Document:

Exhibit 10.3_Purchaser_Rights_Agreement

		
			Exhibit 10.3
		

		
			Purchaser rights agreement
		

		
			This PURCHASER RIGHTS AGREEMENT (this “Agreement”), dated as of [●], 2018, is entered into by and between NextDecade Corporation, a Delaware corporation (“NextDecade” or the “Company”), and each of the parties set forth on the signature pages hereto under the heading “Purchasers” (the “Purchasers”).  Each of NextDecade and the Purchasers are referred to herein as a “Party” and collectively as the “Parties.”  
		

		
			RECITALS:
		

		
			WHEREAS, the Company has commenced a convertible preferred equity and warrant offering (the “Series B Preferred Equity Offering”), pursuant to which the Purchasers have purchased shares of the Company’s Series B Convertible Preferred Stock (the “Series B Preferred Stock”), together with certain associated Warrants (as defined herein); and
		

		
			WHEREAS, in connection with the purchase of the Series B Preferred Stock, the Purchasers were granted the additional rights set forth in this Agreement.
		

		
			NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 
		

			
	
			
				 Section 1.
			DEFINITIONS.  As used in this Agreement, the following terms shall have the following meanings: 

		
			“Affiliate” means, with respect to any specified Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person.  
		

		
			“Agreement” has the meaning assigned to it in the preamble hereto.
		

		
			“BlackRock Parties” means the holders of a majority of the shares of the Series B Preferred Stock that are held by BlackRock Financial Management Inc., BlackRock Inc., a Purchaser, or any of their respective Affiliates.
		

		
			“Board” means the board of directors of the Company.
		

		
			“Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in the City of New York.
		

		
			“Commission” means the United States Securities and Exchange Commission.
		

		
			“Common Stock” means the common stock of the Company, $0.0001 par value.
		

		
			“Company” has the meaning assigned to it in the preamble hereto.  
		

		
			

		 

 

		

		
			“Corporate Opportunity Breach” has the meaning assigned to it in Section 3(d) of this Agreement.
		

		
			“EPC Contract” means a fixed price, date certain engineering, procurement and construction contract with respect to the Project.
		

		
			“FID Equity” means capital or funds raised by the Company or any of its controlled affiliates on or after FID in order to finance the development, construction, commissioning and/or operation of the Project.
		

		
			“FID Equity Notice” has the meaning set forth in ‎Section 2(a) of this Agreement.
		

		
			“FID Equity Securities” means any equity or equity-linked securities (including, without limitation, preferred equity, combinations of equity and/or any other instruments or forms of equity capital, as well as warrants, options, purchase rights, and other securities that are exercisable or exchangeable for or convertible into, equity securities of the Company or its controlled affiliates), issued by the Company or any of its controlled affiliates, whether offered and sold in a private placement or as part of a public offering, to the extent such securities or other instruments are issued in exchange for FID Equity.
		

		
			“Final Investment Decision” or “FID” means the Board has affirmatively voted or consented to undertake construction of the Project and the Company has given a full notice to proceed under an EPC Contract.
		

		
			“Form of Warrant” means that certain Form of Warrant Agreement attached as Exhibit D to the Series B Stock Purchase Agreement. 
		

		
			“Governmental Authority” means any federal, national, supranational, foreign, state, provincial, local, county, municipal or other government, any governmental, regulatory or administrative authority, agency, department, bureau, board, commission or official or any quasi-governmental or private body exercising any regulatory, taxing, importing or other governmental or quasi-governmental authority, or any court, tribunal, judicial or arbitral body, or any Self-Regulatory Organization. 
		

		
			“Law” means any federal, national, supranational, foreign, state, provincial, local, county, municipal or similar statute, law, common law, guideline, policy, ordinance, regulation, rule, code, constitution, treaty, requirement, judgment or judicial or administrative doctrines enacted, promulgated, issued, enforced or entered by any Governmental Authority.
		

		
			“NextDecade” has the meaning assigned to it in the preamble hereto.
		

		
			“Parity Stock” has the meaning ascribed to such term in the Series B Certificate of Designations.
		

		
			“Party” or “Parties” has the meaning assigned to it in the preamble hereto.
		

		
			“Person” means any individual, partnership, firm, corporation, limited liability company, association, joint venture, trust, Governmental Authority, unincorporated organization or other 

		 

		

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entity, as well as any syndicate or group that would be deemed to be a person under Section 13(d)(3) of the Exchange Act. 
		

		
			“Project” means the LNG liquefaction and export facility to be located on the U.S. Gulf Coast known as the Rio Grande LNG Project.
		

		
			“Purchasers” has the meaning assigned to it in the preamble hereto.
		

		
			“Purchaser FID Equity Preference Amount” means an aggregate amount of FID Equity Securities equal to $290 million, which amount shall be applied (i) as to an FID on Trains 1 and 2, up to a maximum of $200 million and (ii) as to an FID on Train 3, up to a maximum of $90 million such that the Purchaser FID Equity Preference Amount does not exceed $290 million.
		

		
			“Purchaser Rights Agreement” means this Agreement.
		

		
			“Self-Regulatory Organization” means any securities exchange, futures exchange, contract market, any other exchange or corporation or similar self-regulatory body or organization applicable to a Party to this Agreement. 
		

		
			“Series B Certificate of Designations” means the Certificate of Designations of Series B Convertible Preferred Stock of NextDecade Corporation, dated as of [●], 2018.
		

		
			“Series B Preferred Equity Offering” has the meaning assigned to it in the Recitals hereto.  
		

		
			“Series B Preferred Stock” has the meaning assigned to it in the Recitals hereto.
		

		
			“Series B Purchase Price” means the aggregate purchase price to be paid by the Purchasers pursuant to the Series B Stock Purchase Agreement in respect of all shares of Series B Preferred Stock that the Purchasers have purchased pursuant thereto. 
		

		
			“Series B Stock Purchase Agreement” means that certain Series B Convertible Preferred Stock Purchase Agreement, dated as of August [●], 2018, by and among the Company and the Purchasers.
		

		
			“Series C Notice” has the meaning assigned to it in Section 4(a) of this Agreement.
		

		
			“Series C Preferred Stock” has the meaning assigned to such term in the Series B Certificate of Designations.
		

		
			  “Termination Event” means the occurrence at any time of the Purchasers’ and their Affiliates’ and permitted transferees’ (pursuant to Section 10.10 of the Series B Stock Purchase Agreement) aggregate ownership interest in the Company falling below fifty percent (50%) of the interest purchased under the Series B Stock Purchase Agreement, excluding for the avoidance of doubt, shares acquired in connection with such purchase representing an origination fee with respect thereto (as determined by reference to either (i) the number of shares of Series B Preferred Stock acquired under the Series B Stock Purchase Agreement or (ii) to the extent that such Series B Preferred Stock acquired under the Series B Stock Purchase Agreement has been 

		 

		

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converted to Common Stock, fifty percent (50%) of the equivalent number of shares of Common Stock, in each case, adjusted to account for any changes to the conversion price). 
		

		
			“Trains 1 and 2” means the first two liquefaction units to be constructed as part of the Project.
		

		
			“Train 3” means the third liquefaction unit to be constructed as part of the Project.
		

		
			“Warrants” means the warrants to purchase shares of Common Stock provided for in the Series B Stock Purchase Agreement.  
		

			
	
			
				 Section 2.
			FID EQUITY RIGHT OF FIRST REFUSAL

		
			. 
		

		
			As an inducement for the Purchasers to enter into the transactions contemplated by the Series B Stock Purchase Agreement, the Company agrees, effective upon the Purchasers’ funding the Series B Purchase Price in full, as follows:
		

			
	
			
				 (a)
			If the Company proposes to consummate the issuance and sale of FID Equity Securities, then Company shall give written notice (an “FID Equity Notice”) to the Purchasers of the proposed issuance and sale of all such FID Equity Securities.  The FID Equity Notice shall provide information consistent with notices to other third-party prospective investors, as determined by the Company with its financial advisor.

			
	
			
				 (b)
			The Purchasers shall have the right to participate in the process to raise FID Equity Securities by the Company and its advisors.  The Purchasers shall be required to comply with the syndication process as established by the Company’s advisors, and will have access to information consistent with third-party prospective investors.  Provided that any Purchaser gives notice to the Company consistent with the syndication process, the Purchasers, collectively, shall have the right, but not the obligation, to purchase up to the Purchaser FID Equity Preference Amount of FID Equity Securities, on the same terms and conditions as other investors who purchase a comparable amount of FID Equity Securities (with each such Purchaser electing to participate in such syndication participating pro rata based on its percentage ownership of the Company, determined on a fully diluted basis, relative to the other Purchasers who have elected to participate).    

			
	
			
				 (c)
			To the extent that the Purchasers do not exercise their right, pursuant to Section 2‎(b), to purchase the full amount of the Purchaser FID Equity Preference Amount of FID Equity Securities, then Company shall be free to issue the FID Equity Securities with respect to which such exercise was not made; provided,  however, that if the terms of such FID Equity Securities allocated for sale to third parties are more favorable than the terms originally offered to the Purchasers, the Company shall be obligated to offer those same, improved, terms to the Purchasers and the Purchasers shall be allowed another opportunity to accept or reject such improved terms as provided herein.  If one or more Purchasers elects to purchase FID Equity Securities pursuant to Section 2‎(b), then the Company shall sell to such Purchasers, and such Purchasers shall purchase from the Company, for the consideration and on the terms as established by the syndication process, the FID Equity Securities that such Purchasers have duly elected to purchase pursuant to this Section 2‎(c) and the Company may issue the balance, if any, of the FID Equity Securities it 

		 

		

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	proposed to issue in such FID Equity Notice in accordance with the immediately preceding sentence.

			
	
			
				 (d)
			If the sale of the FID Equity Securities is not completed within six (6) months of the date on which the FID Equity Notice is given, then the Company shall not thereafter sell FID Equity Securities without complying anew with the procedures described in this ‎Section 2.

			
	
			
				 (e)
			Upon the advice of its financial adviser, the Company may modify the process and timing related to ‎Section 2.  

			
	
			
				 Section 3.
			BOARD OBSERVER RIGHT.

			
	
			
				 (a)
			Concurrently with the issuance of the Series B Preferred Stock to the Purchasers and until such time as a Termination Event has occurred, the BlackRock Parties shall have the collective right to designate in writing a representative to attend all meetings of the Board and any committee thereof in a nonvoting observer capacity and, in this respect, the Company shall give such representative copies of all notices, minutes, consents, and other materials that it provides to its directors at the same time and in the same manner as provided to such directors; provided,  however, that such representative shall agree to hold in confidence all information or material so provided; and provided further, that the Company reserves the right to withhold any information and to exclude such representative from any meeting or portion thereof if access to such information or attendance at such meeting or portion thereof (a) would adversely affect the attorney-client privilege between the Company and its counsel, or (b) result in disclosure to such representative of competitively sensitive information about the Company. The Company shall notify such representative in writing if the Company has withheld any such information or excluded such representative from any such meeting pursuant to the preceding sentence, provided that the Company shall not be required to identify the content or subject matter withheld or the purpose of such meeting.  Notwithstanding anything herein to the contrary, such representative may disclose information or material provided to it pursuant to this Section 3(a) to the extent reasonably necessary (i) for Purchasers or their respective Affiliates, partners, members, direct and indirect investors, associates, employees and professional and financial advisors to evaluate its investment in the Company so long as such parties are under an obligation to maintain the confidentiality of such information no less restrictive than that set forth in Section 3(c) with respect to the Purchasers, or (ii) to comply with applicable Law.

			
	
			
				 (b)
			The representative designated by the BlackRock Parties will serve in such capacity until such person is replaced by a subsequent representative designated in writing by the BlackRock Parties or until the BlackRock Parties, by notice to the Company, relinquish their collective right to designate a person to serve as an observer at meetings of the Board and its committees. 

			
	
			
				 (c)
			Each Purchaser agrees (and any representative will be required to agree) that any information or materials received by the representative shall be kept confidential, used only for the purpose of evaluating such Purchaser’s investment in the 

		 

		

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	Company, and shall not be disclosed to third parties (except as permitted in Section 3(a)) without the prior written consent of the Company, provided that this obligation shall not apply to information (i) which becomes generally available to the public other than as a breach of this obligation, (ii) is acquired from a third party who did not receive the information directly or indirectly from the Company and owes no obligation of confidence in respect of the information, or (iii) has been independently developed by the recipient or was known to it prior to receipt.

			
	
			
				 (d)
			The Company shall not take any action that would lessen, restrict, prevent or otherwise have an adverse effect upon the foregoing right of the BlackRock Parties to designate a representative to serve as an observer at meetings of the Board and its committees; provided,  however, that the Company shall not be prohibited from taking such action that the Board determines may be necessary to (A) comply with any rule or regulation of the Commission or any Self-Regulatory Organization or (B) comply with applicable Law. 

			
	
			
				 (e)
			 Except as any Purchaser may otherwise agree in writing, each Purchaser and its Affiliates shall have the right to (i) engage, directly or indirectly, in the same or similar business activities or lines of business as the Company and (ii) do business with any client, competitor or customer of the Company, with the result that the Company shall have no right in or to such activities or any proceeds or benefits therefrom, and except as otherwise provided in this Agreement, neither any Purchaser nor any of their respective Affiliates shall be liable to the Company or its stockholders for breach of any fiduciary duty by reason of any such activities of any Purchaser or any of their respective Affiliates participation therein. If any Purchaser acquires knowledge of a potential transaction or matter that may be a corporate opportunity for both the Company and such Purchaser or its Affiliates, then such Purchaser and its Affiliates shall have no duty to communicate or present such corporate opportunity to the Company and the Company hereby renounces any interest or expectancy it may have in such corporate opportunity, with the result that neither such Purchaser nor any of its Affiliates shall be liable to the Company or its stockholders for breach of any fiduciary duty, including for breach of any fiduciary duty as a stockholder of the Company by reason of the fact that such Purchaser pursues or acquires such corporate opportunity for itself, directs such corporate opportunity to another Person, or does not present such corporate opportunity to the Company; provided,  however, that if any Purchaser acquires knowledge of a potential transaction or matter that may be a corporate opportunity for both the Company, on the one hand, and such Purchaser or its Affiliates, on the other, as a result of information shared by the Company with members or observers of the Board, including the representative designated by the BlackRock Parties pursuant to Section 3(a), then such corporate opportunity belongs to the Company, and such Purchaser shall be liable to the Company and its stockholders for breach of any fiduciary duty, including for breach of any fiduciary duty as a stockholder of the Company by reason of the fact that such Purchaser or its Affiliates usurps such corporate opportunity for itself, or directs such corporate opportunity to another Person (a “Corporate Opportunity Breach”). Except for losses arising out of a Corporate Opportunity Breach, the Company shall indemnify the Purchasers and their respective Affiliates against any losses resulting from any breach of 

		 

		

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	fiduciary duty or other claim brought by or through the Company or any stockholder of the Company with respect to the matters contemplated by this Section 3(e).  

			
	
			
				 Section 4.
			SERIES C PURCHASE RIGHT.  

		
			As an inducement for the Purchasers to enter into the transactions contemplated by the Series B Stock Purchase Agreement, until FID, the Company agrees, effective upon the Purchasers’ funding the Series B Purchase Price in full, as follows:
		

			
	
			
				 (a)
			If the Company proposes to consummate the issuance and sale of any shares of Series C Preferred Stock, then Company shall give written notice (a “Series C Notice”) to the Purchasers of the proposed issuance and sale of all such shares of Series C Preferred Stock.  The Series C Notice shall provide information consistent with notices to other third-party prospective investors, as determined by the Company with its financial advisor.

			
	
			
				 (b)
			Each Purchaser shall have the right to purchase a number of shares of Series C Preferred Stock equal to its pro rata share of any issuance of Series C Preferred Stock, which pro rata share shall be determined based on (i) such Purchaser’s percentage ownership of the then outstanding Series B Preferred Stock and Series A Preferred Stock (treating all such Series B Preferred Stock and Series A Preferred Stock as a single class), or (ii) if no Series A Preferred Stock or Series B Preferred Stock is then outstanding, such Purchaser’s percentage ownership of Series B Preferred Stock and Series A Preferred Stock as of the last date on which such securities were outstanding.  

			
	
			
				 (c)
			To the extent that any Purchaser does not exercise its right, pursuant to Section 4(b), to purchase the total number of shares of Series C Preferred Stock that such Purchaser is entitled to purchase, then Company shall be free to sell such shares of Series C Preferred Stock with respect to which such exercise was not made; provided,  however, that if the terms of the issuance of such shares of Series C Preferred Stock allocated for sale to third parties are more favorable than the terms of the Series C Preferred Stock originally offered to the Purchasers, the Company shall offer those same, improved, terms to the Purchasers and the Purchasers shall be allowed another opportunity to accept or reject the more favorable terms as provided herein.  If any Purchaser elects to purchase shares of Series C Preferred Stock pursuant to Section 4(b), then the Company shall sell to such Purchaser, and such Purchaser shall purchase from the Company, for the consideration and on the terms as established in connection with such offering, the shares of Series C Preferred Stock that such Purchasers have duly elected to purchase pursuant to this Section 4.

			
	
			
				 (d)
			If the sale of the Series C Preferred Stock is not completed within six (6) months of the date on which the Series C Notice is given, then the Company shall not thereafter sell Series C Preferred Stock without complying anew with the procedures described in this Section 4.

		
			

		 

		

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				 Section 5.
			MISCELLANEOUS.    

			
	
			
				 5.1
			Representations and Warranties. The Company hereby represents to the Purchasers that (i) it has full organizational power and authority to execute and deliver this Agreement and to comply with its obligations hereunder; (ii) the execution and delivery of this Agreement by it have been duly and validly authorized by all necessary organizational action on its part; and (iii) this Agreement has been duly and validly executed and delivered by it and the provisions of this Agreement constitute valid and binding obligations of it, enforceable against it in accordance with the terms hereof, except that such enforceability (x) may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting or relating to the enforcement of creditors’ rights generally, and (y) is subject to general principles of equity and the discretion of the court before which any proceedings seeking injunctive relief or specific performance may be brought.

			
	
			
				 5.2
			Payments.  All payments made by or on behalf of the Company or any of their Affiliates to the Purchasers or their respective assigns, successors or designees pursuant to this Agreement shall be without withholding, set-off, counterclaim or deduction of any kind.

			
	
			
				 5.3
			Arm’s Length Transaction.  The Company acknowledges and agrees that (i) the Series B Preferred Equity Offering and any other transactions described in this Agreement are an arm’s-length commercial transaction between the Parties and (ii) no Purchaser has assumed nor will any Purchaser assume an advisory or fiduciary responsibility in the Company’s favor with respect to any of the transactions contemplated by this Agreement or the process leading thereto, and no Purchaser has any obligation to the Company with respect to the transactions contemplated by this Agreement except those obligations expressly set forth in this Agreement or the Offering Documents to which it is a party.

			
	
			
				 5.4
			No Waiver of Rights.  All waivers hereunder must be made in writing, and the failure of any Party at any time to require another Party’s performance of any obligation under this Agreement shall not affect the right subsequently to require performance of that obligation.  Any waiver of any breach of any provision of this Agreement shall not be construed as a waiver of any continuing or succeeding breach of such provision or a waiver or modification of any other provision.    

			
	
			
				 5.5
			Notices.  All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by an internationally recognized overnight courier service, by email or registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for any Party as shall be specified by such Party in a notice given in accordance with this Section 5.5).    

		
			(a)If to the Company, to:  
		

		
			NextDecade Corporation
		

		
			3 Waterway Square Place, Suite 400
		

		
			The Woodlands, Texas 77380
		

		
			Attention:  Krysta De Lima, General Counsel
		

		
			

		 

		

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			krysta@next-decade.com
		

		
			 
		

		
			With a copy (which shall not constitute notice to the Company) to:
		

		
			 
		

		
			King & Spalding LLP
		

		
			1100 Louisiana Street
		

		
			Houston, Texas 77002
		

		
			Fax: (713) 751-3290
		

		
			Attention:Jeffery K. Malonson
		

		
			jmalonson@kslaw.com
		

		
			 
		

		
			(b)If to any Purchaser to the applicable notice addresses set forth in the Stock Purchase Agreement.
		

		
			Any of the foregoing addresses may be changed by giving notice of such change in the foregoing manner, except that notices for changes of address shall be effective only upon receipt.  
		

			
	
			
				 5.6
			Headings.  The section and subsection headings in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.  

			
	
			
				 5.7
			Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect for so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.  

			
	
			
				 5.8
			 Entire Agreement. This Agreement and the agreements and documents referenced herein constitute the entire agreement of the Parties with respect to the subject matter hereof and supersede all prior agreements and undertakings, both written and oral, between the Parties with respect to the subject matter hereof.  

			
	
			
				 5.9
			Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.  Except as set forth below or as otherwise agreed by the Parties in writing, neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned by either Party (whether by operation of law or otherwise) without the prior written consent of the other Party.  Notwithstanding the foregoing, the rights, obligations and interests of the Purchasers in this Agreement may be assigned or otherwise transferred, in whole or in part, by a Purchaser to any Affiliate of such Purchaser without the consent of the Company; provided,  however, that any such assignee or transferee, as a condition precedent to such transfer, becomes a Party to this Agreement and assumes the obligations of such Purchaser, in each case, with respect to the transferred rights under this Agreement.

		
			

		 

		

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				 5.10
			No Third-Party Beneficiaries.  This Agreement shall be binding upon and inure solely to the benefit of the Parties and their respective successors and permitted assigns and, except as expressly set forth in Section 5.9 of this Agreement, nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever.  

			
	
			
				 5.11
			Amendment.  This Agreement may not be altered, amended, or modified except by a written instrument executed by or on behalf of the Company and the Purchasers.

			
	
			
				 5.12
			Governing Law.  This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State of New York, without regard to the conflicts of law principles thereof.

			
	
			
				 5.13
			Consent to Jurisdiction.  Each of the Parties (a) irrevocably and unconditionally agrees that any actions, suits or proceedings, at law or equity, arising out of or relating to this Agreement or any agreements or transactions contemplated hereby shall be heard and determined by the federal or state courts located in New York County in the State of New York; (b) irrevocably submits to the jurisdiction of such courts in any such action, suit or proceeding; (c) consents that any such action, suit or proceeding may be brought in such courts and waives any objection that such Party may now or hereafter have to the venue or jurisdiction of such courts or that such action or proceeding was brought in an inconvenient forum; and (d) agrees that service of process in any such action, suit or proceeding may be effected by providing a copy thereof by any of the methods of delivery permitted by Section 5.5 to such Party at its address as provided in Section 5.5 (provided that nothing herein shall affect the right to effect service of process in any other manner permitted by Law).  

			
	
			
				 5.14
			Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER THEORY).  EACH OF THE PARTIES HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.14.    

			
	
			
				 5.15
			Counterparts.  This Agreement may be executed and delivered (including by facsimile or electronic transmission) in one or more counterparts, and by the different Parties in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.  Signatures of the Parties transmitted by electronic mail shall be deemed to be their original signatures for all purposes. 

			
	
			
				 5.16
			Specific Performance.  Each Party acknowledges that, in view of the uniqueness of the securities referenced herein and the transactions contemplated by this Agreement, the 

		 

		

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	other Parties would not have an adequate remedy at law for money damages in the event that this Agreement has not been performed in accordance with its terms, and therefore agrees that the other Parties shall be entitled to specific performance and injunctive or other equitable relief, without the necessity of proving the inadequacy of monetary damages as a remedy.  

			
	
			
				 5.17
			Amendment of Company Documents.  Neither the Company nor the Board shall (a) permit the bylaws or certificate of incorporation of the Company to be amended in any manner that would eliminate or have any negative impact on any of the provisions hereof or the rights conveyed to the Purchasers hereunder or (b) enter into any agreement, instrument or other arrangement that conflicts with the rights and provisions of this Agreement.  

			
	
			
				 5.18
			Waiver of Consequential Damages.  In no event shall any Party or its Affiliates, or their respective managers, members, shareholders or representatives, be liable hereunder at any time for punitive, incidental, consequential special or indirect damages, including loss of future profits, revenue or income, or loss of business reputation of any other Party or any of its Affiliates, whether in contract, tort (including negligence), strict liability or otherwise, and each Party hereby expressly releases each other Party, its Affiliates, and their respective managers, members, shareholders, partners, consultants, representatives, successors and assigns therefrom.

			
	
			
				 5.19
			Rules of Construction.  The Parties and their respective legal counsel participated in the preparation of this Agreement, and therefore, this Agreement shall be construed neither against nor in favor of any of the Parties, but rather in accordance with the fair meaning thereof. All definitions set forth in this Agreement are deemed applicable whether the words defined are used in this Agreement in the singular or in the plural, and correlative forms of defined terms have corresponding meanings.  The term “including” is not limiting and means “including without limitation.”  The term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder” and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement.  Section, subsection, clause, schedule, annex and exhibit references are to this Agreement unless otherwise specified.  Any reference to this Agreement shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, and supplements thereto and thereof, as applicable.  Whenever the context may require, any pronoun includes the corresponding masculine, feminine and neuter forms. 

		
			[Signature pages follow]
		

		
			 
		

		
			

		 

		

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			IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written.  
		

		
			NEXTDECADE CORPORATION 
		

		
			 
		

		
			 
		

		
			By: 
		

		
			Name: 
		

		
			Title: 
		

		
			 
		

		
			

		 

		

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			PURCHASERS:
		

		
			 
		

		
			 
		

		
			[PURCHASER]
		

		
			 
		

		
			 
		

		
			By: 
		

		
			Name: 
		

		
			Title:
		

		
			 
		

		
			 
		

		
			[PURCHASER]
		

		
			 
		

		
			 
		

		
			By: 
		

		
			Name: 
		

		
			Title:
		

		
			 
		

		
			 
		

		
			 
		

		 

		

			13Exhibit 10.1

 

 

AVINGER, INC.

 

Officer and Director Share Purchase Plan

 

August 22, 2018

 

1. Purpose. The purpose of the Plan is to provide a convenient method by which Eligible Individuals of the Company may purchase fully vested Company common stock at fair market value. This Plan is effective as of August 22, 2018.

 

2. Definitions.

 

2.1 “1934 Act” means the Securities Exchange Act of 1934, as amended. Reference to a specific section of the 1934 Act or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

 

2.2 “Board” means the Board of Directors of the Company.

 

2.3 “Committee” means the Compensation Committee of the Board.

 

2.4 “Company” means Avinger, Inc.

 

2.5 “Director” means a nonemployee member of the Board.

 

2.6 “Eligible Individual” means an Officer or Director who has been designated by the Committee as eligible to participate in the Plan.

 

2.7 “Fair Market Value” means the closing sales price for a Share (or the closing bid, if no sales were reported) on the relevant date, or if there were no sales on such date, the last quoted per Share selling price for Shares on the nearest day before the relevant date, as quoted on the established stock exchange or national market system where the Shares are listed on the day of determination, as reported in The Wall Street Journal or such other source as the Committee deems reliable.

 

2.8 “Fees” means the cash retainer fees and meeting fees payable to a Director biannually as a result of his or her service on the Board and its committees during the applicable biannual payment period.

 

2.9 “Officer” means a person who is an “Executive Officer” of the Company within the meaning of Nasdaq Listing Rule 5605(a) or its successor provision.  As of the date of the adoption of this Plan, the term “Executive Officer” for purposes of Nasdaq Listing Rule 5605(a) means the Company’s president, principal financial officer, principal accounting officer (or, if there is no such accounting officer, the controller), any vice-president in charge of a principal business unit, division or function (such as sales, administration or finance), any other officer who performs a policy-making function, or any other person who performs similar policy-making functions for the Company, including officers of the Company’s parent or subsidiaries if they perform such policy-making functions for the Company.

 

2.10 “Participant” means an Eligible Individual who elects to participate in the Plan in accordance with Section 5.1.

 

2.11 “Plan” means this Officer and Director Share Purchase Plan, as it may be amended from time to time.

 

2.12 “Share” means a share of the Company’s common stock.

 

 

2.13 “Trading Day” means a day on which national stock exchanges and the Nasdaq Global Market are open for trading. A Trading Day begins at the time trading begins on such day.

 

2.14 “Trading Window” means the period commencing at the opening of market on the third Trading Day following the date of public disclosure of the financial results for a particular fiscal quarter or fiscal year of the Company and continuing until the close of market on the fifteenth Trading Day prior to the close of the fiscal quarter, provided that during this period no circumstances exist that otherwise closes the Trading Window.

 

3. Administration.

 

3.1 The Plan will be interpreted and administered by the Committee, whose actions and interpretations will be final and binding.

 

3.2 The Committee, in its sole discretion, will have the power, subject to, and within the limitations of, the express provisions of the Plan:

 

3.2.1 To interpret and determine the meaning, validity and parameters of the terms and provisions of the Plan and to determine any question arising under, or in connection with, the administration, operation or validity of the Plan;

 

3.2.2 To determine the form and manner for Participants to make elections under the Plan and to approve forms of election to be used in conjunction with the Plan;

 

3.2.3 To determine the time or times when Eligible Individuals may elect to participate in the Plan or otherwise change such elections;

 

3.2.4 To select the Officers and Directors who will be eligible to participate in the Plan from time to time;

 

3.2.5 To make any and all determinations as it may deem necessary or appropriate for the administration of the Plan, including the number of Shares to be issued in exchange for a Participant’s aggregate deductions;

 

3.2.6 To establish, amend and revoke rules and procedures relating to the Plan (for example, but not by way of limitation, with respect to Eligible Individual elections to participate in the Plan and the delivery of Shares) as it may deem necessary or appropriate for the administration of the Plan;

 

3.2.7 To employ such brokers, counsel, agents and advisers, and to obtain such broker, legal, clerical and other services, as it may deem necessary or appropriate in carrying out the provisions of the Plan; and

 

3.2.8 To delegate all or any part of its authority and powers under the Plan to one or more officers or employees of the Company, including with respect to the day-to-day administration of the Plan.

 

4. Shares Subject to the Plan.

 

4.1 Subject to adjustment as provided in Section 4.2, the total number of Shares available for issuance under the Plan shall equal two-hundred thousand (200,000). Shares granted under the Plan may be either authorized but unissued Shares or treasury Shares.

 

4.2 In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares, then the Committee shall, in such manner as it may deem equitable, adjust the number and class of Shares which may be delivered under the Plan. Notwithstanding the preceding, the number of Shares available for issuance under the Plan always shall be a whole number.

 

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5. Election to Purchase Shares.

 

5.1 Elections.

 

(i) Each Eligible Individual’s decision to participate in the Plan shall be entirely voluntary. An Eligible Individual may become a Participant in the Plan by enrolling or re-enrolling in the Plan during a Trading Window, provided that the Participant does not otherwise possess material non-public information concerning the Company (within the meaning of the 1934 Act) at the time of his or her election. In order to enroll, an Eligible Individual must complete, sign and submit to the Company an election form, in such form as the Committee will determine in its sole discretion.

 

(ii) On his or her election form, each Eligible Individual must authorize payroll deductions or, in the case of Directors, deductions from Fees for the purposes of purchasing fully vested Shares.  Any deductions for this Plan will occur after normal and appropriate withholding for all Federal, State and other applicable taxes and obligations and after voluntary withholdings for participation in other Company benefit plans. With respect to Officers, the payroll deductions may not reduce the individual’s compensation below an amount equal to two (2) times the federal or applicable state minimum wage, whichever is higher, required to be paid each pay period. Payroll deductions for a Participant who is an Officer will commence with the first full payroll period immediately following the date the Participant submits a properly completed election form to the Company. Deductions from Fees for a Participant who is a Director will commence on the first day on which the foregone Fees would have been paid to the Director and will apply only to Fees earned and paid after the date the Participant submits a properly completed election form to the Company.

 

5.2 Duration of Elections. An Eligible Individual’s election form will remain in effect unless amended or terminated as provided in Section 5.3.

 

5.3 Amendment or Termination of Elections.

 

(i) A Participant may terminate his or her participation in the Plan at any time by providing notice of termination to the Company in a manner and pursuant to such procedures as the Committee may determine from time to time. A Participant’s election to terminate participation shall be effective as soon as administratively practicable following the Company’s receipt of the Participant’s notice of termination, provided that the Participant has certified that his or her decision to terminate participation is made in good faith and in full compliance with both the letter and spirit of all federal and state securities laws.

 

(ii) A Participant may increase or decrease the rate of his or her payroll deductions or Fee deductions, as applicable, by submitting a new election form to the Company at any time during a Trading Window, provided that the Participant does not otherwise possess material non-public information concerning the Company (within the meaning of the 1934 Act) at the time of his or her new election. Notwithstanding the foregoing, a Participant may not decrease the rate of his or her deductions below $500 with respect to each Officer payroll date or $500 with respect to each Director Fee payment date, as applicable. Provided that a Participant has properly submitted a completed election form, the change in payroll or Fee deduction rate will be effective as soon as administratively practicable following the date the Company receives the Participant’s new election form and will apply only to compensation or Fees earned after such date.

 

6. Purchase and Delivery of Shares.

 

6.1 On, or as soon as administratively practicable following, each payroll date or, in the case of Directors, each date on which Fees would otherwise be paid, each Participant’s aggregate deductions for the applicable period will be converted into fully vested Shares based on the Fair Market Value of a Share on such date. No fractional Shares will be purchased. Any payroll or Fee deductions which are not sufficient to purchase a full Share will be paid to the Participant in cash.

 

6.2 Shares paid out to a Participant under the Plan will be delivered electronically to the Participant’s broker as indicated in the Participant’s election form or, if not specified, to the Participant’s broker(s) of record as listed in the Company’s records at the time of delivery.

 

7. Amendment or Termination of the Plan. The Committee may, at any time and for any reason, amend or terminate the Plan without regard to whether the amendment or termination may adversely affect any Participant. Without limiting 

 

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the generality of the foregoing, such amendment or termination may be effective immediately notwithstanding that (i) elections have been made and are then in effect and (ii) deductions have been withheld but not yet applied to the purchase of Shares, in which case such deductions will be paid to the Participant in cash as soon as administratively practicable. No amendment or modification will require the consent of any Participants.

 

8. No Guarantee of Future Service. Neither the establishment or maintenance of the Plan, the purchase of Shares, nor any action of the Company or the Committee, will be held or construed to confer upon any Officer or Director any right to be continued as an employee or Director of the Company, as applicable, nor, upon dismissal, any right or interest in any specific assets of the Company other than as provided in the Plan. The Company expressly reserves the right to discharge any Officer at any time, with or without cause.

 

9. Tax Reporting. The participant will be responsible for reporting and paying any and all federal, state, or any other tax liabilities that arise from selling or otherwise disposing of the Shares. At any time, the Company may, but will not be obligated to, withhold from the Participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to the issuance, sale or disposition of Shares by the Participant.

 

10. Choice of Law. All questions concerning the construction, validity, and interpretation of the Plan will be governed by the law of the State of California, exclusive of the conflict of laws provisions thereof.

 

11. Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

12. Requirements of Law. The Company shall not be required to issue any certificate or certificates for Shares hereunder prior to fulfillment of all the following conditions: (a) the admission of such Shares to listing on all stock exchanges on which such class of stock is then listed; (b) the completion of any registration or other qualification of such Shares under any U.S. state or federal law or under the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body, which the Committee shall, in its absolute discretion, deem necessary or advisable; and (c) the obtaining of any approval or other clearance from any U.S. state or federal governmental agency, which the Committee shall, in its absolute discretion, determine to be necessary or advisable.

 

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13. Headings. The headings in the Plan are for convenience only and will not be deemed to constitute a part hereof nor to affect the meaning hereof.

 

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