Document:

Form of Indemnification Agreement

 Exhibit 10.1 
  
 INDEMNIFICATION AGREEMENT 
  
 This Indemnification Agreement (the “Agreement”) is entered into as of September 16, 2004 by and
between REMEC, Inc., a California corporation (the “Company”), and                         
(“Indemnitee”). 
  
 BACKGROUND

  
 A. The Company and Indemnitee recognize the increasing
difficulty in obtaining directors’ and officers’ liability insurance, the significant increases in the cost of such insurance and the general reductions in the coverage of such insurance. 
  
 B. 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 availability and coverage of liability insurance has been severely limited. 
  
 C. Indemnitee does not regard the current protection available as adequate
under the present circumstances and Indemnitee and other officers and directors of the Company may not be willing to continue to serve as officers and directors without additional protection. 
  
 D. 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. 
  
 E. The Bylaws of the company provide for the indemnification of directors,
officers, employees and other agents of the Company in certain circumstances, and certain of the Company’s directors and officers have entered into Indemnity Agreements with the Company. This Agreement shall, with respect to Indemnitee,
supersede any conflicting provisions in the indemnification section of the Company’s Bylaws and any Indemnity Agreement entered into by Indemnitee and the Company prior to the date of this Agreement. 

 AGREEMENT 
  
 NOW, THEREFORE, in consideration of Indemnitee’s continued services as a director or officer of the Company after the
date hereof and for other good and valid consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto 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 or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right 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, by reason of any action or inaction on the part of Indemnitee while an officer or director 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 or proceeding if Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in 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 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 (i) Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed
to be in the best interests of the Company or (ii) with respect to any criminal action or proceeding, Indemnitee 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 proceeding 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, by reason of any action or inaction on the part of Indemnitee while an officer or director 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, in each case to the extent actually and reasonably incurred by Indemnitee in connection with the defense or settlement of such action or proceeding if Indemnitee acted in
good faith and in a manner Indemnitee reasonably believed to be in the best interests of the Company and its shareholders, except that no indemnification shall be made (i) in respect of any claim, issue or matter as to which Indemnitee shall have
been adjudged to be liable to the Company in the performance of Indemnitee’s duty to the Company and its shareholders unless and only to the extent that the court in which such action or 
  

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 proceeding is or was pending shall determine upon application that, in view of all the circumstances of the case,
Indemnitee is fairly and reasonably entitled to indemnity for expenses and then only to the extent that the court shall determine, (ii) of amounts paid in settling or otherwise disposing of a pending action without court approval or (iii) of
expenses incurred in defending a pending action which is settled or otherwise disposed of without court approval. 
  

	 	2.	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 or proceeding referenced in Section 1(a) or 1(b) of this Agreement (but not amounts actually paid in settlement of any such action 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 20 days after delivery of a written request therefor by Indemnitee to the Company. 
  
 (b) Notice and Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to his or her right to be indemnified under this Agreement, under any statute, or under any provision of the
Company’s Articles of Incorporation or Bylaws, give the Company notice in writing as soon as practicable of any claim made against Indemnitee for which indemnification will or could be sought. Notice to the Company shall be directed as provided
for in Section 14 of this Agreement. 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. Promptly after receipt of a written request for
indemnification (and in any event within 90 days thereof), the Company shall either provide such indemnification or shall provide a written notice to Indemnitee advising of the decision not to indemnify Indemnitee and outlining the general basis for
the decision. If a claim for indemnification is not paid in full by the Company within such 90 day period and Indemnitee determines to dispute the Company’s decision not to provide indemnification, Indemnitee must advise the Company in
writing of both the decision to dispute the denial and his or her Selected Forum (a “Contest Notice”). Indemnitee shall be entitled to select from the following forums for determination of the validity of the Company’s
denial of indemnification (the forum selected by Indemnitee being the “Selected Forum”): 
  
 (i) A quorum of the board of directors of the Company (the “Board”) consisting of directors who are not parties to the proceeding
for which indemnification is being sought; 
  

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 (ii) Independent legal counsel selected by Indemnitee, and reasonably approved by the Board, which
counsel shall render its determination in a written opinion; or 
  
 (iii) A panel of three arbitrators, one of whom is selected by the Company, one of whom is selected by Indemnitee, and the last of whom is selected by the first two arbitrators selected. 
  
 As soon as practicable, and in no event later than 30 days after its receipt of the Contest
Notice, the Company shall, at its own expense, submit in writing to the Selected Forum an explanation of the substance validating its claim that Indemnitee is not entitled to indemnification. If the Selected Forum determines that Indemnitee is
entitled to indemnification, the determination shall be final and binding on the Company. If the Selected Forum determines that Indemnitee is not entitled to indemnification, Indemnitee may apply to the court in which the proceeding giving rise to
the indemnification is or was pending or any other court of competent jurisdiction for the purpose of enforcing Indemnitee’s right to indemnification. 
  
 (d) Defense/Burden. It shall be a defense to any such dispute or action (other than a dispute or action brought to enforce a claim for
expenses incurred in connection with any action 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, the burden of proving such defense shall be on the Company and Indemnitee shall be entitled to receive interim payments of expenses pursuant to Section 2(a) of this Agreement unless and until such defense may be finally
adjudicated by the Selected Forum, if applicable, or court order or judgment from which no further right of appeal exists, if Indemnitee appeals the decision of the Selected Forum pursuant to Section 2(c) of this Agreement. 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 Selected Forum or the court, as applicable, to decide, and neither the failure of the
Company (including the Board, any committee or subgroup of the Board, independent legal counsel or its shareholders) 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, any committee or subgroup of the Board, independent legal counsel or its shareholders) 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. 
  
 (e) Notice to Insurers. If, at the time of the receipt of a notice of a claim pursuant to Section 2(b) of this Agreement, the Company has
directors’ and officers’ liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures 
  

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 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 Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies. 
  
 (f) Selection of Counsel. In the event the Company shall be obligated under Section 2(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, which approval shall not be unreasonably withheld, upon the delivery to Indemnitee of written notice of
its election so to do. 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 borne by the Company. 
  

	 	3.	Additional Indemnification Rights; Nonexclusivity. 

  
 (a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby agrees to indemnify Indemnitee to the fullest extent
not prohibited by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement, the Company’s Articles 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 California 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 the 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 California 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 Articles of Incorporation, its Bylaws, any agreement, any vote of shareholders or disinterested directors, the California General
Corporation Law, 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 Indemnitee may have ceased to serve in such capacity at the time of any action or other covered proceeding. 
  

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 4. 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 amounts paid in settlement actually or reasonably incurred by Indemnitee in the investigation, defense, appeal or settlement of any civil or criminal action
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 amounts paid in settlement to which Indemnitee is entitled. 
  
 5. 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. 
  
 6. Directors’ and
Officers’ 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 directors’ and officers’ 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; or one of the Company’s key employees, if Indemnitee is not an officer or director but is a key employee. 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. 
  
 7. 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 or applicable law, to perform its obligations, or any of them, under this Agreement shall not constitute a breach of this 
  

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 Agreement. The provisions of this Agreement shall be severable as provided in this Section. 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. 
  
 8. Exceptions. Any other provision herein to the contrary notwithstanding, including, without limitation the provisions of Section 3(a) of
this Agreement, the Company shall not be obligated pursuant to the terms of this Agreement: 
  
 (a) Excluded Acts/Violation of Applicable Law. To indemnify Indemnitee for any acts or omissions or transactions from which a director may not be relieved of liability under the California General
Corporation Law or to take any action or fail to do any act in violation of applicable law or court order; or  
  
 (b) 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, the Company’s Articles of Incorporation or Bylaws, any statute or
law or as otherwise required under Section 317 of the California General Corporation Law and for which Indemnitee exhausted the demand procedures set forth at Section 2(c) of this Agreement. This shall not limit the Company’s ability to either
indemnify or advance expenses in specific cases if the Board finds it appropriate; or  
  
 (c) Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by 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 Indemnitee in such proceeding was not made in good faith or was frivolous; or 
  
 (d) 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 directors’ and officers’ liability insurance maintained by the Company; or

  
 (e) 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. 
  

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 9. Effectiveness of Agreement; Entire Agreement. To the extent that the indemnification
permitted under the terms of certain provisions of this Agreement exceeds the scope of the indemnification provided for in the California General Corporation Law, such provisions shall not be effective unless and until the Company’s Articles of
Incorporation authorize such additional rights of indemnification. In all other respects, the balance of this Agreement shall be effective as of the date set forth on the first page and may apply to acts or omissions of Indemnitee which occurred
prior to such date if Indemnitee was an officer, director, employee or other agent of the Company, 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, at the time such act or omission occurred. This Agreement, together with the Company’s Articles of Incorporation and the Company’s Bylaws, contains the entire agreement between the Company and Indemnitee with respect to
the matters contemplated by this Agreement and supercedes all prior agreements or understandings between the Company and Indemnitee regarding the subject matter set forth herein. 
  

	 	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, 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. 
  
 (c)
For purposes of this Agreement, references to a “subsidiary” shall mean any corporation, limited liability company, limited partnership or other entity of which securities or other ownership interests having ordinary voting power to elect
a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by the Company. 
  

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 11. Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall constitute an original. 
  
 12. Successors and
Assigns; Survival of Rights. The rights conferred on Indemnitee by this Agreement shall continue after Indemnitee has ceased to be a director or officer of the Company and shall inure to the benefit of Indemnitee’s estate, legal
representatives, executors and administrators. 
  
 13.
Attorneys’ Fees. In the event that any action, whether through a Selected Forum or court, as applicable, is instituted by Indemnitee under this Agreement to enforce or interpret any of the terms hereof, Indemnitee shall be
entitled to be paid all arbitration or court costs and expenses, including reasonable attorneys’ fees, incurred by Indemnitee with respect to such action, unless as a part of such action, the Selected Forum or court of competent jurisdiction,
as applicable, 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, on the date of receipt or (ii) if mailed by domestic certified or registered mail properly addressed and with postage prepaid, on the
third business day after the date postmarked. Addresses for notice to either party are as set forth 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 California 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 California. 
  
 16. Choice of Law.
This Agreement shall be governed by and its provisions construed in accordance with the laws of the State of California as applied to contracts between California residents entered into and to be performed entirely within California. 
  
 [Signatures to follow] 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement as of the date first
above written. 
  

					
	 THE COMPANY:
	 	 REMEC, INC.

			
	 	 	 By:
	 	  

			
	 	 	 [Name]
	 	 
			
	 	 	 Its:
	 	 
			
	 	 	 Address:
	 	 3790 Via de la Valle

	 	 	 	 	 Suite 311,

	 	 	 	 	 Del Mar, CA 92014

		
	 INDEMNITEE:
	 	  

		
	 	 	  

			
	 	 	 Address:
	 	 3790 Via de la Valle

	 	 	 	 	 Suite 311,

	 	 	 	 	 Del Mar, CA 92014Change of Control Agreement

 Exhibit 10.2 
  
 CHANGE OF CONTROL AND TRANSITION AGREEMENT 
  
 This Change of Control Agreement (the “Agreement”) is made and entered into effective as of November 9, 2004 (the
“Effective Date”), by and between Jack A. Giles (the “Executive”) and REMEC, Inc. (the “Company”). 
  
 R E C I T A L S 
  
 A. It is expected that the Company from time to time will consider the possibility of a Change of Control. The Board of Directors of the Company (the
“Board”) recognizes that such consideration can be a distraction to the Executive and can cause the Executive to consider alternative employment opportunities. 
  
 B. The Board believes that it is in the best interest of the Company and its shareholders to provide the Executive with an
incentive to continue his employment and to maximize the value of the Company upon a Change of Control for the benefit of its shareholders. 
  
 C. In order to provide the Executive with enhanced financial security and sufficient encouragement to remain with the Company notwithstanding the
possibility of a Change of Control, the Board believes that it is imperative to provide the Executive with certain benefits upon a Change of Control. 
  
 AGREEMENT 
  
 In consideration of the mutual covenants herein contained and the continued employment of Executive by the Company, the parties agree as follows:

  
 1. Definition of Change of Control. “Change of
Control” shall mean the occurrence of any of the following events: 
  
 (a) Merger or Consolidation: The completion of a merger or consolidation of the Company with any other corporation or entity, other than a merger or consolidation that would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the total voting power represented by
the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; 
  
 (b) Sale. The sale or other disposition of all or substantially all (that is, not less than 95% of the net book value) of the assets of the
Company, or its wholly owned subsidiary REMEC Defense & Space, Inc., to an unrelated corporation or entity; 
  
 (c) Liquidation: Any approval by the shareholders of the Company of a plan of complete liquidation of the Company; 
  

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 (d) Acquisition of Fifty Percent Voting Power: Any “person” (as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becoming the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing fifty percent (50%)
or more of the total voting power represented by the Company’s then outstanding voting securities; or 
  
 (e) Change in Composition of the Board: A change in the composition of the Board, as a result of which less than a majority of the directors are
incumbent directors. “Incumbent Directors” shall mean directors who either: (i) are directors of the Company as of the date hereof; or (ii) are elected, or nominated for election, to the Board with the affirmative votes of at least a
majority of those directors whose election or nomination was not in connection with any transaction described in subsections (a), (b), (c) or (d) or in connection with an actual or threatened proxy contest relating to the election of directors of
the Company. 
  
 2. Term of Agreement. This Agreement shall
terminate upon the date that all obligations of the parties hereto under this Agreement have been satisfied. 
  
 3. At-Will Employment. The Company and the Executive acknowledge that the Executive’s employment is and shall continue to be at-will, as
defined under applicable law. If the Executive’s employment terminates for any reason, the Executive shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement, or as may otherwise
be established under the company’s then existing employee benefit plans or policies at the time of termination. 
  

	 	4.	Option Acceleration and Change of Control Benefits. 

  
 (a) Option Acceleration. Upon a Change of Control, all unvested options, restricted stock units and other forms of equity compensation granted to
the Executive by the Company prior to such Change of Control shall immediately vest and become fully exercisable. 
  
 (b) Change of Control Benefits. 
  
 (i) Benefits. Upon a Change of Control, the Executive shall be entitled to receive as benefits (“Change of Control Benefits”) a sum
equal to: (1) eighteen (18) months of his annualized base salary as in effect immediately prior to the Change of Control; and (2) one and one-half times the average of any annual bonuses received from the Company during the two years prior to such
Change of Control. Such Change of Control Benefits shall be paid in equal monthly installments in accordance with the Company’s normal payroll practices. In addition, during the period of payment of such Change of Control Benefits, the Company
shall continue to make available to the Executive and Executive’s spouse and dependents all group medical, dental or other health plans, any disability or life insurance plans and other similar insurance plans in which Executive or
Executive’s spouse or dependents participate on the date of the Executive’s termination on the same basis as before such termination. 
  

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 (c) Other Termination. If the Executive’s employment with the Company terminates prior to a
Change of Control, then the Executive shall not be entitled to receive Change of Control Benefits hereunder, but may be eligible for those benefits (if any) as may then be established under the Company’s then existing severance and benefits
plans and policies at the time of such termination. 
  
 (d)
Health-Related Benefits. Upon the termination of the Change of Control Benefits under this Agreement, or at the time the Executive’s employment with the Company terminates for any other reason, the Company shall continue for Executive
and for Executive’s spouse, medical, dental and vision insurance upon the payment to the Company of the same monthly premiums for such insurance as are being paid from time to time by the Company’s corporate executives, until the death of
both the Executive and Executive’s spouse. 
  
 (e) Accrued
Wages and Vacation; Expenses and Equipment. Without regard to the reason for, or the timing of, Executive’s termination of employment: (i) the Company shall pay the Executive any unpaid base salary due for periods prior to the date of
termination; (ii) the Company shall pay the Executive all of the Executive’s accrued and unused vacation through the date of termination; and (iii) following submission of proper expense reports by the Executive, the Company shall reimburse the
Executive for all expenses reasonably and necessarily incurred by the Executive in connection with the business of the Company prior to the date of termination. These payments shall be made promptly upon termination and within the period of time
mandated by law. In addition, Executive may retain all his office furniture, computers, copiers, fax machines, and similar items currently at his home. 
  

	 	5.	Successors. 

  
 (a) Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase, lease, merger, consolidation,
liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the Company’s obligations under this Agreement and agree expressly to perform the Company’s obligations under this Agreement in
the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s
business and/or assets which executes and delivers the assumption agreement described in this subsection (a) or which become bound by the terms of this Agreement by operation of law. 
  
 (b) Executive’s Successors. Without the written consent of the Company, Executive shall not assign or transfer
this Agreement or any right or obligation under this Agreement to any other person or entity. Notwithstanding the foregoing, the terms of this Agreement and all rights of Executive hereunder shall inure to the benefit of, and be enforceable by,
Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
  

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	 	6.	Notices. 

  
 (a) General. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given
when personally delivered or when mailed by U.S. registered or certified mail, return receipt request and postage prepaid. In the case of the Executive, mailed notices shall be addressed to him at the home address that he most recently communicated
to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary. 
  
 (b) Notice of Termination. Any termination by the Company or by the
Executive shall be communicated by a notice of termination to the other party hereto given in accordance with this Section. Such notice shall indicate the specific termination provision in this Agreement relied upon, shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated. The failure by the Executive to include in the notice any fact or circumstance which contributes to a showing of Involuntary Termination
shall not waive any right of the Executive hereunder or preclude the Executive from asserting such fact or circumstance in enforcing his rights hereunder. 
  
 7. Nonsolicitation Of Employees. For a period of eighteen (18) months following the termination of the Executive’s employment with the
Company, for any reason, the Executive will not, directly or indirectly, induce any employee of the Company or any of its subsidiaries to terminate employment with such entity, and shall not, directly or indirectly, either individually or as owner,
agent, employee, consultant, or otherwise, employ or offer employment to any person who is or was employed by the Company or a subsidiary thereof. 
  

	 	8.	Excise Tax Adjustments. 

  
 (a) Effect of Application of Excise Tax. In the event that the Executive becomes entitled to Change of Control Benefits under Section 4(b)(i) herein, and
the Company determines that the Change of Control Benefits or the benefit of the acceleration provided in Section 4(a) (with the Change of Control Benefits, the “Total Payments”) will be subject to the tax (the “Excise Tax”)
imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any similar tax that may hereafter be imposed, the Company shall compute the “Net After-Tax Amount,” and the “Reduced Amount,”
and shall adjust the Total Payments as described below. The Net After-Tax Amount shall mean the present value of all amounts payable to the Executive hereunder, net of all federal income, excise and employment taxes imposed on the Executive by
reason of such payments. The Reduced Amount shall mean the largest aggregate amount of the Total Payments that if paid to the Executive would result in the Executive receiving a Net After-Tax Amount that is equal to or greater than the Net After-Tax
Amount that the Executive would have received if the Total Payments had been made. If the Company determines that there is a Reduced Amount, the Total 
  

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 Payments will be reduced to the Reduced Amount. Such reduction shall be made by the Company with respect to benefits in
the order and in the amounts suggested by the Executive, except to the extent that the Company determines that a different reduction or set of reductions would significantly reduce the costs or administrative burdens of the Company. 
  
 (b) Tax Computation. For purposes of determining whether the Total
Payments will be subject to the Excise Tax and the amounts of such Excise Tax and for purposes of determining the Reduced Amount and the Net After-Tax Amount: 
  

(i) Any other payments or benefits received or to be received by the Executive in connection with a Change in Control of the Company or the
Executive’s termination of employment (whether pursuant to the terms of this Plan or any other plan, arrangement, or agreement with the Company, or with any individual, entity, or group of individuals or entities (individually and collectively
referred to in this subsection (b) as “Persons”) whose actions result in a change in control of the Company or any Person affiliated with the Company or such Persons) shall be treated as “parachute payments” within the meaning of
Section 280G(b)(2) of the Code, and all “excess parachute payments” within the meaning of Section 280G(b)(1) of the Code shall be treated as subject to the Excise Tax, unless in the opinion of a tax advisor selected by the Company and
reasonably acceptable to the Executive (“Tax Counsel”), such other payments or benefits (in whole or in part) should be treated by the courts as representing reasonable compensation for services actually rendered (within the meaning of
Section 280G(b)(4)(B) of the Code), or otherwise not subject to the Excise Tax; 
  
 (ii) The amount of the Total Payments that shall be treated as subject to the Excise Tax shall be equal to the lesser of (i) the total amount of the Total Payments; or (ii) the amount of excess parachute payments
within the meaning of Section 280G(b)(1) of the Code (after applying clause (i) above); 
  
 (iii) In the event that the Executive disputes any calculation or determination made by the Company, the matter shall be determined by Tax Counsel. All fees and expenses of Tax Counsel shall be borne solely by the
Company. 
  
 (iv) The Executive shall be deemed to pay federal
income taxes at the highest marginal rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be made, and state and local income taxes at the highest marginal rate of taxation in the state and locality of the
Executive’s residence on the effective date of employment, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes, taking into account the reduction in itemized deduction under
Section 68 of the Code. 
  

	 	9.	Arbitration. 

  
 (a) Disputes or Controversies. Except as provided in Section 8, above, any dispute or controversy arising out of, relating to, or in connection
with this 
  

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 Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof, shall be settled
by binding arbitration to be held in San Diego, California, in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association (the “Rules”). The arbitrator may grant
injunctions or other relief in such dispute or controversy. The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having
jurisdiction. 
  
 (b) Governing Law. The arbitrator(s)
shall apply California law to the merits of any dispute or claim, without reference to conflicts of law rules. The arbitration proceedings shall be governed by federal arbitration law and by the Rules, without reference to state arbitration law.
Executive hereby consents to the personal jurisdiction of the state and federal courts located in California for any action or proceeding arising from or relating to this Agreement or relating to any arbitration in which the parties are
participants. 
  
 (c) At-Will Employment Status. Executive
understands that nothing in this Section modifies Executive’s at-will employment status. Either Executive or the Company can terminate the employment relationship at any time, with or without cause. 
  
 (d) ACKNOWLEDGEMENT. EXECUTIVE HAS READ AND UNDERSTANDS THIS SECTION,
WHICH DISCUSSES ARBITRATION. EXECUTIVE UNDERSTANDS THAT SUBMITTING ANY CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF TO BINDING
ARBITRATION TO THE EXTENT PERMITTED BY LAW, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EXECUTIVE ‘S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP,
INCLUDING BUT NOT LIMITED TO, THE FOLLOWING CLAIMS: 
  
 (i) ANY
AND ALL CLAIMS OF WRONGFUL DISCHARGE OF EMPLOYMENT; BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIES; BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT
OR INTENTIONAL MISREPRESENTATION; NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION. 
  
 (ii) ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE OR MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, TITLE VII OF THE CIVIL RIGHTS ACT OF
1964, THE CIVIL RIGHTS ACT OF 1991, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, THE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, AND LABOR CODE SECTION 201, et
seq.; 
  

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 (iii) ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND REGULATIONS RELATING TO EMPLOYMENT OR
EMPLOYMENT DISCRIMINATION. 
  

	 	10.	Miscellaneous Provisions. 

  
 (a) No Duty to Mitigate. The Executive shall not be required to mitigate the amount of any payment contemplated by this Agreement, nor shall any
such payment be reduced by any earnings that the Executive may receive from any other source. 
  
 (b) Waiver. No provision of this Agreement may be modified, waived or discharged unless the modification, waiver or discharged unless the modification, waiver or discharge is agreed to in writing and signed by
the Executive and by an authorized officer of the Company (other than the Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of
any other condition or provision or of the same condition or provision at another time. 
  
 (c) Integration. This Agreement and the stock option agreements representing the Options represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all
prior or contemporaneous agreements, whether written or oral. 
  
 (d) Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the internal substantive laws, but not the conflicts of law rules, of the State of California. 
  
 (e) Severability. The invalidity or unenforceability of any provision
or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 
  
 (f) Employment Taxes. All payments made pursuant to this Agreement shall be subject to withholding of applicable income and employment taxes.

  
 (g) Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument. 
  

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 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its
duly authorized officer, as of the day and year first above written. 
  

					
	 COMPANY:
	 	 EXECUTIVE

			
	 By:
	 	 /s/ THOMAS H. WAECHTER

	 	 /s/ JACK A. GILES

	 	 	 Thomas H. Waechter
	 	 Jack A. Giles

	 	 	 President and CEO
	 	 

  

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