Document:

Exhibit 10.1

 

AKOUSTIS
TECHNOLOGIES, INC. 

2016
STOCK INCENTIVE PLAN

 

Restricted
Stock Award Agreement

 

THIS
AGREEMENT (together with Schedule A attached hereto, the “Agreement”), effective as of the date specified
as the “Grant Date” on Schedule A attached hereto, is between AKOUSTIS TECHNOLOGIES, INC., a Delaware
corporation (the “Company”), and an Employee, Director or Consultant of the Company or an Affiliate, as identified
on Schedule A attached hereto (the “Participant”).

 

R
E C I T A L S :

 

In
furtherance of the purposes of the Akoustis Technologies, Inc. 2016 Stock Incentive Plan, as it may be hereafter amended and/or
restated (the “Plan”), and in consideration of the services of the Participant and such other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Participant hereby agree as follows:

 

1.         Incorporation
of Plan. The rights and duties of the Company and the Participant under this Agreement shall in all respects be subject to
and governed by the provisions of the Plan, a copy of which has been made available to the Participant and the terms of which
are incorporated herein by reference. In the event of any conflict between the provisions in this Agreement and those of the Plan,
the provisions of the Plan shall govern, unless the Administrator determines otherwise. The terms of this Agreement shall not
be deemed to be in conflict or inconsistent with the Plan merely because they impose greater or additional restrictions, obligations
or duties, or if this Agreement provides that the Agreement terms apply notwithstanding the provisions to the contrary in the
Plan. Unless otherwise defined herein, capitalized terms in this Agreement shall have the same definitions as set forth in the
Plan. 

 

2.         Grant
of Restricted Stock Award; Restriction Period. The Company hereby grants to the Participant pursuant to the Plan, as a matter
of separate inducement and agreement in connection with his or her employment with or service to the Company, and not in lieu
of any salary or other compensation for his or her services, a Restricted Stock Award (the “Award”) for that
number of shares (the “Shares”) of common stock of the Company, $0.001 par value (the “Common Stock”)
as specified on Schedule A, attached hereto, and subject to such other terms and conditions as may be stated herein or
in the Plan or on Schedule A. The Participant expressly acknowledges that the terms of Schedule A shall be incorporated
herein by reference and shall constitute part of this Agreement. The Company and the Participant further acknowledge and agree
that the signatures of the Company and the Participant on the Grant Notice contained in Schedule A shall constitute their acceptance
of all of the terms of the Plan and this Agreement and their agreement to be bound by the terms of the Plan and this Agreement.
The “Restriction Period” for the Award shall be the period beginning on the Grant Date and ending on such date
or dates and/or satisfaction of such conditions as described in Schedule A.

 

3.         Vesting
and Earning of Award. Subject to the terms of the Plan and this Agreement, the Award shall vest and be earned upon such date
or dates, and subject to such conditions, as are described in this Agreement, including but not limited to Schedule A attached
hereto. Without limiting the effect of the foregoing, the Shares subject to the Award may vest in installments over a period of
time, if so provided in Schedule A. The Participant expressly acknowledges that the Award shall vest only upon such
terms and conditions as are provided in this Agreement (including but not limited to Schedule A) and otherwise in accordance with
the terms of the Plan. Subject to the terms of the Plan (and taking into account any Code Section 409A considerations), the
Administrator has sole authority to determine whether and to what degree the Award has vested and been earned and is payable and
to interpret the terms and conditions of the Award.

 

6/2017

 

     

     

    

 

4.         Termination
of Employment or Service. Unless otherwise provided in this Agreement or the Plan, if the employment or service of the Participant
shall be terminated for any reason (whether by the Company or the Participant and whether voluntary or involuntary) and all or
any part of the Award has not vested or been earned pursuant to the terms of the Plan and this Agreement, the Award, to the extent
not then vested or earned, shall be forfeited immediately upon such termination, and the Participant shall have no further rights
with respect thereto.

 

5.         Settlement
of Award. The Award, if earned in accordance with the terms of this Agreement, shall be payable in whole shares of Common
Stock. The total number of Shares that may be acquired upon vesting of the Award (or portion thereof) shall be rounded down to
the nearest whole share. 

 

6.         No
Right of Continued Employment or Service; Forfeiture of Award; No Right to Future Awards. Neither the Plan, this Agreement,
the grant of the Award nor any other action related to the Plan shall confer upon the Participant any right to continue in the
employ or service of the Company or an Affiliate as an Employee, Director or Consultant, as the case may be, or interfere in any
way with the right of the Company or an Affiliate to terminate the Participant’s employment or service at any time. Except
as otherwise provided in the Plan or this Agreement, all rights of the Participant with respect to the unvested portion of the
Award shall terminate upon termination of the Participant’s employment or service. The Participant acknowledges and agrees
that the Company has no obligation to advise the participant of the expiration of the Award. The grant of the Award does not create
any obligation to grant further awards. For purposes of this Agreement, references to “employment” or similar terms
shall include references to service unless the Administrator determines otherwise.

 

7.         Effect
of Change of Control. Notwithstanding the provisions of Section 3, in the event of a Change of Control, the Award shall, to
the extent not then vested or previously forfeited or cancelled, become vested if and to the extent provided below:

 

(a)       To
the extent that the successor or surviving company in the Change of Control event does not assume or substitute for the Award
(or in which the Company is the ultimate parent corporation and does not continue the Award) on substantially similar terms or
with substantially equivalent economic benefits (as determined by the Administrator prior to the Change of Control) as the Award
outstanding under the Plan immediately prior to the Change of Control event, any restrictions, including but not limited to the
Restriction Period, Performance Period and/or performance factors or criteria applicable to the Award, shall be deemed to have
been met, and the Award shall become fully vested, earned and payable to the fullest extent of the original grant (or, if the
earning of the Award is based on attaining a target level of performance, the Award shall be deemed earned at the greater of actual
performance or target performance) as of the date of the Change of Control.

 

(b)       Further,
in the event that the Award is substituted, assumed or continued as provided in Section 7(a) herein, the Award shall nonetheless
become vested in full and any restrictions, including but not limited to the Restriction Period, Performance Period and/or performance
factors or criteria applicable to the Award, shall be deemed to have been met, and the Award shall become fully vested, earned
and payable to the fullest extent of the original award (or, if the earning of the Award is based on attaining a target level
of performance, the Award shall be deemed earned at the greater of actual performance or target performance), if the Participant’s
employment or service is terminated by the Company or an Affiliate (or any successor thereto) not for Cause or by the Participant
for Good Reason (as defined in the Plan) within two years after the effective date of a Change of Control. The Administrator shall
have sole discretion to determine the basis for the Participant’s termination of employment or service, including whether
such termination is for Good Reason. 

 

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(c)       Notwithstanding
Sections 7(a) and (b), in the event that the Participant has entered into an employment agreement, consulting agreement or other
similar agreement, plan or policy as of the effective date of the Plan, the Participant shall be entitled to the greater of the
benefits provided upon a change of control of the Company under the Plan or the respective employment agreement or other arrangement
as in effect on the Plan effective date, and such agreement or arrangement shall not be construed to reduce in any way the benefits
otherwise provided upon a Change of Control.

 

8.         Nontransferability
of Award and Shares. The Award shall not be transferable (including by sale, assignment, pledge or hypothecation) other than
by will or the laws of intestate succession, except for transfers if and to the extent permitted by the Administrator in a manner
consistent with the registration provisions of the Securities Act. The designation of a beneficiary in accordance with the Plan
does not constitute a transfer. The Participant shall not sell, transfer, assign, pledge or otherwise encumber the Shares subject
to the Award until the Restriction Period has expired and all conditions to vesting have been met. 

 

9.         Superseding
Agreement; Binding Effect. This Agreement supersedes any statements, representations or agreements of the Company with respect
to the grant of the Award, any other equity-based awards or any related rights, and the Participant hereby waives any rights or
claims related to any such statements, representations or agreements. This Agreement does not supersede or amend any existing
confidentiality agreement, non-solicitation agreement, non-competition agreement, employment agreement or any other similar agreement
between the Participant and the Company, including, but not limited to, any restrictive covenants contained in such agreements.
This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective executors, administrators,
heirs, successors and assigns. 

 

10.       Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard
to the conflict of laws provisions of any state, and in accordance with applicable federal laws of the United States.

 

11.       Amendment
and Termination; Waiver. This Agreement may be amended, altered, suspended and/or terminated as provided in the Plan. Without
limiting the effect of the foregoing, (a) the Administrator shall have unilateral authority to amend the Plan and this Agreement
(without Participant consent) to the extent necessary to comply with Applicable Law or changes to Applicable Law (including but
in no way limited to Code Section 409A and federal securities laws), and (b) the Administrator also shall have the unilateral
authority to make adjustments to the terms and conditions of the Award in recognition of unusual or nonrecurring events affecting
the Company or any Affiliate, or the financial statements of the Company or any Affiliate, or of changes in Applicable Law, or
accounting principles, if the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement
of the benefits or potential benefits intended to be made available under the Plan or necessary or appropriate to comply with
applicable accounting principles or Applicable Law. The waiver by the Company of a breach of any provision of this Agreement by
the Participant shall not operate or be construed as a waiver of any subsequent breach by the Participant.

 

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12.       Certificates
for Shares; Rights as a Stockholder. Except as otherwise provided herein, the Participant and his or her legal representatives,
legatees or distributees shall not be deemed to be the holder of any Shares subject to the Award and shall not have any rights
of a stockholder unless and until (and then only to the extent that) the Award has vested and certificates for such Shares have
been issued and delivered to him or her or them (or, in the case of uncertificated shares, other written evidence of ownership
in accordance with Applicable Law shall have been provided). A certificate or certificates for Shares subject to the Award shall
be issued in the name of the Participant (or, in the case of uncertificated shares, other written notice of ownership in accordance
with Applicable Law shall be provided) as soon as practicable after the Award has been granted. Notwithstanding the foregoing,
the Administrator may require that (a) the Participant deliver the certificate(s) (or other instruments) for the Shares to the
Administrator or its designee to be held in escrow until the Award vests and is no longer subject to a substantial risk of forfeiture
(in which case the Shares will be promptly released to the Participant) or is forfeited (in which case the Shares shall be returned
to the Company); and/or (b) the Participant deliver to the Company a stock power endorsed in blank (or similar instrument), relating
to the Shares subject to the Award which are subject to forfeiture. Except as otherwise provided in the Plan or this Agreement,
the Participant shall have all voting, dividend and other rights of a stockholder with respect to the Shares following issuance
of the certificate or certificates for the Shares; provided, however, that if any cash or non-cash dividends are declared and
paid by the Company with respect to any such Shares, such dividends shall be subject to the same vesting schedule, forfeiture
terms and other restrictions as are applicable to the Shares upon which such dividends are paid (and any such cash dividends shall
be paid within 60 days of the date on which such underlying shares vest. 

 

13.       Withholding;
Tax Matters. 

 

(a)       The
Participant acknowledges that the Company shall require the Participant to pay the Company in cash the amount of any tax or other
amount required by any governmental authority to be withheld and paid over by the Company to such authority for the account of
the Participant, and the Participant agrees, as a condition to the grant of the Award and delivery of the Shares or any other
benefit, to satisfy such obligations. Notwithstanding the foregoing, the Administrator may in its discretion establish procedures
to require or permit the Participant to satisfy such obligations in whole or in part, and any local, state, federal, foreign or
other income tax obligation relating to the Award, by delivery to the Company of shares of Common Stock held by the Participant
(which are fully vested and not subject to any pledge or other security interest) and/or by the Company withholding shares of
Common Stock from the Shares to which the Participant is otherwise entitled. The number of Shares to be withheld shall have a
Fair Market Value as of the date that the amount of tax to be withheld is determined as nearly equal as possible to, but not exceeding
(unless otherwise permitted by the Administrator in a manner in accordance with Applicable Law and applicable accounting principles),
the amount of such obligations being satisfied. Such withholding obligations shall be subject to such terms and procedures as
may be established by the Administrator.

 

(b)       The
Participant acknowledges that he or she is solely responsible and liable for the satisfaction of all taxes and penalties that
may arise in connection with the Award (including but not limited to any taxes arising under Code Section 409A), and the Company
shall not have any obligation to indemnify or otherwise hold the Participant harmless from any or all such taxes. The Participant
further acknowledges that the Company has made no warranties or representations to the Participant with respect to the tax consequences
(including, but not limited to, income tax consequences) related to the transactions contemplated by this Agreement, and the Participant
is in no manner relying on the Company or its representatives for an assessment of such tax consequences. The Participant acknowledges
that there may be adverse tax consequences upon the grant or vesting of the Award and/or the acquisition or disposition of the
Shares or any other benefit related to the Award and that the Participant has been advised that he or she should consult with
his or her own attorney, accountant and/or tax advisor regarding the decision to enter into this Agreement and the consequences
thereof. The Participant also acknowledges that the Company has no responsibility to take or refrain from taking any actions in
order to achieve a certain tax result for the Participant. 

 

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14.       Administration.
The authority to construe and interpret this Agreement and the Plan, and to administer all aspects of the Plan, shall be vested
in the Administrator, and the Administrator shall have all powers with respect to this Agreement as are provided in the Plan,
including but not limited to the sole authority to determine whether and to what degree the Award has been earned and vested.
Any interpretation of this Agreement by the Administrator and any decision made by it with respect to this Agreement are final
and binding. 

 

15.       Notices.
Except as may be otherwise provided by the Plan or determined by the Administrator, any written notices provided for in this Agreement
or the Plan shall be in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax or overnight
courier, or by postage paid first class mail. Notices sent by mail shall be deemed received three business days after mailed but
in no event later than the date of actual receipt. Notices shall be directed, if to the Participant, at the Participant’s
address indicated on Schedule A (or such other address as may be designated by the Participant in a manner acceptable to
the Administrator), or if to the Company, at the Company’s principal office, attention Chief Financial Officer, Akoustis
Technologies, Inc. Notice may also be provided by electronic submission, if and to the extent permitted by the Administrator.

 

16.       Severability.
If any provision of this Agreement is held illegal or invalid for any reason, such illegality or invalidity shall not affect the
remaining parts of the Agreement (which shall be construed or deemed amended to conform to Applicable Law), and the Agreement
shall be construed and enforced as if the illegal or invalid provision had not been included. 

 

17.       Restrictions
on Award and Shares. The Company may impose such restrictions on the Award and any Shares or other benefits underlying the
Award as it may deem advisable, including without limitation restrictions under the federal securities laws, the requirements
of any stock exchange or similar organization and any blue sky, state or foreign securities laws or other laws applicable to such
Award or Shares. Notwithstanding any other provision in the Plan or this Agreement to the contrary, the Company shall not be obligated
to issue, deliver or transfer shares of Common Stock, to make any other distribution of benefits, or to take any other action,
unless such delivery, distribution or action is in compliance with Applicable Law (including but not limited to the requirements
of the Securities Act). The Company is under no obligation to register the Shares with the Securities and Exchange Commission
or to effect compliance with the exemption, registration, qualification or listing requirements of any state or foreign securities
laws, stock exchange or similar organization, and the Company shall have no liability for any inability or failure to do so. The
Company may cause a restrictive legend or legends to be placed on any certificate for Shares issued pursuant to the Award in such
form as may be prescribed from time to time by Applicable Law or as may be advised by legal counsel. 

 

18.       Rules
of Construction. Headings are given to the sections of this Agreement solely as a convenience to facilitate reference. The
reference to any statute, regulation or other provision of law shall (unless the Administrator determines otherwise) be construed
to refer to any amendment to or successor of such provision of law.

 

19.       Right
of Offset. Notwithstanding any other provision of the Plan or this Agreement, the Company may at any time (subject to any
Code Section 409A considerations) reduce the amount of any payment or benefit otherwise payable to or on behalf of the Participant
by the amount of any obligation of the Participant to or on behalf of the Company or an Affiliate that is or becomes due and payable
and, by entering into this Agreement, the Participant shall be deemed to have consented to such reduction. 

 

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20.       Effect
of Certain Changes in Status. Notwithstanding the other terms of the Plan or this Agreement, the Administrator has the sole
discretion to determine (taking into account any Code Section 409A considerations), at the time of grant of the Award or at any
time thereafter, the effect, if any, on the Award (including but not limited to modifying the vesting and/or earning of the Award)
if the Participant’s status as an Employee, Director or Consultant changes, including but not limited to a change from full-time
to part-time, or vice versa, or if other similar changes in the nature or scope of the Participant’s employment or service
occur.

 

21.       Compliance
with Recoupment, Ownership and Other Policies or Agreements. Without limiting the terms of the Plan, and as a condition to
receiving this Award or any benefit thereunder, the Participant agrees that he or she shall abide by all provisions of any equity
retention policy, stock ownership guidelines, compensation recovery policy and/or other policies adopted by the Company or an
Affiliate, each as in effect from time to time and to the extent applicable the Participant. In addition, the Participant shall
be subject to such compensation recovery, recoupment, forfeiture or other similar provisions as may apply to him or her under
Applicable Law. 

 

22.       Counterparts;
Further Instruments. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. The parties hereto agree to execute such further instruments
and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Agreement. 

 

[Signatures
follow on Schedule A/Grant Notice]

 

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AKOUSTIS TECHNOLOGIES, INC. 

2016 STOCK INCENTIVE PLAN 

 

Restricted Stock Award Agreement

 

Schedule A/Grant Notice

 

1.         Grant
Terms. Pursuant to the terms and conditions of the Company’s 2016 Stock Incentive Plan, as it may be hereafter be amended
(the “Plan”), and the Restricted Stock Award Agreement attached hereto (the “Agreement”),
you (the “Participant”) have been granted a Restricted Stock Award (the “Award”) for _____________
shares (the “Shares”) of the Company’s Common Stock. Unless otherwise defined herein, capitalized terms
in this Schedule A shall have the same definitions as set forth in the Agreement and the Plan.

	 	 	 
	 	Name of Participant:	 
	 	 	 
	 	Address:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Grant Date:	___________________________, 20___
	 	 	 
	 	Number of Shares Subject to Award:	 
	 	 	 
	 	Vesting Schedule/Conditions:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Participant Type (Mark One):	☐  Employee
	 	 	☐ Director
	 	 	☐ Consultant

 

2.         By
my signature below, I, the Participant, hereby acknowledge receipt of this Grant Notice and the Restricted Stock Award Agreement
(the “Agreement”) dated __________ ___, 20__, between the Participant and Akoustis Technologies, Inc. (the “Company”)
which is attached to this Grant Notice. I understand that the Grant Notice and other provisions of Schedule A herein are
incorporated by reference into the Agreement and constitute a part of the Agreement. By my signature below, I further agree
to be bound by the terms of the Plan and the Agreement, including but not limited to the terms of this Grant Notice and the other
provisions of Schedule A contained herein. The Company reserves the right to treat the Award and the Agreement as cancelled, void
and of no effect if the Participant fails to return a signed copy of the Grant Notice within 30 days of grant date stated above.

 

	Signature: 	 	 	Date:	 
	 	Participant	 	 	 

 

    Schedule A-1

     

    

 

	 	 	Agreed to by:
	 	 	 	 
	 	 	AKOUSTIS TECHNOLOGIES, INC.
	 	 	 	 
	 	 	By:	 
	 	 	 	          [Name]
	 	 	 	          [Title]
	 	 	 	 
	Attest:	 	 	 
	 	 	 	 
	[Name]	 	 	 
	[Title]	 	 	 

 

Note: If there are any discrepancies in the name or address shown above, please make the appropriate
corrections on this form and return to Akoustis Technologies, Inc., Attention Chief Financial Officer. Please retain a copy of
the Agreement, including a signed copy of this Grant Notice, for your files.

 

    Schedule A-2Exhibit 10.1

934 Crane Purchase Agreement

This purchase agreement (“Agreement”) is entered into as of June 23, 2017 (the “Effective Date”) by and between  K & R, LLC, a Kentucky limited liability company (“Seller”), and  Industrial Services of America, Inc., a Florida corporation (“Buyer”) and shall remain in effect for so long as Buyer owes any obligation or indebtedness to Seller pursuant to the terms and conditions set forth herein (the period lasting from the Effective date to the termination of this Agreement upon full payment of the Purchase Price as set forth below, the “Term”).

1.  Conveyance.  In consideration for good and valuable consideration, Seller sells, assigns, transfers, conveys and grants to Buyer, all of its right, title and interest in and to the goods listed on Exhibit A attached to and made a part of this Agreement (“Equipment”).

2.   Payment Terms.

(a)   Payment.  Buyer shall pay Seller the amount of ninety thousand dollars ($90,000.00) (the “Purchase Price”).  The Purchase Price shall be paid as follows:

(i)   A 10% down payment equal to nine thousand dollars ($9,000) (“Down Payment”) shall be due and owing on or before the Effective Date; and 

(ii)   Eighty-one thousand dollars ($81,000), the remaining amount due, shall be evidenced by a Promissory Note, of even date herewith, made by Buyer in favor of Seller (the “Note”), which shall, provide that payments shall be paid by Buyer in  twenty-four (24) equal monthly installments of three thousand three hundred seventy-five dollars ($3,375).  Each installment payment shall be due and payable in full on the first day of each month, with the first payment being due on July 1, 2017. The Note shall also include the following terms:

All payments due  under  the Note  shall be in United States dollars and made by check or electronic transfer. 

(b)   Late Payments.  All late payments shall bear interest at the lesser of the rate of one percent (1%) per month or the highest rate permissible under applicable law, calculated daily and compounded monthly. Buyer shall also reimburse Seller for all costs incurred in collecting any late payments, including, without limitation, attorneys’ fees.

(c)   No Setoff.  Buyer shall not withhold payment of any amounts due and payable under this Agreement by reason of any setoff of any claim or dispute with the Seller, whether relating to Seller’s breach, bankruptcy or otherwise.

3.   Other Buyer Covenants & Obligations.

(a)   Security Interests.  As security for (i) Buyer’s obligation to pay the Purchase Price (ii) any interest owed pursuant to Section 2(b), (iii) all costs incurred in collecting any late payments pursuant to Section 2(b), and (iv) all other unfulfilled obligations and liabilities of Buyer to Seller pursuant to the terms of this Agreement, Buyer hereby grants to Seller a security interest in the Equipment, in accordance with the terms of  a Security Agreement entered into between Buyer and Seller of even date herewith. 

(b)   Recordation and Enforcement.  From time to time at its own expense, Buyer shall perform any and all steps that may be necessary, or that Seller may reasonably request, to record, secure, enforce, perfect and maintain perfected Seller’s security interests in the Equipment, including, but not limited to, executing and delivering to Seller financing and continuation statements pursuant to the Uniform Commercial Code (“UCC”) in effect in any applicable jurisdiction and any other papers, documents or instruments reasonably required by Seller in connection therewith, placing and maintaining signs, appointing custodians, executing and filing notices of liens, and evidencing Seller’s security interest in any other manner reasonably requested by Seller.

(c)   No Encumbrances.  Buyer shall not create, permit or suffer to exist, and shall take such action as is necessary to remove, any claim to or interest in or lien or encumbrance upon the Equipment, other than any security interest granted or expressly permitted or required under this Agreement, and Buyer shall defend, at Buyer’s expense, Seller’s right, title and interest in and to the Equipment against all claims and demands of all persons and entities.  Buyer shall not assign, sell, lease, lend, transfer, or otherwise dispose of, abandon or encumber any part or all of the Equipment, or attempt, offer or agree to do any of the foregoing, without Seller’s prior written consent.  Buyer shall ensure that no Equipment becomes attached or affixed to real estate in such a manner that it becomes a fixture or part of such real estate.

(d)   Maintenance.  Buyer shall maintain the Equipment in good working condition during the Term and shall at all times during the Term exercise reasonable care in using the Equipment only for its intended purpose, and shall bear the risk of loss and be responsible to Seller for any damage to such Equipment caused by fire, theft, accident, neglect, or abuse.  Seller shall have the right, with reasonable notice to Buyer, to enter the premises where the Equipment is located for the purpose of inspecting the Equipment.

(e)   Insurance.

(i)   During the Term, Buyer shall, at its own expense: (i) fully insure the Equipment against any and all physical loss or damage by fire, theft, burglary or any other cause occurring during the Term; and shall fully insure against liability for personal injury or property damage caused by or related to the Equipment and occurring while the Equipment is in Buyer’s possession. 

(ii)   All insurance coverages required hereunder shall contain such terms, be in such form, cover such periods and be written by such companies as may be satisfactory to Seller. 

(iii)   All insurance policies required hereunder shall (A) provide for a minimum of thirty (30) days prior written cancellation notice to Seller and (B) name Seller as an additional insured. 

(iv)   Upon the written request of Seller, Buyer shall provide Seller with copies of the certificates of insurance and policy endorsements for all insurance coverage required by this Section 3(e), and shall not do anything to invalidate such insurance. This Section 3(e) shall not be construed in any manner as waiving, restricting, or limiting the liability of either party for any obligations imposed under this Agreement.

4.  Disclaimer of Warranties. SELLER MAKES NO REPRESENTATION OR WARRANTY WHATSOEVER WITH RESPECT TO THE EQUIPMENT, INCLUDING ANY (a) WARRANTY OF MERCHANTABILITY; (b) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; (c) WARRANTY OF TITLE; OR (d) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY; WHETHER ARISING BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE.  BUYER ACKNOWLEDGES THAT IT HAS NOT RELIED ON ANY REPRESENTATION OR WARRANTY MADE BY SELLER, OR ANY OTHER PERSON ON SELLER’S BEHALF, EXCEPT AS SPECIFICALLY PROVIDED IN THIS AGREEMENT.

5.   Further Assurances. Seller for itself, its successors and assigns, hereby covenants and agrees that, at any time and from time to time on Buyer’s written request, Seller will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may be reasonably required by Buyer in order to assign, transfer, set over, convey, assure and confirm unto and vest in Buyer, its successors and assigns, title to the Equipment, provided however, that this Section 5 shall in no way limit Seller’s rights in the event of a Default.

6.   Default.  The occurrence of any one or more of the following events shall constitute an event of default by Buyer under this Agreement (each such occurrence a “Default” and collectively, “Events of Default”):

(a)   Buyer fails to perform, fulfill or observe any of its obligations under this Agreement including without limitation any failure to timely pay any installment payment under Section 2(a)(ii) or any failure to meet its obligations and covenants under Section 3.

(b)   Material loss, theft, damage or destruction of any of the Equipment which is not fully compensated by insurance proceeds or otherwise;

(c)   The making of any levy on, or seizure or attachment of, any of the Equipment;

(d)   Buyer becomes insolvent, makes an assignment for the benefit of creditors, appoints a committee of creditors, or makes or sends any notice of an intended bulk transfer; or

(e)   Any proceeding shall be instituted by or against Buyer, seeking to adjudicate Buyer as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment or composition of Buyer or its debts under any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeking appointment of a receiver, trustee, custodian or other similar official Buyer or for a substantial part of its assets.

Buyer shall be granted a thirty (30) day period (“Cure Period”) within which it may cure a Default after receiving written notice from Seller that Buyer has committed a Default.  Should Buyer fail to cure such Default during the Cure Period, then in addition to all rights and remedies of a secured party available under the UCC, other applicable statutes or rules, or at law or in equity, in any jurisdiction in which enforcement is sought, all such rights and remedies being cumulative and not exhaustive and subject to successive or concurrent enforcement, Seller may direct Buyer by written notice to assemble and make available to Seller all or any part of the Equipment at a place designated by Seller which is reasonably convenient to both parties, so that Seller may take possession of and remove the Equipment, if it so desires, or Seller may enter without notice or legal process any premises where the Equipment may be found  in order to take possession of the Equipment, in each case for the purpose of effecting a public or private sale or other disposition in a commercially reasonable manner of the Equipment for cash or for such other consideration acceptable to Seller as payment and satisfaction of Buyer’s obligations hereunder.  Seller shall furnish Buyer with reasonable notice of the time and place of such public sale or other disposition or the time after which any private sale or other disposition is to be made, Buyer hereby agreeing that, unless otherwise expressly required by applicable law,  such requirement of reasonable notice shall be met if notice is mailed by certified mail, postage prepaid, to the address of Buyer set forth herein at least ten (10) days before either the time of any such public sale or disposition or the time after which any private sale or other disposition is to be made.

7.   Governing Law. This Agreement is governed by, and construed in accordance with, the laws of the Commonwealth of Kentucky, United States of America, without regard to the conflict of laws provisions thereof.

8.   Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement.  A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

IN WITNESS WHEREOF, Seller and Buyer has each duly executed and delivered this Agreement as of the Effective Date.

 

	
K & R, LLC

	
Industrial Services of America, Inc.

	
By  KLETTER HOLDING LLC, as Member

 

By:  /s/ Orson Oliver   

Orson Oliver, President

 

	
 

By:  /s/ Todd Phillips

Name: Todd Phillips

Title:  President and CFO

	
 

	
 

	
 

	
 

 

 

EXHIBIT A

EQUIPMENT DESCRIPTION

Liebherr Hydraulic Scrap Handler

Model Number: A934C HD

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