Document:

Exhibit
10.2

 

EMPLOYMENT
AGREEMENT

 

This Agreement is entered
into by and between August Technology Corporation (“August Technology ” or the
“Company”), a Minnesota corporation, with its principal place of business at
4900 West 78th Street, Bloomington, Minnesota 55435, and Ardelle
Johnson (“Employee”).

 

WHEREAS, Employee
desires employment with August Technology or has been employed with August
Technology and wishes to continue employment under the terms and conditions set
forth in this Agreement;

 

WHEREAS, Employee
acknowledges and agrees that he has and will continue to have access to
confidential, proprietary and trade secret information in the course of his/her
employment and continued employment with August Technology, the unauthorized
use or disclosure of which would cause irreparable harm to August Technology;

 

WHEREAS, August
Technology and Employee wish to set forth the terms of their agreement in
writing;

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants contained herein and
for other good and valuable consideration the receipt and sufficiency of which
is specifically acknowledged by the parties, August Technology and Employee
agree as follows:

 

1.                                      Employment.  August Technology agrees to employ or
continue to employ Employee, effective August 18, 2003, and Employee accepts
employment or continued employment, upon the terms and conditions set forth in
this Agreement.

 

2.                                      Term of
Employment.  August
Technology shall continue to employ Employee for an indefinite duration until
his/her employment is terminated in accordance with Paragraph 8 of this
Agreement.

 

3.                                      Duties
and Responsibilities.  Employee
shall devote his/her time, attention and best efforts to the duties and
responsibilities of his/her position, and to the business and affairs of August
Technology.  Employee’s title shall be
as set forth in Exhibit A as “Employee’s Title”, reporting to the person or
office as set forth in Exhibit A as “Manager”. 
Employee shall perform all duties and responsibilities of the position
he/she holds with August Technology as those duties and responsibilities may
change from time to time.  Employee
shall comply with August Technology’s standards, policies and procedures in
effect and as they may change from time to time; provided that to the extent
such policies and procedures are inconsistent with this Agreement, the
provisions of this Agreement shall control.

 

4.                                      Compensation.  August Technology shall pay Employee a gross
annual salary as set forth in Exhibit A as “Base Salary”, less appropriate
payroll deductions.  Employee may also
receive incentive compensation in accordance with the Annual Incentive Plan, as
issued and as may change from time to time by the Company, or any other similar
plan authorized by the Board of Directors. 
Employee’s compensation may be periodically increased or adjusted as
authorized by the Board of Directors in the case of the Chief Executive
Officer, or, in the case of all others, as recommended by the Chief Executive
Officer and approved by the Board of Directors.

 

 

5.                                      Business
Expenses.  August
Technology will, in accordance with its policies and practices as such may
change from time to time, reimburse Employee for all ordinary and necessary
business expenses after receipt of appropriate documentation of such expenses.

 

6.                                      Benefits.  Employee shall be entitled to insurance and
other benefits provided to key management employees in accordance with
applicable plan documents and commensurate with vice president and higher
positions within the Company.  Benefits
provided to employees are subject to change in the discretion of August
Technology.

 

7.                                      Stock
Options.  At the discretion of August Technology,
Employee may be granted stock options from time to time, which options shall be
subject to the terms and conditions of the August Technology Corporation 1997
Stock Option Plan, as amended from time to time, or any successor plan, and the
related stock option agreements. 
Further, Employee shall be eligible to participate in the August
Technology Corporation 2000 Employee Stock Purchase Plan, as amended from time
to time, or any successor plan, subject to the terms and conditions contained
therein.

 

8.                                      Termination.  Employee’s employment under this Agreement
may be terminated:

 

(a)                                  At
any time upon mutual written agreement of the parties;

 

(b)                                 By
either Employee or August Technology at any time, with or without cause, upon
thirty (30) days’ written notice to the other;

 

(c)                                  By
August Technology immediately upon notice to Employee for cause which shall be
defined as:

 

(i)                                     Employee’s
material failure or neglect, or refusal to perform, the duties and
responsibilities of his/her position and/or the reasonable direction of the
Board of Directors or his/her superiors;

 

(ii)                                  Commission
by Employee of any willful, intentional or negligent act that has the effect of
injuring the reputation, business or performance of August Technology;

 

(iii)                               Employee’s
conviction of a crime, or commission of any act involving moral turpitude;

 

(iv)                              Any
material default or nonperformance of the terms of this Agreement, or any
violation of Paragraphs 10, 11, 12, 14 and/or 15 of this Employment Agreement;
or

 

2

 

(d)                                 Employee’s
employment will terminate immediately upon his/her death.

 

Upon Employee’s
resignation or termination under this Paragraph 8 for any reason, August
Technology shall pay Employee his/her Base Salary through the Employee’s last
date of employment, and any accrued and unused vacation or other paid time off
through the Employee’s last date of employment.  Employee’s entitlement to any vested pension, profit sharing or
other benefits shall be governed by applicable plan documents.  In the event Employee’s employment is
terminated either by Employee or August Technology under Paragraph 8 (b),
August Technology may elect, in its sole discretion, to pay Employee his/her
salary for the thirty (30) day notice period in lieu of Employee’s continued
performance of duties during the notice period.  In the event Employee is terminated by August Technology in
accordance with Paragraph 8 (b), August Technology shall, in addition to the
above, pay Employee a severance at his/her then current Base Salary rate for
the time period as set forth in Exhibit A as “Severance Period”, to be paid according
to the normal payroll schedule, directly following the thirty (30) day notice
period, and August Technology shall, if the Employee elects to continue group
health or other group benefits as allowed by COBRA, make the COBRA payments for
the Severance Period.  Employee shall
not be entitled to any further or other payments or benefits of any kind upon
the Employee’s termination or resignation under this Paragraph 8.  In the event, Employee is entitled to Change
in Control benefits as set forth in Paragraph 9, Employee shall not be entitled
to any severance or notice rights under this Paragraph 8.

 

9.                                      Change
in Control.  If, within eighteen
(18) months following a Change in Control (as defined below), Employee’s
employment is terminated (as defined below), then:

 

(a)                                  Employee
shall be paid his/her last Base Salary on a regular payroll cycle as of the
effective date for the time period as set forth in Exhibit A as “Change In
Control Severance Period” from the effective date of such termination;

 

(b)                                 For
the same Change In Control Severance Period from the effective date of such
termination as set forth in Paragraph 9(b), the Company shall, if Employee
elects to continue group health or other group benefits as allowed under COBRA,
make the COBRA payments for the Change In Control Severance Period;

 

(c)                                  The
right to exercise all unexpired and non-vested stock options in favor of
Employee shall immediately vest and accelerate; and

 

(d)                                 Limitation
on Change of Control Payments. 
Employee shall not be entitled to receive any Change of Control Action,
as defined below, which would constitute an “excess parachute payment” for
purposes of Code Section 280G, or any successor provision, and the regulations
thereunder.  In the event any Change of
Control Action payable to Employee would constitute an “excess parachute
payment,” then the acceleration of the

 

3

 

exercisability of such
stock options and the payments to such Participant pursuant to this Paragraph 9
shall be reduced to the largest extent or amount as will result in no portion
of such payments being subject to the excise tax imposed by Section 4999 of the
Code.  For purposes of this Paragraph 9,
a “Change of Control Action” shall mean any payment, benefit or transfer of
property in the nature of compensation paid to or for the benefit of Employee
under any arrangement which is considered contingent on a Change of Control for
purposes of Code Section 280G, including, without limitation, any and all
salary, bonus, incentive, restricted stock, stock option, compensation or
benefit plans, programs or other arrangements, and shall include benefits
payable under this Agreement.

 

(e)                                  “Change of Control.”  For purposes of this Agreement, “Change of
Control” shall mean any of the following events occurring after the date of
this Agreement:

 

(1)                                  A
merger or consolidation to which the Company is a party, an acquisition by the
Company involving the issuance of the Company’s securities as consideration for
the acquired business, or any combination of fully closed and completed
mergers, consolidations or acquisitions during any consecutive twenty-four (24)
month period, if the individuals and entities who were shareholders of the
Company immediately prior to the effective date of such merger, consolidation,
or acquisition (or prior to the effective date of the first of a combination of
such transactions) have, immediately following the effective date of such
merger, consolidation or acquisition (or following the effective date of the
last of a combination of such transactions), beneficial ownership (as defined
in Rule 13d-3 under the Securities Exchange Act of 1934) of less than fifty
percent (50%) of the total combined voting power of all classes of securities
issued by the surviving corporation for the election of directors of the
surviving corporation;

 

(2)                                  The
acquisition of direct or indirect beneficial ownership (as defined in Rule
13d-3 under the Securities Exchange Act of 1934) of securities of the Company
by any person or entity or by a group of associated persons or entities acting
in concert in one or a series of transactions, which causes the aggregate
beneficial ownership of such person, entity or group to equal or exceed +twenty
percent (20%) or more of the total combined voting power of all classes of the
Company’s then issued and outstanding securities;

 

4

 

(3)                                  The
sale of the properties and assets of the Company substantially as an entirety,
to any person or entity which is not a wholly-owned subsidiary of the Company;

 

(4)                                  The
stockholders of the Company approve any plan or proposal for the liquidation of
the Company; or

 

(5)                                  A
change in the composition of the Board of the Company at any time during any
consecutive twenty-four (24) month period such that the “Continuity Directors”
no longer constitute at least a seventy percent (70%) majority of the Board.
For purposes of this event, “Continuity Directors” means (i) those members of
the Board who were directors at the beginning of such consecutive twenty-four
(24) month period or at the date of this Agreement if this Agreement was
entered into less than twenty-four months prior to the change in composition of
the Board; and (ii) any new director whose election to the Board of Directors
or nominations for election to the Board of Directors was approved by a vote of
at least two-thirds (2/3) of the directors identified in the immediately
preceding clause (i).

 

(6)                                  The
Company enters into a letter of intent, an agreement in principle or a
definitive agreement relating to an event described in Paragraph 9(e)(1),
9(e)(2), 9(e)(3), 9(e)(4), or 9(e)(5) that ultimately results in such a Change
of Control, or a tender or exchange offer or proxy contest is commenced that
ultimately results in an event described in Paragraph 9(e)(2) or 9(e)(5).

 

(f)                                    Termination.  For purposes of this Paragraph 9,
“Termination” shall mean any of the following events occurring within eighteen
(18) months after a Change of Control:

 

(1)                                  The termination of Employee’s employment by the
Company for any reason, with or without cause, except for termination resulting
from conduct by Employee constituting (a) a felony involving moral turpitude
under either federal law or the law of the State of Minnesota, or (b) Employee’s
willful failure to fulfill his/her employment duties with the Company;
provided, however, that for purposes of this clause (c), an act or failure to
act by Employee shall not be “willful” unless it is done, or omitted to be
done, in bad faith and without any reasonable belief that Employee’s action or
omission were in the best interests of the Company; or

 

(2)                                  The termination of employment with the Company by
Employee for Good Reason.  Such
termination shall be accomplished by, and

 

5

 

effective
upon, Employee giving written notice to Company of his/her decision to
terminate.  “Good Reason” shall mean a
good faith determination by Employee, in Employee’s sole and absolute judgment,
that any one or more of the following events has occurred, at any time during
the term of this Agreement or after a Change of Control; provided, however,
that such event shall not constitute “Good Reason” if Employee has expressly
consented to such event in writing or if Employee fails to provide written
notice of his/her decision to terminate within sixty (60) days of the
occurrence of such event:

 

(a)                                  A material change in Employee’s reporting
responsibilities, titles or offices, or any removal of Employee from or any
failure to re-elect Employee to any of such positions, which has the effect of
materially diminishing Employee’s responsibility or authority;

 

(b)                                 A reduction by the Company in Employee’s base
salary (as increased from time to time);

 

(c)                                  A requirement imposed by the Company on Employee
that results in Employee being based at a location that is outside of a
twenty-five (25) mile radius of Employee’s prior job location;

 

(d)                                 Without the adoption of a replacement plan,
program or arrangement that provides benefits to Employee that are equal to or
greater than those benefits that are discontinued or adversely affected:

 

i.                                          A failure by the Company to continue in effect,
within its maximum stated term, any pension, bonus, incentive, stock ownership,
stock purchase, stock option, life insurance, health, accident, disability, or
any other employee compensation or benefit plan, program or arrangement, in
which Employee is or has been participating;

 

ii.                                       The taking of any action by the Company that
would adversely affect Employee’s participation or materially reduce Employee’s
benefits under any of such plans, programs or arrangements; or

 

6

 

(e)                                  Any action by the Company that would materially
adversely affect the physical conditions in or under which Employee performs
his/her employment duties; or

 

(f)                                    Any material breach by the Company of this
Employment Agreement between Employee and the Company.

 

Termination for “Good Reason” shall not include
Employee’s death or a termination for any reason other than the events
specified in clauses (a) through (f) above.

 

10.                               Confidential
Information.  During the term of
this Agreement and at all times thereafter, Employee shall not directly or
indirectly use or disclose any trade secret, proprietary or confidential
information of August Technology or any subsidiary for the benefit of any
person or entity other than August Technology or any subsidiary without prior
written approval of August Technology’s Board of Directors.  For purposes of this Agreement, in addition
to all materials and information protected by applicable statute or law, the
parties acknowledge that confidential information shall include any
information, whether in print, on computer disc or tape or otherwise, which is not
public information and which relates to August Technology or any subsidiary, or
August Technology’s or any subsidiary’s existing or reasonably foreseeable
business, including but not limited to information relating to research,
development, technology, manufacturing processes, purchasing and sales,
information relating to sales and other financial strategies, plans and/or
goals, information relating to proprietary rights and data, ideas, know-how,
and/or trade secrets, information regarding the identity and/or needs of
clients or customers, client or customer lists and other client or customer
information, information regarding active and inactive accounts of August
Technology or any subsidiary, and information relating to August Technology’s
or any subsidiary’s methods of operation.

 

11.                               Noncompetition
Obligations.  As a condition to
and in consideration of his/her employment and continued employment, and in
exchange for the severance and Change of Control provisions as set forth in
Paragraphs 8 and 9 of this Employment Agreement, and the mutual covenants
herein, Employee agrees that, during his/her employment and for a period of one
(1) year following his/her voluntary or involuntary resignation or termination
for any reason, the Employee will not, on behalf of himself/herself or any
other person or entity:

 

(a)                                  Directly or indirectly solicit, on Employee’s own
behalf, or on behalf of another, any of August Technology’s or any subsidiary’s
customers or potential customers with whom Employee or Employee’s supervisees
had contact, either directly or indirectly, within the twelve months
immediately preceding Employee’s resignation or termination of employment, for
the purpose of providing, selling, or attempting to sell any products or
services competing with those provided or sold by August Technology or any
subsidiary, or clearly contemplated thereby due to research, development,

 

7

 

engineering,
applications, licensing, or other like projects in process, at the time of
resignation or termination; or

 

(b)                                 hire
or attempt to hire, or influence or solicit, or attempt to influence or
solicit, either directly or indirectly, any employee of August Technology or
any subsidiary to leave or terminate his/her or her employment, or to work for
any other person or entity.

 

12.                               Work Product and Inventions.  August Technology shall be entitled to all
of the benefits, profits, results and work product arising from or incident to
all work, services, advice and activities of Employee, including without
limitation all rights in inventions (as set forth below), trademark or trade
name creations, and copyrightable materials. 
Employee shall not, during the term of his/her employment by August Technology,
be interested, directly or indirectly, in any manner, including, but not
limited to, as partner, officer, advisor, or in any other capacity in any other
business similar to, or in competition with, August Technology’s or any
subsidiary’s business.

 

Employee agrees to
communicate promptly and fully to August Technology all inventions,
discoveries, improvements or designs conceived or reduced to practice by
Employee during the period of his/her employment with August Technology (alone
or jointly with others), and, except as provided in this Paragraph 12, Employee
will and hereby does assign to August Technology and/or its nominees all of the
Employee’s right, title and interest in such inventions, discoveries,
improvements or designs and all of his/her right, title and interest in any patents,
patent applications or copyrights based thereon without obligation on the part
of August Technology or any subsidiary to make any further compensation,
royalty or payment to Employee. 
Employee further agrees to assist August Technology and/or its nominee
(without charge but at no expense to Employee) at any time and in every proper
way to obtain and maintain for its and/or their own benefit, patents for all
such inventions, discoveries and improvements and copyrights for all such
designs.

 

This Agreement does not
obligate Employee to assign to August Technology any invention, discovery,
improvement or design for which no equipment, supplies, facility or trade
secret information of August Technology or any subsidiary was used and which
was developed entirely on Employee’s own time, and (1) which does not relate
(a) directly to the business of August Technology or any subsidiary, or (b) to
August Technology’s or any subsidiary’s actual or demonstrably anticipated
research or development, or (2) which does not result from any work performed
by Employee for August Technology or any subsidiary.

 

13.                               Exempt
Inventions.  Identified under
Exempt Inventions in Exhibit A by descriptive title are all of the Inventions,
if any, in which Employee possesses any right, title or interest prior to
Employee’s employment with August Technology or execution of this Employment
Agreement which are not subject to the terms hereof.

 

14.                               Copyrights.  Employee acknowledges that any
documents, drawings, computer software or other work of authorship prepared by
Employee within the scope of his/her employment is a “work made for hire” under
U.S. copyright laws and that, accordingly, August Technology

 

8

 

exclusively owns all copyright rights in such works of authorship.  For purposes of this paragraph, “scope of
employment” means that the work of authorship (a) relates to any subject matter
pertaining to his/her employment, (b) relates to or is directly or indirectly
connected with the existing or reasonably foreseeable business, products,
projects or confidential information of August Technology or any subsidiary, or
(c) involves the use of any time, material or facility of August Technology or
any subsidiary.

 

15.                               Return
of Property.  Employee shall,
immediately upon his/her involuntary or voluntary resignation or termination
from employment for any reason, deliver to August Technology all documents and
other items, whether on computer disc or tape or otherwise, including all
copies thereof, belonging to August Technology or any subsidiary or in any way
related to the business of August Technology or any subsidiary or the services
Employee performed for August Technology or any subsidiary, including but not
limited to any documents or items containing trade secret, proprietary, or
confidential information, documents in any way relating to any inventions or
copyrights, client or customer information, information relating to August
Technology’s or any subsidiary’s processes or procedures and any other
materials or documents of any sort relating to August Technology or any
subsidiary.  Employee shall not retain
any copies or summaries of any kind of documents and materials covered by this
Paragraph 15.

 

16.                               Remedy
upon Violation.  Employee and
August Technology agree that a breach or threatened breach of Paragraphs 10,
11, 12, 14 or 15 would cause irreparable harm to August Technology and/or its
subsidiaries, and that monetary damages alone would not be an adequate remedy.  Employee agrees that August Technology and
any subsidiary shall be entitled, in addition to any other remedy it may have
at law or in equity, to an injunction, without the posting of a bond if allowed
by applicable law or with the posting of a minimal bond if required, enjoining
or restraining Employee from any violation or violations or threatened
violation or violations of Paragraphs 10, 11, 12, 14 and 15, and/or for
specific performance of duties and obligations under such paragraphs, and
Employee hereby consents to the issuance of such injunction.  If any rights or restrictions contained in
Paragraphs 10, 11, 12, 14 and 15 shall be deemed to be unenforceable by reason
of the extent, duration or geographic scope, or other provision thereof, the
parties contemplate that the Court shall reduce such extent, duration or
geographic scope or other provision and enforce Paragraphs 10, 11, 12, 14 and
15 in their reduced form for all purposes in the manner contemplated by such
Paragraphs.

 

17.                               Other Agreements.  By Employee’s signature to this Agreement,
Employee warrants that he/she is not subject to any employment, noncompetition,
confidentiality, inventions or other obligations or agreements which would
prevent or restrict the Employee in any way from accepting employment with August
Technology and fully performing his/her duties and responsibilities as
described in this Agreement.  Employee,
by his/her signature to this Agreement, further warrants that he/she has not
taken and will not take any trade secret, proprietary or confidential
information of any former employer, and will not use or disclose any such
information to anyone in the performance of duties and responsibilities under
this Agreement.

 

9

 

18.                               Successors and Assigns.  This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of August Technology.

 

19.                               Notices.  All notices and other communications to be
given under this Agreement shall be in writing and shall be deemed to be given
when delivered personally, or when mailed by registered or certified mail,
addressed to the party to whom such notice is intended to be given, at the last
known address for that party or at such other address as the party may specify
by written notice.

(a)                                  In
the case of August Technology, the notice shall be provided to:

 

General Counsel

August Technology
Corporation

4900 West 78th
Street

Bloomington, MN 55435

 

(b)                                 In
the case of Employee, the notice shall be provided to:

 

Ardelle Johnson

19725 Waterford Pl

Shorewood, MN 55331

 

Either party may, by
written notice hereunder, designate a change of address.  Any notice, if mailed properly addressed,
postage prepaid, registered or certified mail, shall be deemed dispatched on
the registered date or that stamped on the certified mail receipt, and shall be
deemed received within the fifth business day thereafter, or when it is
actually received, whichever is sooner.

 

20.                               Survival of Provisions.  Employee acknowledges and agrees that
the restrictions and obligations set forth in Paragraphs 10, 11, 12, 13, 14, 15
and 16 of this Agreement are reasonable, shall survive his/her resignation from
or the termination of his/her employment, and shall apply to him/her whether
his/her resignation or termination from employment is voluntary or involuntary
and regardless of the reason for such resignation or termination.

 

21.                               Nonwaivers.  No failure on the part of either party to
exercise, and no delay in exercising, any right or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right or remedy hereunder preclude any other or further exercise thereof or the
exercise of any right or remedy granted hereby or by any related document or by
law.

 

22.                               Governing
Law.  This Agreement shall be construed
and interpreted according to the laws of the State of Minnesota, without
reference to its conflict of laws provisions.

 

23.                               Paragraph
Headings.  Paragraph headings
are included in this Agreement for convenience of reference only, and are not
intended to be full or accurate descriptions of the contents hereof.

 

10

 

24.                               Counterparts.
 This Agreement may be executed in
two (2) or more counterparts, each of which shall be deemed an original, but
all of which shall constitute one (1) and the same instrument.

 

25.                               Entire
Agreement.  This Agreement
states the entire Agreement of the parties on the subjects set forth herein,
and merges and supersedes all prior agreements and understandings between the
parties.  No modification, termination,
or attempted waiver of any provision of this Agreement will be valid unless it
is made in writing and signed by the party against whom the same is sought to
be enforced, and is specifically identified as a modification, termination,
release, waiver or discharge of this Agreement.  If any term, clause or provision of this Agreement shall for any
reason be adjudged invalid, unenforceable or void, the same shall not impair or
invalidate any of the other provisions contained herein, all of which shall be
performed in accordance with their respective terms.

 

	
   

  	
  AUGUST
  TECHNOLOGY CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:  September 17, 2003

  	
  By

  	
  /s/ DAVID L. KLENK

  	
   

  
	
   

  	
   

  	
  Its 

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:  September 9, 2003

  	
  By

  	
  /s/ ARDELLE JOHNSON

  	
   

  
	
   

  	
   

  	
  Employee

  
								

 

11

 

EXHIBIT A

 

 

	
  Employee’s Name

  	
   

  	
  =

  	
  Ardelle Johnson

  
	
   

  	
   

  	
   

  	
   

  
	
  Employee’s Title

  	
   

  	
  =

  	
  VP, Strategic Marketing

  
	
   

  	
   

  	
   

  	
   

  
	
  Manager

  	
   

  	
  =

  	
  Jeff O’Dell, & CEO

  
	
   

  	
   

  	
   

  	
   

  
	
  Base Salary

  	
   

  	
  =

  	
  $145,000

  
	
   

  	
   

  	
   

  	
   

  
	
  Severance Period

  	
   

  	
  =

  	
  twelve (12) months

  
	
   

  	
   

  	
   

  	
   

  
	
  Change In Control
  Severance Period

  	
   

  	
  =

  	
  eighteen (18) months

  
	
   

  	
   

  	
   

  	
   

  
	
  Exempted Inventions

  	
   

  	
  =

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Initials of approval:

  	
   

  	
  AUGUST TECHNOLOGY CORP.

  	
   

  	
  DLK

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EMPLOYEE

  	
   

  	
  AJ

  

 

12EXHIBIT
10.1

 

FORM OF SECURITIES PURCHASE AGREEMENT

 

Microvision, Inc.

19910 North Creek Parkway

Bothell, Washington 98011

Attention: Chief Executive Officer

 

Ladies and
Gentlemen:

 

Microvision, Inc.,
a Washington corporation (the “Company”), proposes to issue and sell to certain
investors shares (the “Shares”) of Common Stock, no par value (the “Common
Stock”), of the Company.  The Company
intends to engage C.E. Unterberg, Towbin (the “Placement Agent”) as its exclusive placement
agent in connection with such issuance and sale.  The Shares are described in and offered under the Prospectus that
is referred to below.

 

The Company has
prepared and filed, in accordance with the provisions of the Securities Act of
1933, as amended, and the rules and regulations thereunder (collectively, the
“Act”), with the Securities and Exchange Commission (the “Commission”) a
registration statement under the Act on Form S-3 (File No. 333-76432)
dated April 25, 2002 (the “first registration statement”) and a registration
statement under the Act on Form S-3 (File No. 333-102244) dated December
27, 2002 (the “second registration statement,” and together with the first
registration, collectively, the “registration statement”).  The registration statement has been declared
by the Commission to be effective under the Act.  The Company will next file with the Commission pursuant to
Rule 424(b) under the Act a final prospectus supplement to the Basic
Prospectus (as defined below), describing the Shares and the offering thereof,
in such form as has been provided to or discussed with, and approved, by the
Placement Agent.

 

The term “Registration Statement” as used in this
Agreement means the registration statement, at the time it became effective and
as supplemented or amended prior to the execution of this Agreement, including
(i) all financial schedules and exhibits thereto and (ii) all
documents incorporated by reference or deemed to be incorporated by reference
therein.  The term “Basic Prospectus” as
used in this Agreement means the basic prospectus dated as of April 26, 2002
that is part of the first registration statement and the basic prospectus dated
as of December 27, 2002 that is part of the second registration for use in
connection with the offer and/or sale of the Shares pursuant to this Agreement.  The term “Prospectus Supplement” as used in
this Agreement means any final prospectus supplement specifically relating to
the Shares, in the form filed with, or transmitted for filing to, the
Commission pursuant to Rule 424 under the Act.  The term “Prospectus” as used in this Agreement means the Basic
Prospectus together with the Prospectus Supplement except that if such Basic Prospectus
is amended or supplemented on or prior to the date on which the Prospectus
Supplement was first filed pursuant to Rule 424, the term “Prospectus”
shall refer to the Basic Prospectus as so amended or supplemented and as
supplemented by the Prospectus Supplement. 
Any reference herein to the registration statement, the Registration
Statement, the Basic Prospectus, any Prospectus Supplement or the Prospectus
shall be deemed to refer to and include (i) the documents incorporated by
reference therein pursuant to Form S-3 (the “Incorporated Documents”) and (ii)
the copy of the Registration Statement, the Basic Prospectus, the Prospectus
Supplement, the Prospectus or the Incorporated Documents filed with the
Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval
system (“EDGAR”).  Any reference herein
to the terms “amend,” “amendment” or “supplement” with respect to the Registration
Statement, the Prospectus Supplement or the Prospectus shall be deemed to refer
to and include the filing of any document under the Securities Exchange Act of
1934, as amended, and the rules and regulations

 

 

thereunder (collectively, the “Exchange Act”) after
the effective date of the Registration Statement, or the date of the
Prospectus, as the case may be, deemed to be incorporated therein by reference.

 

The undersigned,
                              
(the “Investor”), hereby confirms its agreement with you as follows:

 

1.             This Purchase Agreement (the “Agreement”) is made as of
                ,
2003 between the Company and the Investor.

 

2.             The Company and the Investor agree that the Investor
will purchase from the Company and the Company will issue and sell to the
Investor
            
Shares, for a purchase price of
$              
per share, or an aggregate purchase price of
$                         .  The Investor acknowledges that the offering
of the Shares is not a firm commitment underwriting.

 

3.             The completion of the purchase and sale of the Shares
(the “Closing”) shall occur on
                       ,
2003 (the “time of purchase”).  At the
Closing, the Company shall deliver to the Investor, using customary book-entry
procedures, the number of Shares as set forth above in Section 2, and the
Investor shall deliver, or cause to be delivered, to the Company Federal Funds
wire transfer in the full amount of the purchase price for the Shares being
purchased.

 

4.             This Agreement shall be governed by, and construed in
accordance with, the internal laws of the State of New York, without giving
effect to the principles of conflicts of law.

 

5.             This Agreement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which,
when taken together, shall constitute but one instrument, and shall become
effective when one or more counterparts have been signed by each party hereto
and delivered to the other parties.

 

6.             The Company represents and warrants to Investor that:
the Registration Statement has been declared effective under the Act; no stop
order of the Commission preventing or suspending the use of the Basic
Prospectus, the Prospectus Supplement or the Prospectus or the effectiveness of
the Registration Statement has been issued and no proceedings for such purpose
have been instituted or, to the Company’s knowledge, are threatened by the
Commission; the Company is eligible to use Form S-3; such registration
statement at the date of this Agreement meets, and the offering of the Shares
complies with, the requirements of Rule 415 under the Act.  The Registration Statement complied when it
became effective, complies and will comply, at the time of purchase, and the
Basic Prospectus, the Prospectus Supplement and the Prospectus conformed as of
its date, conform and will conform at the time of purchase in all material
respects with the requirements of the Act (including said Rule 415); any
statutes, regulations, contracts or other documents that are required to be
described in the Registration Statement or the Prospectus or to be filed as
exhibits to the Registration Statement have been and will be so described or
filed; the conditions to the use of Form S-3 have been satisfied; and the
Registration Statement did not at the time of effectiveness, does not and will
not at the time of purchase contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading, and the Basic Prospectus, the
Prospectus Supplement and the Prospectus did not as of its date, does not and
will not at the time of purchase contain an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading; the documents incorporated by reference in the Basic
Prospectus, the Prospectus Supplement, the Registration Statement and the Prospectus,
at the time they became effective or were filed with the Commission, complied
in all material respects with the requirements of the Exchange Act and did not
contain an untrue statement of a material fact or omit to state a material fact
required to be

 

 

stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading; and the Company has not distributed and will not distribute any
offering material in connection with the offering or sale of the Shares other
than the Registration Statement, the then most recent Prospectus Supplement and
the Prospectus.

 

Please confirm that the
foregoing correctly sets forth the agreement between us by signing in the space
provided below for that purpose.

	
   

  	
   

  	
   

  
	
   

  	
  Name of Investor (Print)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Telephone:

  	
   

  
	
   

  	
   

  	
   

  	
  Facsimile:

  	
   

  
	
   

  	
   

  	
   

  	
  Email Address:

  	
   

  
	
   

  	
   

  	
   

  	
  Nominee (name in which
  Investor Shares are

  
	
   

  	
   

  	
   

  	
  to be registered, if
  different than name of

  
	
   

  	
   

  	
   

  	
  Investor):

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address of Nominee:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Taxpayer ID. Number:

  	
   

  
	
   

  	
   

  	
   

  	
  (if acquired in the name
  of a nominee, the

  
	
   

  	
   

  	
   

  	
  taxpayer ID. number of
  such nominee)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Broker:

  	
   

  
	
   

  	
   

  	
   

  	
  Broker Contact Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Broker Contact Telephone:

  	
   

  
	
   

  	
   

  	
   

  	
  Broker Contact Facsimile:

  	
   

  
	
   

  	
   

  	
   

  	
  Broker Contact E-mail
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  DTC account number:

  	
   

  
																			

 

	
  AGREED AND ACCEPTED:

  
	
  Microvision, Inc.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]