                                       The Tenant
shall be responsible for the cost of electricity consumed through lights and
outlets, which shall be sub-metered and billed to Tenant as per current
practice.

 

4.                                       After the Fifth Amendment Commencement
Date, Base Taxes shall be Taxes for the fiscal year ended June 30, 2011 and
Base Operating Costs shall be Operating Costs for the calendar year 2010.

 

5.                                       After the Fifth Amendment Commencement
Date, Tenant’s Proportionate Share shall remain the same as previously set for
the in the Amended Reference Data Section.

 

6.                                       Landlord and Tenant agree
that the Leased Premises shall be delivered in “as is” condition.

 

7.                                       Holdover Rent: 
After the Fifth Amendment Commencement Date, Section 26 of the Lease
shall be amended to reflect a daily rate in an amount equal to one hundred
seventy five (175%) percent of the daily rate of the Rent and other sums
payable under this Lease as of the last day of the Lease Term.

 

8.                                       Lease Security: 
Tenant shall extend the Letter of Credit in the amount of $58,000 in
favor of Landlord through the end of the Lease Term as extended herein.

 

9.                                       Broker:  Landlord and Tenant warrant that no real
estate brokers other than FHO Partners are involved in this Lease Extension and
Tenant hereby indemnifies Landlord for any claims for commissions other than to
the broker named above.

 

 

10.                                 The capitalized terms contained herein
shall have the same meaning as those terms contained in the Lease, First
Amendment to Lease, Second Amendment to Lease, Third Amendment to Lease and
Fourth Amendment to Lease.

 

11.                                 Except as herein expressly set forth, the
Lease shall remain unchanged and is hereby ratified and remains in full force
and effect.

 

Executed under seal this
9th day of March, 2010.

 

	
   

  	
  LANDLORD:

  
	
   

  	
  1050 Hingham Street Realty Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John H. Spurr, Jr.

  
	
   

  	
   

  	
  Trustee and not
  individually

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
  BioSphere Medical, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Martin J. Joyce

  
	
   

  	
   

  	
  duly authorized

  

 

 

AMENDED
REFERENCE DATA

REFLECTING FIFTH
AMENDMENT

 

As used in this Lease,
the following terms shall have the respective meanings set forth below except
when and to the extent reference is made to particular Sections of the Lease:

 

	
  Date of Lease:

  	
   

  	
  January 7, 2000

  
	
   

  	
   

  	
   

  
	
  Date of Amendments:

  	
   

  	
  First Amendment

  	
  June 27, 2000

  
	
   

  	
   

  	
  Second Amendment

  	
  January 21, 2005

  
	
   

  	
   

  	
  Third Amendment

  	
  February 24, 2006

  
	
   

  	
   

  	
  Fourth Amendment

  	
  January 5, 2009

  
	
   

  	
   

  	
  Fifth Amendment

  	
  March 9, 2010

  
	
   

  	
   

  	
   

  
	
  Landlord:

  	
   

  	
  John H. Spurr, Jr. and William G. Constable,
  Trustees of 1050 Hingham Street Realty Trust.

  
	
   

  	
   

  	
   

  
	
  Landlord’s Address:

  	
   

  	
  20 Winthrop Square, Boston, Massachusetts
  02110-1229.

  
	
   

  	
   

  	
   

  
	
  Tenant:

  	
   

  	
  BioSphere Medical, Inc., a Delaware Corporation.

  
	
   

  	
   

  	
   

  
	
  Tenant’s Address:

  	
   

  	
  1050 Hingham Street

  
	
   

  	
   

  	
  Rockland, Massachusetts 02370

  
	
   

  	
   

  	
   

  
	
  Property:

  	
   

  	
  Landlord’s land and improvements thereon known as
  1050 Hingham Street, Rockland, Massachusetts 02370.

  
	
   

  	
   

  	
   

  
	
  Building:

  	
   

  	
  The three-story building located on the Property.

  
	
   

  	
   

  	
   

  
	
  Leased Premises:

  	
   

  	
  The entire first floor (excluding the common
  entrance lobby) of the Building as shown on Exhibit A-1.

  
	
   

  	
   

  	
   

  
	
  Rentable Square Footage of the Leased Premises:

  	
   

  	
  Prior to First Amendment 7,797 square feet.

  
	
   

  	
   

  	
  Prior to Second Amendment 12,995 square feet

  
	
   

  	
   

  	
  Prior to Third Amendment 7,797 square feet

  
	
   

  	
   

  	
  Prior to the Fourth Amendment 12,995 square feet

  
	
   

  	
   

  	
  Prior to the Fifth Amendment 12,995 square feet

  
	
   

  	
   

  	
  After Fifth Amendment 12,995 square feet

  
	
   

  	
   

  	
   

  
	
  Total Rentable Square Footage of the Building:

  	
   

  	
  39,771 square feet.

  

 

 

	
  Use of Leased Premises:

  	
   

  	
  Administrative offices for a medical device company
  and ancillary uses related thereto including research and development and
  light manufacturing to the extent described in Exhibit D attached hereto and
  incorporated herein, provided that such research and development involve no
  hazardous materials, solid waste, noise or fumes beyond the Leased Premises
  or any impact on the Building, its operations or the operations of other
  tenants in the Building.

  
	
   

  	
   

  	
   

  
	
  Lease Term:

  	
   

  	
  Ten (10) years, eleven (11) months
  (original term – five (5) years, extension per Second Amendment – two (2)
  years of which only eleven months were completed prior to the Third Amendment,
  extension per Third Amendment – three (3) years ending February 28, 2009 -
  extension per Fourth Amendment – one (1) year ending February 28, 2010 –
  extension per Fifth Amendment – one (1) year ending February 28, 2011.)

  
	
   

  	
   

  	
   

  
	
  Specified Commencement Date:

  	
   

  	
  March 15, 2000

  
	
   

  	
   

  	
   

  
	
  Commencement Date:

  	
   

  	
  The Specified Commencement Date or such other date
  as is determined in accordance with the terms of Section 3.

  
	
   

  	
   

  	
   

  
	
  Second Amendment Commencement Date:

  	
   

  	
  April 1, 2005

  
	
   

  	
   

  	
   

  
	
  Third Amendment Commencement Date:

  	
   

  	
  March 1, 2006

  
	
   

  	
   

  	
   

  
	
  Fourth Amendment Commencement Date:

  	
   

  	
  March 1, 2009

  
	
   

  	
   

  	
   

  
	
  Fifth Amendment Commencement Date:

  	
   

  	
  March 1, 2010

  
	
   

  	
   

  	
   

  
	
  Base Rent:

  	
   

  	
   

  

 

	
   

  	
   

  	
  Annual

  	
   

  	
  Monthly

  	
   

  
	
  Periods

  	
   

  	
  Base Rent

  	
   

  	
  Installment

  	
   

  
	
  March 15, 2000
  to July 14, 2000

  	
   

  	
  $

  	
  155,940.00

  	
   

  	
  $

  	
  12,995.00

  	
   

  
	
  July 15, 2000 to
  March 14, 2003

  	
   

  	
  $

  	
  270,296.00

  	
   

  	
  $

  	
  22,524.67

  	
   

  
	
  March 15, 2003
  to March 31, 2005

  	
   

  	
  $

  	
  276,143.75

  	
   

  	
  $

  	
  23,011.98

  	
   

  
	
  April 1, 2005 to
  February 28, 2006

  	
   

  	
  $

  	
  155,940.00

  	
   

  	
  $

  	
  12,995.00

  	
   

  
	
  March 1, 2006 to
  February 28, 2010

  	
   

  	
  $

  	
  233,910.00

  	
   

  	
  $

  	
  19,492.50

  	
   

  
	
  March 1, 2010 to
  February 28, 2011

  	
   

  	
  $

  	
  256,651.25

  	
   

  	
  $

  	
  21,387.60

  	
   

  

 

 

	
  Lease Security:

  	
   

  	
  An irrevocable letter of credit (the “Letter of
  Credit”) or cash Security Deposit of $140,000 at the Commencement Date and
  $234,000 after the execution of the First Amendment, to be reduced as
  scheduled below, subject to Section 4.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Period

  	
   

  	
  Amount

  	
   

  	
   

  
	
   

  	
   

  	
  3/15/00 – First
  Amendment Execution

  	
   

  	
  $

  	
  140,000

  	
   

  	
   

  
	
   

  	
   

  	
  First Amendment
  Execution – 3/14/01

  	
   

  	
  $

  	
  234,000

  	
   

  	
   

  
	
   

  	
   

  	
  3/15/01 –
  3/14/02

  	
   

  	
  $

  	
  198,000

  	
   

  	
   

  
	
   

  	
   

  	
  3/15/02 –
  3/14/03

  	
   

  	
  $

  	
  157,800

  	
   

  	
   

  
	
   

  	
   

  	
  3/15/03 –
  3/14/04

  	
   

  	
  $

  	
  110,500

  	
   

  	
   

  
	
   

  	
   

  	
  3/15/04 –
  2/28/10

  	
   

  	
  $

  	
  58,000

  	
   

  	
   

  
	
   

  	
   

  	
  3/15/10 –
  2/28/11

  	
   

  	
  $

  	
  58,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base Operating Costs:

  	
   

  	
  Prior to Second Amendment: Operating Costs for the
  calendar year 2000, grossed up to reflect 100% occupancy for a full calendar
  year.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Prior to Third Amendment: Operating Costs for the
  calendar year 2004, grossed up to reflect 100% occupancy for a full calendar
  year.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Prior to Fourth Amendment: Operating Costs for the
  calendar year 2004, grossed up to reflect 100% occupancy for a full calendar
  year ($324,954.44). This base year amount is net of the annual amount paid
  towards such costs by the basement tenant and Operating Costs for all
  subsequent years shall be adjusted to reflect the amount borne by the basement
  tenant in those years.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Prior to Fifth Amendment: Operating Costs for the
  calendar year 2004, grossed up to reflect 100% occupancy for a full calendar
  year ($324,954.44). This base year amount is net of the annual amount paid
  towards such costs by the basement tenant and Operating Costs for all
  subsequent years shall be adjusted to reflect the amount borne by the
  basement tenant in those years.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  After Fifth Amendment: Operating Costs for the
  calendar year 2010, grossed up to reflect 100% occupancy for a full calendar
  year. This base year amount is net of the annual amount paid towards such
  costs by the basement tenant and Operating Costs for all subsequent years
  shall be adjusted to reflect the amount borne by the basement tenant in those
  years.

  

 

 

	
  Base Taxes:

  	
   

  	
  Prior to Second Amendment: Taxes for the fiscal year
  ended June 30, 1999.

  
	
   

  	
   

  	
  Prior to Third Amendment: Taxes for the fiscal year
  ended June 30, 2005.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Prior to Fourth Amendment: Taxes for the fiscal year
  ended June 30, 2005 ($47,493.11). This base year amount is net of the annual
  amount paid toward such costs by the basement tenant and Taxes for all
  subsequent years shall be adjusted to reflect the amount borne by the
  basement tenant in those years.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Prior to Fifth Amendment: Taxes for the fiscal year
  ended June 30, 2005 ($47,493.11). This base year amount is net of the annual
  amount paid toward such costs by the basement tenant and Taxes for all
  subsequent years shall be adjusted to reflect the amount borne by the
  basement tenant in those years.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  After Fifth Amendment: Taxes for the fiscal year
  ended June 30, 2011. This base year amount is net of the annual amount paid
  toward such costs by the basement tenant and Taxes for all subsequent years
  shall be adjusted to reflect the amount borne by the basement tenant in those
  years.

  
	
   

  	
   

  	
   

  
	
  Electricity:

  	
   

  	
  Prior to First Amendment $6,627.45 per year or
  $552.29 per month. After First Amendment $11, 825.00 per year or $985.42 per
  month.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  After Second, Third, Fourth and Fifth Amendments, Tenant shall
  be responsible for the cost of electricity consumed through lights and
  outlets, which shall be sub-metered and billed to Tenant as per current
  practice.

  
	
   

  	
   

  	
   

  
	
  Tenant’s Proportionate Share:

  	
   

  	
  Prior to First Amendment 19.605%.

  
	
   

  	
   

  	
  Prior to Second Amendment 32.675%.

  
	
   

  	
   

  	
  Prior to Third Amendment 19.605%

  
	
   

  	
   

  	
  Prior to Fourth Amendment 32.675%

  
	
   

  	
   

  	
  Prior to Fifth Amendment 32.675%

  
	
   

  	
   

  	
  After Fifth Amendment Commencement Date 32.675%

  
	
   

  	
   

  	
   

  
	
  Insurance:

  	
   

  	
  $1,000,000/$3,000,000 per occurrence public liability;

  
	
   

  	
   

  	
  $1,000,000 per occurrence property damage.

  

 

 

	
   

  	
   

  	
  Personal Property insurance for all risks to full
  insurable value of personalty in the Leased Premises.

  
	
   

  	
   

  	
   

  
	
  Condition of Leased Premises:

  	
   

  	
  Per Paragraph 6 of Fifth Amendment to Lease

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