Document:

Unassociated Document

 

CONSULTING AGREEMENT

 

This Consulting Agreement (this "Agreement") is made and effective as of the 26th day of January, 2012, by and between American Strategic Minerals Corporation, a Nevada corporation (the "Company"), and GRQ Consultants, Inc. ("Consultant").

 

WHEREAS, the Company desires to have Consultant provide certain consulting services, as described in Section 1 of this Agreement, pursuant to the terms and conditions of this Agreement; and

 

WHEREAS, Consultant desires to provide the Services to the Company pursuant to the terms and conditions of this Agreement in exchange for the Consulting Fee (defined in Section 2) and expense reimbursement provided for in Section 2.

 

NOW, THEREFORE. in consideration of the foregoing promises and the mutual covenants herein contained, the parties hereto, intending to be legally bound, agree as follows:

 

1.           CONSULTING SERVICES. During the term of this Agreement, Consultant, in the capacity as an independent contractor, shall provide the services to the Company set forth on Schedule 1 (the "Services"). The Company acknowledges that Consultant will limit its role under this Agreement to that of a Consultant, and the Company acknowledges that Consultant is not, and will not become, engaged in the business of (i) effecting securities transactions for or on the account of the Company, (ii) providing investment advisory services as defined in the Investment Advisors Act of 1940, or (iii) providing any tax, legal or other services. The Company acknowledges and hereby agrees that Consultant is not engaged on a full-time basis and Consultant may pursue any other activities and engagements it desires during the term of this Agreement. Consultant shall perform the Services in accordance with all local, state and federal rules and regulations.

 

2.           COMPENSATION TO CONSULTANT.

 

(a)           In consideration for the Services, the Company shall sell to the Consultant a 5 year warrant, which entitles Consultant to purchase 1,750,000 shares of the Company’s common stock at an exercise price of $0.50 (the “Warrant”) for an aggregate purchase price of One Hundred and Seventy Five Dollars ($175.00). The Warrant shall be issued in substantially the form attached hereto as Exhibit A. The Warrant shall be issued on the date of execution of this agreement.  Consultant represents and warrants to the Company that:

 

(i)           Consultant has the requisite power and authority to enter into this Agreement.  No consent, approval or agreement of any individual or entity is required to be obtained by the Consultant in connection with the execution and performance by the Consultant of this Agreement or the execution and performance by the Consultant of any agreements, instruments or other obligations entered into in connection with this Agreement.

 

  

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(ii)           The Consultant is an “accredited investor,” as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended, and the Consultant is able to bear the economic risk of an investment in the Warrant.

 

(b)           Any commercially reasonable out-of-pocket expenses incurred by Consultant in connection with the performance of the Services (the "Consultant Expenses") shall be reimbursed by the Company within thirty (30) days of Consultant submitting to the Company an invoice that details the amount of the Consultant Expenses and includes written documentation of each expense. Consultant shall not charge a markup, surcharge, handling or administrative fee on the Consultant Expenses. The Company acknowledges that Consultant may incur certain expenses during the term of this Agreement, but not receive a bill or receipt for such expenses until after the term of this Agreement. In such case, Consultant shall provide the Company with an invoice and documentation of the expense and the Company shall reimburse Consultant for such expenses within five (5) days after receiving such invoice.

 

3.           TERM. The term of this Agreement shall be for twelve (12) months and commence as of the date of this Agreement, subject to Section 4 of this Agreement (the "Tern").

 

4.           EFFECT OF TERMINATION. This Agreement may be terminated during the Term by either party upon thirty (30) days’ written notice and under no circumstance is Consultant under any obligation to return all or any portion of the Consulting Fee to the Company.

 

5.           ACCURACY OF INFORMATION PROVIDED TO CONSULTANT. The Company represents and warrants to Consultant that the publicly available financial information concerning the Company subsequent to January 5. 2012 is, to the knowledge of the Company, true and correct in all material respects

 

6.           INDEPENDENT CONTRACTOR. Consultant shall act at all times hereunder as an independent contractor as that term is defined in the Internal Revenue Code of 1986, as amended, with respect to the Company, and not as an employee, partner, agent or co-venturer of or with the Company. Except as set forth herein, the Company shall neither have nor exercise control or direction whatsoever over the operations of Consultant, and Consultant shall neither have nor exercise any control or direction whatsoever over the employees, agents or subcontractors hired by the Company.

 

7.           NO AGENCY CREATED. No agency, employment, partnership or joint venture shall be created by this Agreement, as Consultant is an independent contractor. Consultant shall have no authority as an agent of the Company or to otherwise bind the Company to any agreement, commitment, obligation, contract, instrument, undertaking, arrangement, certificate or other matter. Each party hereto shall refrain from making any representation intended to create an apparent agency, employment, partnership or joint venture relationship between the parties.

 

8.           INDEMNIFICATION.

 

(a) Indemnity by the Company. The Company hereby agrees to indemnify and hold harmless Consultant and each person and affiliate associated with Consultant against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigation and legal counsel fees), and in addition to any liability the Company may otherwise have, arising out of, related to or based upon any violation of law, rule or regulation by the Company or the Company's agents, employees, representatives or affiliates.

 

  

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(b) Indemnity by Consultant. Consultant hereby agrees to indemnify and hold harmless the Company and each person and affiliate associated with the Company against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigation and legal counsel fees), and in addition to any liability the Company may otherwise have, arising out of, related to or based upon:

 

	
  

	
(i)

	
Any breach by Consultant of any representation, warranty or covenant contained in or made pursuant to this Agreement; or

 

	
  

	
(ii)

	
Any violation of law, rule or regulation by Consultant or Consultant's agents, employees, representatives or affiliates.

 

(c) Actions Relating to Indemnity. If any action or claim shall be brought or asserted against a party entitled to indemnification under this Agreement (the "Indemnified Party") or any person controlling such party and in respect of which indemnity may be sought from the party obligated to indemnify the Indemnified Party pursuant to this Section 8 (the "Indemnifying Party"), the Indemnified Party shall promptly notify the Indemnifying Party in writing and, the Indemnifying Party shall assume the defense thereof, including the employment of legal counsel and the payment of all expenses related to the claim against the Indemnified Party or such other controlling party. If the Indemnifying fails to assume the defense of such claims, the Indemnified Party or any such controlling party shall have the right to employ a single legal counsel, reasonably acceptable to the Indemnifying Party, in any such action and participate in the defense thereof and to be indemnified for the reasonable legal fees and expenses of the Indemnified Party's own legal counsel.

 

(d) This Section 8 shall survive any termination of this Agreement for a period of three (3) years from the date of termination of this Agreement. Notwithstanding anything herein to the contrary, no Indemnifying Party will be responsible for any indemnification obligation for the gross negligence or willful misconduct of the Indemnified Party.

 

9. NOTICES. Any notice required or permitted to be given pursuant to this Agreement shall be in writing (unless otherwise specified herein) and shall he deemed effectively given upon personal delivery or upon receipt by the addressee by courier or by telefacsimile addressed to each of the other Parties thereunto entitled at the respective address listed below, with a copy by email, or at such other addresses as a party may designate by ten (10) days prior written notice:

 

  

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If to the Company:

 

American Strategic Minerals Corporation

 

American Strategic Minerals Corporation

31161 Hwy. 90

Nucla, Colorado 81424

 

If to Consultant:

 

GRQ Consultants, Inc.

4400 Biscayne Blvd, Ste 850

Miami, Florida  33137

 

10.           ASSIGNMENT. This Agreement shall not be assigned, pledged or transferred in any way by either party hereto without the prior written consent of the other party. Any attempted assignment, pledge, transfer or other disposition of this Agreement or any rights, interests or benefits herein contrary to the foregoing provisions shall be null and void.

 

11.           CONFIDENTIAL INFORMATION. Consultant agrees that, at no time during the Term or a period of five (5) years immediately after the Term, will Consultant (a) use Confidential Information (as defined below) for any purpose other than in connection with the Services or (b) disclose Confidential Information to any person or entity other than to the Company or persons or entities to whom disclosure has been authorized by the Company. As used herein, "Confidential Information" means all information of a technical or business nature relating to the Company or its affiliates, including, without limitation, trade secrets, inventions, drawings, file data, documentation, diagrams, specifications, know-how, processes, formulae, models, test results, marketing techniques and materials, marketing and development plans, price lists, pricing policies, business plans, information relating to customer or supplier identities, characteristics and agreements, financial information and projections, flow charts, software in various stages of development, source codes, object codes, research and development procedures and employee files and information; provided, however, that "Confidential Information" shall not include any information that (i) has entered the public domain through no action or failure to act of Consultant; (ii) prior to disclosure hereunder was already lawfully in Consultant's possession without any obligation of confidentiality; (iii) subsequent to disclosure hereunder is obtained by Consultant on a non-confidential basis from a third party who has the right to disclose such information to Consultant; or (iv) is ordered to be or otherwise required to be disclosed by Consultant by a court of law or other governmental body; provided, however, that the Company is notified of such order or requirement and given a reasonable opportunity to intervene.

 

12.           RETURN OF MATERIALS AT TERMINATION. Consultant agrees that all documents, reports and other data or materials provided to Consultant shall remain the property of the Company, including, but not limited to, any work in progress. Upon termination of this Agreement for any reason, Consultant shall promptly deliver to the Company all such documents, including, without limitation, all Confidential Information, belonging to the Company, including all copies thereof.

 

  

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13.            CONFLICTING AGREEMENTS; REQUISITE APPROVAL. CONSULTANT and the Company represent and warrant to each other that the entry into this Agreement and the obligations and duties undertaken hereunder will not conflict with, constitute a breach of or otherwise violate the terms of any agreement or court order to which either party is a party, and each of the Company and Consultant represent and warrant that it has all requisite corporate authority and approval to enter into this Agreement and it is not required to obtain the consent of any person, firm, corporation or other entity in order to enter into this Agreement.

 

14.           NO WAIVER. No terms or conditions of this Agreement shall be deemed to have been waived, nor shall any party hereto be stopped from enforcing any provisions of the Agreement, except by written instrument of the party charged with such waiver or estoppel. Any written waiver shall not be deemed a continuing waiver unless specifically stated, shall operate only as to the specific term or condition waived, and shall not constitute a waiver of such term or condition for the future or as to any act other than specifically waived.

 

15.           GOVERNING LAW. This Agreement shall be governed by, construed in accordance with and enforced under the internal laws of the State of New York. The venue for any legal proceedings in connection with this Agreement shall be in the federal or state courts located in the City of New York, State of New York.

 

16.           ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties hereto in regard to the subject matter hereof and may only be changed by written documentation signed by the party against whom enforcement of the waiver, change, modification, extension or discharge is sought. This Agreement supersedes all prior written or oral agreements by and among the Company or any of its subsidiaries or affiliates and Consultant or any of its affiliates.

 

17.           SECTION HEADINGS. Headings contained herein are for convenient reference only. They are not a part of this Agreement and are not to affect in any way the substance or interpretation of this Agreement.

 

18.           SURVIVAL OF PROVISIONS. In case any one or more of the provisions or any portion of any provision set forth in this Agreement should be found to be invalid, illegal or unenforceable in any respect, such provision(s) or portion(s) thereof shall be modified or deleted in such manner as to afford the parties the fullest protection commensurate with making this Agreement, as modified, legal and enforceable under applicable laws. The validity, legality and enforceability of any such provisions shall not in any way be affected or impaired thereby and such remaining provisions in this Agreement shall be construed as severable and independent thereof.

 

19.           BINDING EFFECT. This Agreement is binding upon and inures to the benefit of the parties hereto and their respective successors and assigns, subject to the restriction on assignment contained in Section 10 of this Agreement.

 

20.           ATTORNEY'S FEES. The prevailing party in any legal proceeding arising out of or resulting from this Agreement shall be entitled to recover its costs and fees, including, but not limited to, reasonable attorneys' fees and post judgment costs, from the other party.

 

  

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21.           AUTHORIZATION. The persons executing this Agreement on behalf of the Company and Consultant hereby represent and warrant to each other that they are the duly authorized representatives of their respective entities and that each has taken all necessary corporate or partnership action to ratify and approve the execution of this Agreement in accordance with its terms.

 

22.           ADDITIONAL DOCUMENTS. Each of the parties to this Agreement agrees to provide such additional duly executed (in recordable form, where appropriate) agreements, documents and instruments as may be reasonably requested by the other party in order to carry out the purposes and intent of this Agreement.

 

23.           COUNTERPARTS & TELEFACSIMILE. This agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and all of which shall constitute one agreement. A telefacsimile of this Agreement may be relied upon as full and sufficient evidence as an original.

 

24.           COMPLIANCE WITH LAW. Consultant will comply with all laws, rules and regulations related to its activities on behalf of the Company pursuant to this Agreement. Consultant shall provide a prominent notice on all newsletters and websites/webcasts/interview materials and other communications with investors or prospective investors in which Consultant may be reasonably deemed to be giving advice or making a recommendation that Consultant has been compensated for its services and owns common stock of the Company. Consultant acknowledges that it is aware that the federal securities laws restrict trading in the Company's securities while in possession of material non-public information concerning the Company. Consultant acknowledges that with respect to any Company securities now or at any time hereafter beneficially owned by Consultant or any of its affiliates, that he will refrain from trading in the Company's securities while he or any such affiliate is in possession of material non-public information concerning the Company, its financial condition, or its business and affairs or prospects.

 

[Signatures on Following Page]

 

  

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

 

The Company:

 

American Strategic Minerals Corporation

 

 

By: /s/ George Glasier

George Glasier, President and Chief Executive Officer

 

 

CONSULTANT:

 

GRQ Consultants, Inc.

 

 

By: /s/ Barry Honig

Barry Honig, President

 

  

  

  

 

Schedule 1

 

Services

 

 

The following are the Services that Consultant shall provide to the Company:

·       Introduction to banking relationships

·       Consulting on strategic acquisitions to enhance Company value

·       Capital restructuring

 

  

  

  

 

	  	
EXHIBIT A

 

 

 

WARRANT

	  
	  	
AMERICAN STRATEGIC MINERALS CORPORATION

	
_____ Shares

	  	  	  

 

WARRANT TO PURCHASE COMMON STOCK

 

VOID AFTER 5:30 P.M., EASTERN

TIME, ON THE EXPIRATION DATE

 

THIS WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED, DONATED OR OTHERWISE TRANSFERRED WITHOUT COMPLIANCE WITH THE REGISTRATION OR QUALIFICATION PROVISIONS OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR APPLICABLE EXEMPTIONS THEREFROM.

 

FOR VALUE RECEIVED, AMERICAN STRATEGIC MINERALS CORPORATION., a Nevada corporation (the “Company”), hereby agrees to sell upon the terms and on the conditions hereinafter set forth, but no later than 5:30 p.m., Eastern Time, on the Expiration Date (as hereinafter defined) to ______ or registered assigns (the “Holder”), under the terms as hereinafter set forth, _____ (_______) fully paid and non-assessable shares of the Company’s Common Stock, par value $0.0001 per share (the “Warrant Stock”), at a purchase price of $0.50 per share (the “Warrant Price”), pursuant to this warrant (this “Warrant”).  The number of shares of Warrant Stock to be so issued and the Warrant Price are subject to adjustment in certain events as hereinafter set forth.  The term “Common Stock” shall mean, when used herein, unless the context otherwise requires, the stock and other securities and property at the time receivable upon the exercise of this Warrant.

 

1.           Exercise of Warrant.

 

a.           The Holder may exercise this Warrant according to its terms by surrendering this Warrant to the Company at the address set forth in Section 11, the Notice of Exercise attached hereto having then been duly executed by the Holder, accompanied by cash, certified check or bank draft in payment of the purchase price, in lawful money of the United States of America, for the number of shares of the Warrant Stock specified in the Notice of Exercise, or as otherwise provided in this Warrant, prior to 5:30 p.m., Eastern Time, on January __, 2022 (the “Expiration Date”).

 

  

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b.           Cashless Exercise.  If at any time after the expiration of the Registration Rights Period (as defined herein), there is no effective Registration Statement registering, or no current prospectus available for, the resale of the Warrant Stock by the Holder, or an exemption is available from registration under the Securities Act of 1933, as amended, then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of shares of Warrant Stock equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

	
  

	
(A) = the closing price on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise;

	
  

	
(B) = the Exercise Price of this Warrant, as adjusted hereunder; and

(X) = the number of shares of Warrant Stock that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

c.           This Warrant may be exercised in whole or in part so long as any exercise in part hereof would not involve the issuance of fractional shares of Warrant Stock.  If exercised in part, the Company shall deliver to the Holder a new Warrant, identical in form, in the name of the Holder, evidencing the right to purchase the number of shares of Warrant Stock as to which this Warrant has not been exercised, which new Warrant shall be signed by the Chairman, Chief Executive Officer or President and the Secretary or Assistant Secretary of the Company.  The term Warrant as used herein shall include any subsequent Warrant issued as provided herein.

 

d.           No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. All fractional shares of common stock shall be rounded up to the nearest whole share.

 

e.           In the event of any exercise of the rights represented by this Warrant, a certificate or certificates for the Warrant Stock so purchased, registered in the name of the Holder, shall be delivered to the Holder within  three (3) trading days after such rights shall have been so exercised. The person or entity in whose name any certificate for the Warrant Stock is issued upon exercise of the rights represented by this Warrant shall for all purposes be deemed to have become the holder of record of such shares immediately prior to the close of business on the date on which the Warrant was surrendered and payment of the Warrant Price and any applicable taxes was made, irrespective of the date of delivery of such certificate, except that, if the date of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the opening of business on the next succeeding date on which the stock transfer books are open. The Company shall pay any and all documentary stamp or similar issue or transfer taxes payable in respect of the issue or delivery of shares of Common Stock on exercise of this Warrant.

 

  

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f.           Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise.  In addition to any other rights available to the Holder, if the Company fails to cause its transfer agent to transmit to the Holder a certificate or the certificates representing the Warrant Stock pursuant to an exercise within three trading days from the date of such exercise, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Stock which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of shares of Warrant Stock that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of shares of Warrant Stock for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder.  For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss.  Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof

 

2.           Disposition of Warrant Stock and Warrant.

 

a.           The Holder hereby acknowledges that this Warrant and any Warrant Stock purchased pursuant hereto are, as of the date hereof, not registered: (i) under the Securities Act of 1933, as amended (the “Act”), on the ground that the issuance of this Warrant is exempt from registration under Section 4(2) of the Act as not involving any public offering or (ii) under any applicable state securities law because the issuance of this Warrant does not involve any public offering; and that the Company’s reliance on the Section 4(2) exemption of the Act, and under applicable state securities laws is predicated in part on the representations hereby made to the Company by the Holder that it is acquiring this Warrant and will acquire the Warrant Stock for investment for its own account, with no present intention of dividing its participation with others or reselling or otherwise distributing the same, subject, nevertheless, to any requirement of law that the disposition of its property shall at all times be within its control.

 

The Holder hereby agrees that it will not sell or transfer all or any part of this Warrant and/or Warrant Stock unless and until it shall first have given notice to the Company describing such sale or transfer and furnished to the Company either (i) an opinion, reasonably satisfactory to counsel for the Company, of counsel (skilled in securities matters, selected by the Holder and reasonably satisfactory to the Company) to the effect that the proposed sale or transfer may be made without registration under the Act and without registration or qualification under any state law, or (ii) an interpretative letter from the Securities and Exchange Commission to the effect that no enforcement action will be recommended if the proposed sale or transfer is made without registration under the Act.

 

  

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b.           If, at the time of issuance of the shares issuable upon exercise of this Warrant, no registration statement is in effect with respect to such shares under applicable provisions of the Act, unless cashless exercise is properly elected by the Holder, in which case the certificate representing the Warrant Stock shall not bear any restrictive legend, the Company may at its election require that the Holder provide the Company with written reconfirmation of the Holder’s investment intent and that any stock certificate delivered to the Holder of a surrendered Warrant shall bear legends reading substantially as follows:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THIS CERTIFICATE THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.”

 

In addition, so long as the foregoing legend may remain on any stock certificate delivered to the Holder, the Company may maintain appropriate “stop transfer” orders with respect to such certificates and the shares represented thereby on its books and records and with those to whom it may delegate registrar and transfer functions.

 

3.           Reservation of Shares.  The Company hereby agrees that at all times there shall be reserved for issuance upon the exercise of this Warrant such number of shares of its Common Stock as shall be required for issuance upon exercise of this Warrant.  The Company further agrees that all shares which may be issued upon the exercise of the rights represented by this Warrant will be duly authorized and will, upon issuance and against payment of the exercise price, be validly issued, fully paid and non-assessable, free from all taxes, liens, charges and preemptive rights with respect to the issuance thereof, other than taxes, if any, in respect of any transfer occurring contemporaneously with such issuance and other than transfer restrictions imposed by federal and state securities laws.

 

4.           Exchange, Transfer or Assignment of Warrant.  This Warrant is exchangeable, without expense, at the option of the Holder, upon presentation and surrender hereof to the Company or at the office of its stock transfer agent, if any, for other Warrants of different denominations, entitling the Holder or Holders thereof to purchase in the aggregate the same number of shares of Common Stock purchasable hereunder.  Upon surrender of this Warrant to the Company or at the office of its stock transfer agent, if any, with the Assignment Form annexed hereto duly executed and funds sufficient to pay any transfer tax, the Company shall, without charge, execute and deliver a new Warrant in the name of the assignee named in such instrument of assignment and this Warrant shall promptly be canceled. This Warrant may be divided or combined with other Warrants that carry the same rights upon presentation hereof at the office of the Company or at the office of its stock transfer agent, if any, together with a written notice specifying the names and denominations in which new Warrants are to be issued and signed by the Holder hereof.

 

  

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5.           Capital Adjustments.  This Warrant is subject to the following further provisions:

 

a.           [RESERVED].

 

b.           [RESERVED].

 

c.           Subdivision or Combination of Shares.  If the Company at any time while this Warrant remains outstanding and unexpired shall subdivide or combine its Common Stock, the number of shares of Warrant Stock purchasable upon exercise of this Warrant and the Warrant Price shall be proportionately adjusted.

 

d.           Stock Dividends and Distributions.  If the Company at any time while this Warrant is outstanding and unexpired shall issue or pay the holders of its Common Stock, or take a record of the holders of its Common Stock for the purpose of entitling them to receive, a dividend payable in, or other distribution of, Common Stock, then (i) the Warrant Price shall be adjusted in accordance with Section 5(f) and (ii) the number of shares of Warrant Stock purchasable upon exercise of this Warrant shall be adjusted to the number of shares of Common Stock that the Holder would have owned immediately following such action had this Warrant been exercised immediately prior thereto.

 

e.           Stock and Rights Offering to Shareholders.  If the Company shall at any time after the date of issuance of this Warrant distribute to all holders of its Common Stock any shares of capital stock of the Company (other than Common Stock) or evidences of its indebtedness or assets (excluding cash dividends or distributions paid from retained earnings or current year’s or prior year’s earnings of the Company) or rights or warrants to subscribe for or purchase any of its securities (excluding those referred to in the immediately preceding paragraph) (any of the foregoing being hereinafter in this paragraph called the “Securities”), then in each such case, the Company shall reserve shares or other units of such Securities for distribution to the Holder upon exercise of this Warrant so that, in addition to the shares of the Common Stock to which such Holder is entitled, such Holder will receive upon such exercise the amount and kind of such Securities which such Holder would have received if the Holder had, immediately prior to the record date for the distribution of the Securities, exercised this Warrant.

 

f.           Warrant Price Adjustment.  Except as otherwise provided herein, whenever the number of shares of Warrant Stock purchasable upon exercise of this Warrant is adjusted, as herein provided, the Warrant Price payable upon the exercise of this Warrant shall be adjusted to that price determined by multiplying the Warrant Price immediately prior to such adjustment by a fraction (i) the numerator of which shall be the number of shares of Warrant Stock purchasable upon exercise of this Warrant immediately prior to such adjustment, and (ii) the denominator of which shall be the number of shares of Warrant Stock purchasable upon exercise of this Warrant immediately thereafter.

 

g.           Certain Shares Excluded.  The number of shares of Common Stock outstanding at any given time for purposes of the adjustments set forth in this Section 5 shall exclude any shares then directly or indirectly held in the treasury of the Company.

 

  

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h.           Deferral and Cumulation of De Minimis Adjustments.  The Company shall not be required to make any adjustment pursuant to this Section 5 if the amount of such adjustment would be less than one percent (1%) of the Warrant Price in effect immediately before the event that would otherwise have given rise to such adjustment.  In such case, however, any adjustment that would otherwise have been required to be made shall be made at the time of and together with the next subsequent adjustment which, together with any adjustment or adjustments so carried forward, shall amount to not less than one percent (1%) of the Warrant Price in effect immediately before the event giving rise to such next subsequent adjustment.

 

i.           Duration of Adjustment.  Following each computation or readjustment as provided in this Section 5, the new adjusted Warrant Price and number of shares of Warrant Stock purchasable upon exercise of this Warrant shall remain in effect until a further computation or readjustment thereof is required.

 

6.           Piggy-Back Registration Rights. For a period of twelve months from the original date of issuance of this Warrant (such period of time, the “Registration Rights Period”), if the Company shall determine to file with the Securities and Exchange Commission a Registration Statement relating to an offering for its own account or the account of others under the Securities Act of 1933, as amended (the “Securities Act”), of any of its equity securities (other than (i) the amendment of a Registration Statement previously filed or the filing of a Registration Statement that was previously filed and withdrawn or (ii) on Form S-4, Form S-8 or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other bona fide, employee benefit plans), the Company shall use its best efforts to include in such Registration Statement the Warrant Stock; provided, however, that it shall be within Company’s sole discretion to reduce or eliminate the number of shares of Warrant Stock that are included in a Registration Statement to the extent necessary to satisfy the Securities and Exchange Commission’s requirements pursuant to Rule 415 under the Securities Act. 

 

7.           Limitation on Exercises.  The Company shall not effect the exercise of this Warrant, and the Holder shall not have the right to exercise this Warrant, to the extent that after giving effect to such exercise, the Holder (together with such Holder’s affiliates) would beneficially own in excess of 4.99% of the shares of Common Stock outstanding immediately after giving effect to such exercise.  For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by such Holder and its affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock which would be issuable upon (A) exercise of the remaining, unexercised portion of this Warrant beneficially owned by such Holder and its affiliates and (B) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company beneficially owned by such Person and its affiliates (including, without limitation, any convertible notes or convertible preferred stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein.  Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended.  To the extent that the limitation contained in this Section 7 applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any affiliate) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any affiliate) and of which portion of this Warrant is exercisable, in each case subject to such aggregate percentage limitation, and the Company shall have no obligation to verify or confirm the accuracy of the determination.  For purposes of this Warrant, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (1) the Company's most recent Form 10-K, Form 10-Q,  Current Report on Form 8-K or other public filing with the Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any other notice by the Company setting forth the number of shares of Common Stock outstanding.  For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1) business day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder and its affiliates since the date as of which such number of outstanding shares of Common Stock was reported.  The restriction described in this Section 7 may be waived, in whole or in part, upon sixty-one (61) days prior notice from the Holder to the Company to increase such percentage up to 9.99%, but not in excess of 9.99%.  The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 7 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation..

 

  

- 6 -

  

 

8.           Notice to Holders.

 

a.           Notice of Record Date.  In case:

 

(i)           the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time receivable upon the exercise of this Warrant) for the purpose of entitling them to receive any dividend (other than a cash dividend payable out of earned surplus of the Company) or other distribution, or any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right;

 

(ii)           of any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation with or merger of the Company into another corporation, or any conveyance of all or substantially all of the assets of the Company to another corporation; or

 

(iii)           of any voluntary dissolution, liquidation or winding-up of the Company;

 

then, and in each such case, the Company will mail or cause to be mailed to the Holder hereof at the time outstanding a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the date on which such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation or winding-up is to take place, and the time, if any, is to be fixed, as of which the holders of record of Common Stock (or such stock or securities at the time receivable upon the exercise of this Warrant) shall be entitled to exchange their shares of Common Stock (or such other stock or securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, conveyance, dissolution or winding-up.  Such notice shall be mailed at least thirty (30) days prior to the record date therein specified, or if no record date shall have been specified therein, at least thirty (30) days prior to such specified date, provided, however, failure to provide any such notice shall not affect the validity of such transaction.

 

  

- 7 -

  

 

b.           Certificate of Adjustment. Whenever any adjustment shall be made pursuant to Section 5 hereof, the Company shall promptly make a certificate signed by its Chairman, Chief Executive Officer, President, Vice President, Chief Financial Officer or Treasurer, setting forth in reasonable detail the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated and the Warrant Price and number of shares of Warrant Stock purchasable upon exercise of this Warrant after giving effect to such adjustment, and shall promptly cause copies of such certificates to be mailed (by first class mail, postage prepaid) to the Holder of this Warrant.

 

9.           Loss, Theft, Destruction or Mutilation.  Upon receipt by the Company of evidence satisfactory to it, in the exercise of its reasonable discretion, of the ownership and the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, of indemnity reasonably satisfactory to the Company and, in the case of mutilation, upon surrender and cancellation thereof, the Company will execute and deliver in lieu thereof, without expense to the Holder, a new Warrant of like tenor dated the date hereof.

 

10.           Warrant Holder Not a Stockholder.  The Holder of this Warrant, as such, shall not be entitled by reason of this Warrant to any rights whatsoever as a stockholder of the Company.

 

11.           Notices.  Any notice required or contemplated by this Warrant shall be deemed to have been duly given if transmitted by registered or certified mail, return receipt requested, or nationally recognized overnight delivery service, to the Company at its principal executive offices located at 31161 Hwy. 90, Nucla, CO 81424, Attn: Chief Executive Officer, or to the Holder at the name and address set forth in the Warrant Register maintained by the Company.

 

12.           Choice of Law.  THIS WARRANT IS ISSUED UNDER AND SHALL FOR ALL PURPOSES BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

 

13.           Jurisdiction and Venue.  The Company and Holder hereby agree that any dispute which may arise between them arising out of or in connection with this Warrant shall be adjudicated before a court located in New York County, New York and they hereby submit to the exclusive jurisdiction of the federal and state courts of the State of York located in New York County with respect to any action or legal proceeding commenced by any party, and irrevocably waive any objection they now or hereafter may have respecting the venue of any such action or proceeding brought in such a court or respecting the fact that such court is an inconvenient forum, relating to or arising out of this Warrant or any acts or omissions relating to the sale of the securities hereunder, and consent to the service of process in any such action or legal proceeding by means of registered or certified mail, return receipt requested, in care of the address set forth herein or such other address as either party shall furnish in writing to the other.

 

  

- 8 -

  

 

IN WITNESS WHEREOF, the Company has duly caused this Warrant to be signed on its behalf, in its corporate name and by its duly authorized officers, as of this __ day of _____________________, 2012.

 

 

AMERICAN STRATEGIC MINERALS CORPORATION

 

 

By:_______________________________

       Name:

       Title:

 

  

- 9 -

  

 

NOTICE OF EXERCISE

 

	
TO:

	
American Strategic Minerals Corporation

	
  

	
31161 Hwy. 90

	
  

	
Nucla, CO 81424

	
  

	
Attn: Chief Executive Officer

	
  

	
Tel: (___) ___-____

	
  

	
Fax: (___) ___-____

 

(1)           The undersigned hereby elects to purchase ______________ shares of Warrant Stock of the Company pursuant to the terms of the attached Warrant to Purchase Common Stock, and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2)           Payment shall take the form of (check applicable box):

 

o            in lawful money of the United States; or

 

o            if permitted, the cancellation of __________  shares of Warrant Stock in order to exercise this Warrant with respect to ____________ shares of Warrant Stock (using the closing price of the previous Trading Day  of $______ for this calculation), in accordance with the formula and procedure set forth in subsection 1(b).

 

o            if permitted, the cancellation of such number of shares of Warrant Stock as is necessary, in accordance with the formula and procedure set forth in subsection 1(b), to exercise this Warrant with respect to the maximum number of shares of Warrant Stock purchasable pursuant to a cashless exercise.

 

(3)           Please issue a certificate or certificates representing said shares of Warrant Stock in the name of the undersigned or in such other name as is specified below:

 

 The shares of Warrant Stock shall be delivered to the following DWAC Account Number, if permitted, or by physical delivery of a certificate to:

 

 

  

  

(4)           Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended or the undersigned satisfies the requirements under Regulation S promulgated under the Securities Act of 1933, as amended.

 

  

- 10 -

  

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity: 

 

Signature of Authorized Signatory of Investing Entity: 

 

Name and Title of Authorized Signatory: 

 

Date: 

 

  

- 11 -

  

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

     FOR VALUE RECEIVED, all of or   shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

                                                                       whose address is

  

  

  Dated:                          ,         

 

Holder’s Name: 

 

Holder’s Signature: 

 

Name and Title of Signatory: 

 

Holder’s Address: 

 

Signature Guaranteed: 

 

NOTE:  The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

 

 

- 12 -RETIREMENT AND
TRANSITION AGREEMENT 

 

This Retirement
and Transition Agreement (the “Agreement”) is entered into between Jerry D.
Neal, a resident of North Carolina (“Employee”), and RF Micro Devices, Inc., a
North Carolina corporation (“Employer”), effective as of the 31st day of May, 2012
(the “Retirement Date”).

 

WHEREAS,
Employee currently is in the position of Executive Vice President of Marketing;
and

 

WHEREAS,
Employee has indicated his desire to retire from his employment; and

 

WHEREAS, the
parties wish for Employee’s retirement from his employment to be achieved in an
amicable fashion and with a clear understanding of their rights and
liabilities;

 

THEREFORE, the
parties agree as follows:

 

1.         Retirement
Date.  Employee will retire from employment with Employer and all of its
subsidiaries and affiliates effective as of the Retirement Date.  As of the
Retirement Date, Employee will be deemed to have tendered his resignation as an
officer and from all other positions with Employer and its subsidiaries and
affiliates.  Between the date of execution of this Agreement by Employee and through
and including the Retirement Date, Employee will continue to be paid his
current salary in accordance with Employer’s normal payroll practices (except
the last payment will be via check rather than direct deposit) and through and
including the Retirement Date Employee will continue to be eligible to
participate in all of Employer’s benefit plans and programs and receive
compensation and benefits thereunder on the same basis as in effect immediately
prior to the execution of this Agreement by Employee.

 

2.         Compensation.

 

            (a)        Post-Retirement
Compensation.  Employer will pay to Employee a lump sum payment of Six
Hundred Three Thousand Three Hundred Thirty-Three and 50/100 Dollars ($603,333.50).
 Such payment will be subject to normal tax withholdings.  Such payment will be
made within ten (10) business days of the Retirement Date.

 

            (b)        Payments
for COBRA Continuation Coverage; Special Bonus.  Upon retirement, Employee
will be offered the option of continuing his current individual and family
dependent medical, dental and prescription drug insurance coverage (the
“Continuation Coverage”) under Employer’s medical and dental plans pursuant to
the requirements of the Consolidated Omnibus Budget Reconciliation Act
(“COBRA”).  If Employee is enrolled under the Blue Cross & Blue Shield PPO,
the COBRA notification will be mailed directly to Employee from ADP.  If
Employee wants Continuation Coverage, Employee must complete, sign and mail the
application form to ADP within 60 days of the Retirement Date; alternatively,
Employee may enroll for Continuation Coverage online by going to www.benedirect.adp.com
and registering as a new 

 

 

 

 

 

participant.  If Employee elects Continuation Coverage
under COBRA, Employer will pay Employee’s COBRA premium for 18 months from the
Retirement Date or until Employee is no longer eligible for Continuation
Coverage under COBRA, whichever period is shorter.  Thereafter, for a period of
two years, less the period during which Continuation Coverage under COBRA is
provided by Employer, Employee will acquire for himself a Medicare supplemental
insurance policy and for his wife a medical and dental insurance policy, both
providing medical, dental and prescription drug coverage reasonably equivalent
to the coverage provided by Employer under its medical and dental plans as of
the Retirement Date, and Employer will reimburse Employee for the cost of both
such policies.  With respect to each calendar year during which the
Continuation Coverage is provided to Employee and his dependents pursuant to
this subsection (b) and each calendar year during which the private policies
are reimbursed by Employer, to the extent that the Continuation Coverage
benefits and the reimbursements constitute taxable income to Employee, Employer
shall report as income to Employee for federal and state income tax purposes
the value of the Continuation Coverage and the reimbursements.  In addition,
Employer shall pay to Employee an annual special bonus equal to the amount
necessary to pay any federal income tax, state income tax, or other tax imposed
upon Employee as a result of the receipt of the Continuation Coverage, the
reimbursements and the special bonus provided for in this subsection (b).  For
purposes of determining the amount of the special bonus, Employee shall be
deemed to pay federal income taxes at the highest marginal rate of federal
income taxation for individuals in the calendar year in which the special bonus
is paid.  In addition, Employee shall be deemed to pay state income taxes at a
rate determined in accordance with the following formula:

 

(1 – (highest
marginal rate of federal income taxation for individuals)) X (highest marginal
rate of income tax in the state in which Employee is domiciled for individuals
in the calendar year in which the special bonus is paid).

 

The amount of
the special bonus shall be determined by Employer in good faith.  The special
bonus shall be paid to Employee in a single lump sum payment on or prior to
December 31 of each calendar year during which the Continuation Coverage or the
reimbursements are provided pursuant to this subsection (b).

 

            (c)        401(k)
Plan.  Employee’s account balance in Employer’s 401(k) Plan may remain in
such Plan or be transferred to another qualified plan or IRA at Employee’s
election.  To transfer Employer’s account balance to another qualified plan or
IRA or to obtain a distribution from the account, Employee should visit
Fidelity’s website at www.401k.com or call the Fidelity Retirement Benefits
Line at 1-800-890-4015.  Outstanding loans against Employer’s 401(k) Plan
balance must be repaid within 30 days of the Retirement Date.

 

(d)       Group
Life Insurance and Accidental Death & Dismemberment.  Life Insurance
and Accidental Death & Dismemberment Insurance provided by Employer ceases
effective midnight on the Retirement Date.  These benefits cannot be converted
to an individual plan.

 

 

            (e)        Portable
Supplemental Life Insurance.  Supplemental Life Insurance or Accidental
Death & Dismemberment Insurance Employee may have elected 

 

-2-

 

 

 

 

to purchase
through The Hartford that is designated as “portable” may be converted to an
individual plan.  Please contact Patsy Cairrikier, Manager, Benefits,
336-678-7235, for the conversion form.  Please mail the completed “Election of
Portability Coverage” form to The Hartford within 31 days after your group
insurance coverage ends, which is midnight on the Retirement Date.

 

            (f)        Long-Term
Disability Insurance.  Long-term disability insurance coverage ceases
effective midnight on the Retirement Date.  This benefit cannot be converted to
an individual plan.  

 

            (g)        Flexible
Spending Accounts.  Medical Accounts in the Flexible Spending Plan are
available for continuation for a limited period of time.  If Employee is
enrolled in the Medical Flexible Spending Plan, the COBRA notification will be
mailed directly to Employee from Pro Benefits.  If Employee elects to accept
the coverage, Employee must complete, sign and mail the application form to Pro
Benefits within 60 days of the Retirement Date.  The premium is due within 45
days of Employee’s application for coverage and is due the first of each month
thereafter.  Employee’s payment should be mailed to Pro Benefits.

 

            (h)        Employee
Stock Purchase Plan.  Eligibility for participation in Employer’s Stock
Purchase Plan ceases effective as of the Retirement Date.  Employer will
reimburse payroll deductions credited to Employee’s account during the current purchase
period no later than the next scheduled payroll period following the Retirement
Date.

 

 

            (i)         Equity
Awards.  As of the date of execution of this Agreement, Employee is the
holder of (1) unexercised and fully vested incentive stock options and
nonqualified stock options covering an aggregate of 688,648 shares of
Employer’s common stock (the “Options”) previously awarded to Employee under
the terms of Employer’s 1997 Key Employees’ Stock Option Plan, as amended (the
“1997 Plan”), Employer’s 1999 Stock Incentive Plan, as amended (the “1999 Plan”)
and the 2003 Stock Incentive Plan of RF Micro Devices, Inc., as amended (the
"2003 Plan" and each of the 1997 Plan, the 1999 Plan and the 2003
Plan, a "Stock Plan"), (2) an aggregate of 175,077 unvested
service-based restricted stock unit awards (“RSAs”), each of which was awarded
under the 2003 Plan pursuant to a "Restricted Stock Award Agreement
(Service-Based Award for Senior Officers)", and (3) an aggregate of 160,313
unvested performance-based RSAs awarded under the 2003 Plan (a portion of which
will vest prior to the Retirement Date in accordance with their terms).  Exhibit
A attached hereto identifies (1) all the Options (two of which will expire
prior to the Retirement Date unless exercised before their stated expiration
date), (2) all the service-based RSAs held by Employee as of the Retirement
Date that have one or more unvested installments that will continue to vest
after the Retirement Date, and (3) all the performance-based RSAs held by
Employee as of the Retirement Date (assuming Employer meets five of the goals for
the fiscal year 2012 performance-based RSA), none of which would (but for this
Section 2(i)) vest after the Retirement Date.  Upon retirement, any Options
granted to Employee under the 2003 Plan pursuant to any "Stock Option
Agreement (Senior Officers)" shall continue to be exercisable following
retirement in accordance with the terms of such agreement, including but not
limited to Section 2 of Schedule A thereto, and Employer agrees that the
Administrator (as defined in the 2003 Plan) shall not exercise negative
discretion to alter such post-termination exercise and vesting terms. 
Upon retirement, any service-based RSA granted to Employee under the 2003 Plan
shall continue to vest following retirement in accordance with the terms of the
RSA agreement, including but not limited to Section 2 of Schedule A thereto, and
Employer

 

-3-

 

 

agrees that the Administrator shall not exercise negative
discretion to alter such post-termination vesting terms.  Any other Options
and/or RSAs granted to Employee under any Stock Plan (including, without
limitation, any performance-based RSAs granted under the 2003 Plan) shall
continue in accordance with the terms of the respective Stock Plan and award
agreement, except that Employer agrees to accelerate vesting of any such outstanding
performance-based RSAs (but not to extend the option period, with respect to Options),
so that such performance-based RSAs shall be vested in full on or before the
Retirement Date. Employer and Employee hereby agree that any stock option
agreement and/or RSA agreement entered into under any Stock Plan shall hereby
be amended if and solely to the extent deemed necessary to comply with the
provisions of this Section 2(i).

            

3.         Assistance
in Litigation.  Employee shall, upon reasonable notice, furnish such
information and assistance to Employer as may reasonably be required by
Employer in connection with any investigation, inquiry, litigation or other
proceeding in which it is or may become involved, and which arises out of facts
and circumstances known to Employee (and without regard to whether Employee is
a party thereto).  Employer shall promptly reimburse Employee for his
reasonable out-of-pocket expenses incurred in connection with the fulfillment
of his obligations under this Section 3.

 

4.         Benefits
Upon Retirement.  Upon the Retirement Date, and except as provided in
Sections 2(b), 2(c), 2(e), 2(g) and 2(i) above, Employee shall not be entitled
to continue to participate in any other Employer-sponsored welfare or
retirement benefit plan, program, policy or arrangement or receive any benefit
thereunder except on the terms and conditions contained in the plan documents
governing such benefits.  Employee acknowledges and agrees that as of the
Retirement Date, no amount is owed to him under Employer’s Paid Time Off Policy
as in effect on the Retirement Date or under Employer’s predecessor vacation
policy.

 

5.         Death After Retirement Date. 
Should Employee die after the Retirement Date (a) Employer will pay to
Employee’s estate the payment provided for in Section 2(a) above to the
extent not previously paid, (b) Employer will continue to provide to Employer’s
surviving spouse the Continuation Coverage, reimbursements and special bonus
set forth in Section 2(b) for the remaining period specified therein and (c) notwithstanding
Section 2(i), all rights with respect to any outstanding stock options or RSAs
at the time of Employee’s death shall be governed by the terms of the
applicable Stock Plans and stock option agreements and RSA agreements.  Any
other benefits to which Employee’s estate may be entitled pursuant to any
Employer-sponsored welfare and retirement benefit plan, program, policy or
arrangement in which Employee is a participant will be determined pursuant to
the terms of the applicable plan documents.

 

 

6.         Return
of Company Property.  Promptly following the Retirement Date, Employee
will return to Employer all Employer property, including, but not limited to,
computers, credit cards, personal digital assistant and Employer Confidential
Information

 

 

-4-

 

 

 

 

(both written and electronic copies) as required under Section 7(a),
unless otherwise mutually agreed by the parties.  Employee may retain his cell
phone and his cell phone number, provided that he assumes service costs related
to the phone as of June 1, 2012.  Employee will be permitted to remove all of
his personal belongings from his office.

 

7.         Restrictive
Covenants.  Employee acknowledges that Employer is engaged in the highly
competitive business and that Employer has made substantial investments of time
and capital in the development of its business and the goodwill associated with
its business and will continue to make such substantial investments.  In order
to protect Employer against possible injury or damage, Employee agrees as
follows:

 

(a)        Nondisclosure. 
Employee acknowledges that as a result of his employment by Employer, he has
used, acquired and added to Confidential Information relating to Employer which
is proprietary to Employer.  Employee agrees that he shall not at any time,
directly or indirectly, divulge or disclose to any person, for any purpose, any
Confidential Information unless legally required to do so.  “Confidential
Information,” as that term is used in this Agreement, shall mean all
information concerning Employer, including, but not limited to, business plans
and models, specifications, technical data, designs, formulas, computer
software programs, manuals, methods of operation, accounting and financial
information, customer lists, pricing structure and other product information, which
has ever been or will be revealed to or discovered by Employee, unless such
information was generally available to the public prior to disclosure by
Employee or subsequently became publicly available through no act of Employee
that was not authorized by Employer.  Such information shall be considered
“Confidential Information” whether it was disclosed to Employee by plans,
drawings, reports or other written materials, by conversation with employees or
agents of Employer, by observation or inspection of physical objects or by any
other method.  Promptly following the Retirement Date, Employee shall, on a
best efforts basis immediately deliver, or cause to be delivered, to Employer
any and all documents, statements or other information (both written and electronic
copies) in his possession or control obtained from Employer containing
Confidential Information (including, but not limited to, photocopies as taken
by Employee or any other person in or outside Employer, and Employee’s
handwritten or typed notes containing such Confidential Information).  The
return of documents provided for herein shall in no way obviate the obligation
of Employee to maintain the confidentiality of the Confidential Information as
provided for herein.

 

 

(b)        Prohibition
of Certain Solicitation and Competition.  Employer and Employee
acknowledge and agree that in consideration of the compensation paid and the
benefits to be provided to Employee under this Agreement and Employee's
covenants and obligations under this Agreement, the Non-Competition and
Confidentiality Agreement between Employee and Employer dated February 28, 1992,
is hereby terminated and of no further force or effect as of the Retirement
Date.  In recognition that Employee's previous services rendered to
Employer are of a special and unusual character that have a unique value to
Employer, loss of which may not adequately be compensated by damages

 

-5-

 

 

 

 

in any action at law, and as a material
inducement to Employer to pay the compensation and provide the benefits to
Employee set forth in this Agreement, Employee covenants and agrees that from
the date hereof until the second anniversary of the Retirement Date (the
"Restricted Period"), Employee will not, directly or indirectly, on
behalf of any person, firm, partnership, corporation, association or entity:

 

(i)         Call
upon any of the customers of Employer who are customers at the Retirement Date
for the purpose of soliciting or providing customers to any Competitive
Business (as hereinafter defined); or

 

(ii)        Call
upon any of the employees, consultants or representatives of Employer who are in
such positions as of the Retirement Date or at any time during the Restricted
Period for the purpose of soliciting or inducing or encouraging such employees,
consultants or representatives to discontinue their relationship with Employer
to establish a relationship with Employee or with any Competitive Business; or

 

(iii)       Either
individually, or as a director, manager or partner, or as an officer-level or
executive-level employee, or as a consultant to other officer-level or
executive-level employees, directly or indirectly, in one or a series of
transactions, engage in or be engaged in, within the Restricted Area (as
hereinafter defined), a Competitive Business; provided, that Employee may own
as a passive investment not more than five percent (5%) of the issued and
outstanding stock of a publicly traded entity that is engaged in a Competitive
Business.

 

For
purposes of this Agreement, "Competitive Business" means the business
of designing, developing, manufacturing, assembling or marketing radio
frequency integrated circuit devices, and “Restricted Area” means the United
States of America.

 

(c)        Nondisparagement. 
Employee agrees that he will not make disparaging comments regarding Employer
or any of its officers or directors to any third party.  Employer agrees that
neither it nor any of its officers or directors will make disparaging comments
regarding Employee to any third party.  

 

 

(d)       Breach.  Employee agrees
that if he breaches the restrictive covenants or any other material provision of
this Agreement, Employee will be liable to Employer for and will immediately
repay to Employer as liquidated damages an amount equal to $603,333.50
multiplied by a fraction, the numerator of which is twenty-one (21) minus the
number of full calendar months that have elapsed since the Retirement Date as of
the date on which Employee first engages in conduct constituting the breach (as
determined in good faith by Employer), and the denominator of which is
twenty-one (21).  Employee agrees that such liquidated damages are
reasonable compensation to Employer for such breach and are in addition to any
other remedies (including injunctive relief and recovery of actual damages in
excess of such liquidated sum as may be determined by

 

-6-

 

 

 

 

 arbitration
under Section 11 of this Agreement) available to Employer as a result of such
breach.  From and after the twenty-first month following the Retirement
Date, if Employee breaches the restrictive covenants or any other material
provision of this Agreement, in addition to any other remedies (including
injunctive relief), Employer shall be entitled to such damages as may be
determined by arbitration under Section 11 of this Agreement.

 

(e)        Reasonableness
of Restrictions.  Employee and Employer have each carefully read the
provisions of this Section 7 and, having done so, agree that the restrictions
set forth in this Section 7 (including, but not limited to, the Restricted
Period restriction and the Restricted Area restriction set forth in this
Section 7) are fair and necessary to prevent Employee from unfairly taking
advantage of contacts established, nurtured, serviced, enhanced or promoted and
knowledge gained during Employee’s employment with Employer, and are necessary
for the reasonable and proper protection of Employer’s interests.  Employee
acknowledges that the covenants contained in this Section 7 will not cause an
undue burden on Employee.  Notwithstanding the foregoing, in the event any part
of the covenants set forth in this Section 7 shall be held to be invalid
or unenforceable, the remaining parts thereof shall nevertheless continue to be
valid and enforceable as though the invalid or unenforceable parts had not been
included therein.  In the event that any provision of this Section 7 shall be
declared by a court of competent jurisdiction to be overbroad as written, Employee
specifically agrees that the court should modify such provision in order to
make it enforceable, and that a court should view each such provision as severable
and enforce those severable provisions deemed reasonable by such court.  In the
event the enforceability of any of the terms of this Agreement shall be
challenged in court or by arbitration and Employee is not enjoined from
breaching any of the protective covenants, then if a court of competent
jurisdiction finds that the challenged protective covenant is enforceable, the
time periods shall be deemed tolled upon the filing of the lawsuit or indemnity
claim challenging the enforceability of this Agreement until the dispute is
finally resolved and all periods of appeal have expired.  

 

8.         Release. 
Employee, for himself, his successors, administrators, heirs and assigns,
hereby fully releases, waives and forever discharges the Employer, any
affiliated company or subsidiary, their predecessors, successors, affiliates,
assigns, directors, officers, agents, attorneys, and employees, whether past,
present, or future (the “Released Parties”) from any and all actions, suits,
debts, demands, damages, claims, judgments, or liabilities of the Released
Parties to Employee arising out of Employee’s employment with or separation
from any of the Released Parties, such as (by way of example only) any claim
for bonus, severance, or other benefits apart from the benefits stated herein;
breach of contract; wrongful discharge; impairment of economic opportunity; any
claim under common-law or at equity; any tort; claims for reimbursements;
claims for commissions; or claims for employment discrimination under any
state, federal, local law, statute, or regulation which include claims under
the Age Discrimination in Employment Act, 29 U.S.C. 621 et. seq, the
Employee Retirement Income Security Act of 1974, Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act,
the Family and Medical Leave Act, and all 

 

-7-

 

 

 

 

 

corresponding state laws that might
apply, including but not limited to the North Carolina Wage and Hour Act, and
any and all federal and state executive orders and other statutes and
regulations, and any claim for attorneys’ fees, costs, disbursements or the
like.  Employee acknowledges and agrees that this release is an
essential and material term of this Agreement and that, without such release
and covenant not to sue, no agreement would have been reached by the parties. 
Employee understands and acknowledges the significance of this release and this
Agreement.

 

9.         Consideration
and Revocation Period.  Employee acknowledges that he has hereby been
advised in writing to consult with an attorney of his choice prior to signing
this Agreement, and that he had at least 21 days to consider this Agreement
before signing it.  Employee acknowledges that if this Agreement is signed
before 21 days have elapsed from the date of delivery, by signing this
Agreement he has expressly waived the 21-day consideration period.  Employee
acknowledges that he may revoke this Agreement within seven (7) days following
its execution, and the Agreement shall not become effective until the
revocation period has expired.

 

10.       Opportunity
to Seek Counsel.  Employee acknowledges by signing this Agreement that he
has read and understands this document, that he has conferred with or had the
opportunity to confer with an attorney of his choice regarding the terms and
meaning of this Agreement, that he has had sufficient time to consider the
terms provided for in this Agreement, that no representations or inducements
have been made to him as set forth herein, and that he has signed the same
KNOWINGLY AND VOLUNTARILY.

 

11.       Arbitration. 
Except as provided below, any dispute or controversy arising between the
parties to this Agreement involving the interpretation or application of any
provision of this Agreement, or arising out of this Agreement, shall be
submitted to arbitration at Greensboro, North Carolina, pursuant to the
Commercial Rules (the “Rules”) of the American Arbitration Association (“AAA”)
by an arbitrator mutually agreed upon by the parties.  The arbitration shall be
commenced by either party giving the other party a notice of arbitration in
accordance with the Rules of the AAA.  The arbitration shall be administered by
the arbitrator unless the parties mutually agree to the administration by a
third party organization or association.  Such arbitrator shall be a retired
North Carolina Superior Court or federal District Court judge without any
economic or financial interest of any kind in the outcome of the arbitration.  In
the event Employer and Employee are unable to agree on an arbitrator within fifteen
days of the service of the notice of arbitration, then the party initiating the
arbitration shall circulate a list of three acceptable arbitrators who meet the
criteria set forth above and are able to commence and complete the arbitration
within 180 days from appointment.  The responding party shall select an
arbitrator from the list.  The arbitrator may, in his or her discretion, award
to the prevailing party its costs of the proceeding, including attorneys’ fees
and expenses.  The decision of the arbitrator shall be final and binding on the
parties, and judgment upon the decision may be entered in the state courts or
federal courts having jurisdiction over Guilford County, North Carolina. 
Notwithstanding the foregoing, either party shall have the right to institute
an action against the other party in the federal or state courts of Guilford
County, North Carolina seeking injunctive relief to enjoin any continuing or
threatened breach by the other party of any term of this Agreement.

 

-8-

 

 

 

 

12.       Governing
Law.  The provisions of this Agreement shall be construed in accordance
with the internal laws of the state of North Carolina.  In the event that any
paragraph, subparagraph or provision of this Agreement shall be determined to
be partially contrary to governing law or otherwise partially unenforceable,
the paragraph, subparagraph, or provision and this Agreement shall be enforced
to the maximum extent permitted by law, and if any paragraph, subparagraph, or
provision of Agreement shall be determined to be totally contrary to governing
law or otherwise totally unenforceable, the paragraph, subparagraph, or
provision shall be severed and disregarded and the remainder of this Agreement
shall be enforced to the maximum extent permitted by law.

 

13.       No
Admissions.  Employee agrees that neither this Agreement nor performance
hereunder constitutes an admission by any of the Released Parties of any
violation of any federal, state, or local law, regulation, common-law, breach
of any contract, or any other wrongdoing of any type.

 

14.       Entire
Agreement.  This Agreement expresses the entire agreement between the
parties with reference to the date and terms of the retirement of Employee and
supersedes and replaces any prior understanding or arrangement, other than any
benefit plans, governing such terms, whether written or oral, between Employee
and Employer.

 

15.       Modification
of Agreement.  No waiver or modification of this Agreement shall be valid
unless in writing and signed by the party to be charged therewith.

 

 

 

RF Micro Devices, Inc.                                  /s/
Jerry D. Neal           

                                                                        Jerry
D. Neal

 

By:
     /s/ Robert A. Bruggeworth                   
April 5,
2012

            Robert A. Bruggeworth                       Date

            President and Chief Executive 

Officer

            

 

            April 5, 2012

           

Date

 

 

-9-

 

 

 

 

 

EXHIBIT A

 

Jerry D. Neal Options
and Restricted Stock Awards

 

OPTIONS

 

	
   

  Grant Type

  	
   

  Plan

  	
   

  Grant Date

  	
   

  Quantity Granted

  	
   

  Quantity Outstanding

  	
   

  Expiration Date

  	
   

  Grant Price

  	
  Post Retirement
  

  Rights

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ISO

  	
  1999

  	
  5/13/2002

  	
  6,230

  	
  6,230

  	
  5/13/2012

  	
  $16.05

  	
  N

  
	
  NQ

  	
  1999

  	
  5/13/2002

  	
  44,770

  	
  44,770

  	
  5/13/2012

  	
  $16.05

  	
  N

  
	
  ISO

  	
  1997

  	
  10/10/2002

  	
  1

  	
  1

  	
  10/10/2012

  	
  $5.60

  	
  N

  
	
  ISO

  	
  2003

  	
  8/19/2003

  	
  11,793

  	
  11,793

  	
  8/19/2013

  	
  $8.48

  	
  Y

  
	
  NQ

  	
  2003

  	
  8/19/2003

  	
  83,207

  	
  83,207

  	
  8/19/2013

  	
  $8.48

  	
  Y

  
	
  ISO

  	
  2003

  	
  7/27/2004

  	
  17,242

  	
  17,242

  	
  7/27/2014

  	
  $5.80

  	
  Y

  
	
  NQ

  	
  2003

  	
  7/27/2004

  	
  87,758

  	
  87,758

  	
  7/27/2014

  	
  $5.80

  	
  Y

  
	
  NQ

  	
  2003

  	
  8/9/2005

  	
  165,000

  	
  165,000

  	
  8/9/2015

  	
  $5.97

  	
  Y

  
	
  NQ

  	
  2003

  	
  8/1/2006

  	
  165,000

  	
  165,000

  	
  8/1/2016

  	
  $6.15

  	
  Y

  
	
  NQ

  	
  2003

  	
  8/9/2007

  	
  107,647

  	
  107,647

  	
  8/9/2017

  	
  $6.31

  	
  Y

  

 

SERVICE-BASED
RESTRICTED STOCK AWARDS

 

	
   

  	
   

  	
   

  	
  To Vest on Anniversary of Grant Date

  	
   

  
	
   

  Grant Date

  	
   

  Quantity Granted

  	
  Unvested Shares at
  

  Retirement Date

  	
   

  2012

  	
   

  2013

  	
   

  2014

  	
   

  2015

  	
  Post Retirement
  

  Rights

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8/9/2007

  	
  30,903

  	
  7,727

  	
  7,727

  	
   

  	
   

  	
   

  	
  Y

  
	
  7/30/2008

  	
  110,000

  	
  27,500

  	
  27,500

  	
   

  	
   

  	
   

  	
  Y

  
	
  7/30/2009

  	
  110,000

  	
  55,000

  	
  27,500

  	
  27,500

  	
   

  	
   

  	
  Y

  
	
  8/4/2010

  	
  59,800

  	
  44,850

  	
  14,950

  	
  14,950

  	
  14,950

  	
   

  	
  Y

  
	
  8/3/2011

  	
  40,000

  	
  40,000

  	
  10,000

  	
  10,000

  	
  10,000

  	
  10,000

  	
  Y

  

 

PERFORMANCE-BASED
RESTRICTED STOCK AWARDS

 

	
   

  	
   

  	
   

  	
  To Vest on Anniversary of Grant Date

  	
   

  
	
   

  Grant Date

  	
   

  Quantity Granted

  	
  Unvested Shares at
  

  Retirement Date

  	
   

  2012

  	
   

  2013

  	
   

  2014

  	
   

  2015

  	
  Post Retirement
  

  Rights

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5/5/2009

  	
  158,750

  	
  39,688

  	
  39,688

  	
   

  	
   

  	
   

  	
  N

  
	
  5/5/2010

  	
  86,750

  	
  43,375

  	
  21,687

  	
  21,688

  	
   

  	
   

  	
  N

  
	
  5/4/2011

  	
  77,250

  	
  77,250

  	
  38,625

  	
  19,312

  	
  19,313

  	
   

  	
  N

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}]]