Document:

Exhibit 4.2

 

THIS NOTE AND ANY SECURITIES INTO WHICH IT MAY BE CONVERTED
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR SUCH
LAWS COVERING THE TRANSFER OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

APPLIED ENERGETICS, INC.

 

10% PROMISSORY NOTE

 

	Principal Amount: $	Issue Date: __________________

 

For value received, Applied Energetics,
Inc., a Delaware corporation (the “Company”), promises to pay to ___________________ (“Holder”),
or Holder’s registered assigns, (“Note”), the principal sum of $_______________, or such lesser amount
which is the outstanding principal amount of this Note, together with interest from the Issue Date on the unpaid principal balance
at a rate of 10% per annum.

 

The unpaid balance of this Note shall bear
interest at a per annum rate equal to ten percent (10%) (“Interest Rate”). Except as otherwise provided herein,
all payments in respect of this Note shall be made in cash, certified or cashier’s check, or by wire transfer to such account
as the Payee shall direct, in immediately available funds and in lawful currency of the United States of America; except that,
at its option, the Company may elect to convert the principal and interest due on this Note as of the Maturity Date into shares
of its common stock, par value, $0.001 per share (“Common Stock”) in accordance with the terms set forth herein.

 

This Note is issued pursuant a certain Securities
Purchase Agreement, of even date herewith, by and between Company and the Holder. This Note is one of a series of promissory notes
of the Company (collectively, “Notes”), all of like tenor, except as to the name of the holder, issue date,
principal amount and other non-material details. The Notes are limited to an aggregate principal amount of $5,000,000.

 

The following is a statement of the rights
of the holder of this Note and the conditions to which this Note is subject and to which Holder, by the acceptance of this Note,
agrees:

 

1. 
Maturity Date. This Note matures on July 15, 2021 (the “Maturity Date”).
This Note may not be prepaid without the consent of the Company.

 

2. 
Repayment of Note Principal and Interest; Option to Convert.

 

(a) 
On the Maturity Date, the Company shall pay to the Holder of this Note, or its registered assigns, all principal and interest
then due hereunder. Thereafter, the Company will be forever released from all its obligations and liabilities under this Note.
At any time following October 15, 2020, the Company may, in its sole discretion and without penalty, prepay all or any portion
of the principal and interest due under this Note as of the date of such prepayment. The amount of such prepayment shall be payable,
at the Holder’s option, in cash or in shares of Common Stock at a conversion price of $0.30 per share. The Company shall
notify the Holder of its election to prepay the principal and interest due hereunder, and upon receipt of such notice, the Holder
shall have five (5) business days in which to notify the Company of the Holder’s election to receive such prepayment in cash
or in Common Stock. If the Company has not received such notice from the Holder within such five-day period, it may prepay this
Note in cash or Common Stock, at its option.

 

     

     

    

 

(b) 
Notwithstanding the foregoing, as of the Maturity Date, the Company may elect to convert any balance of principal and interest
due hereunder into shares of Common Stock at a conversion price of $0.15 per share.

 

(c) 
In the event of a conversion of this Note or prepayment in Common Stock, upon receipt by the Company of the surrendered Note, the
Company shall instruct its transfer agent to issue and deliver the shares of Common Stock to the Holder at the Holder’s last
known address on the books and records of the Company or at such other address as the Holder may instruct the Company in writing.

 

3. 
Conversion by Holder Prior to Maturity Date. At any time from October 15, 2020 until the
Maturity Date, the Holder shall have the right to convert any amount of principal and interest then due and payable hereunder into
shares of Common Stock at a conversion price of $0.30 per share, subject to appropriate pro rata adjustment if, at any time when
this Note is issued and outstanding and prior to conversion of all principal and interest hereunder, there shall be any recapitalization,
stock split or other similar event.

 

4. 
Surrender of Note. As promptly as practicable after payment of principal and interest
due under this Note, Holder shall surrender this Note to the Company at the principal office of the Company or such other place
as the Company may designate.

 

 

5. 
Events of Default; Remedies. Each of the following events constitutes an “Event
of Default” under this Note:

 

(a) 
Commencement by the Company of any voluntary case, proceeding, or other action under any existing or future law of any jurisdiction,
domestic or foreign, relating to bankruptcy, insolvency, reorganization, or relief of debtors, seeking to have an order for relief
entered with respect to the Company, or seeking to adjudicate the Company as bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution, composition, or other relief with respect to the Company or its
debts, or seeking appointment of a receiver, trustee, custodian, or other similar official for the Company or for all or any substantial
part of the Company assets, or if the Company makes a general assignment for the benefit of its creditors;

 

(b) 
Commencement against the Company of any involuntary case, proceeding, or other action of a nature referred to in section 4(a)(1)
if such involuntary case or proceeding remains undismissed and unstayed for a period of 90 consecutive days

 

    2

     

    

 

(c) 
The Company's failure to comply with any covenants in this Note, provided the Company has received written notice of such failure
and such failure continues for a period of at least 30 days after such notice is received; or

 

(d) 
The Company’s failure to repay this Note when such repayment is required hereunder, provided the Company has received written
notice of such failure and such failure continues for a period of at least thirty days after such notice is received.

 

6. 
Representations and Warranties of Holder. Holder represents and warrants to the Company
as follows: 

 

(a) 
Holder is acquiring this Note for Holder's own account for investment only and not with a view to distribution or resale of this
Note or any underlying securities.

 

(b) 
Holder is an “accredited investor” as such term is defined in Rule 501 under the Securities Act of 1933, as amended
(the “Securities Act”).

 

(c) 
Holder understands that the Notes are being issued to Holder under an exemption from the registration requirements of the Securities
Act and, accordingly, must be held indefinitely by Holder unless later transferred in transactions that are either registered under
the Securities Act or exempt from registration.

 

(d) 
Holder understands that the Company is under no obligation to register the Notes or underlying shares under the Securities Act
or to file for or comply with an exemption from registration, and recognizes that exemptions from registration, in any case, are
limited and may not be available when Holder may want to sell, transfer, or otherwise dispose of the Notes or underlying shares.

 

(e) 
Holder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks
of an investment in the Notes, and Holder is able to incur a complete loss of Holder's investment and bear the risk of such a loss
for an indefinite period of time. Holder acknowledges that the Notes are a risky and speculative investment.

 

7. 
Representations and Warranties of Company. The Company represents and warrants to Holder
as follows:

 

(a) 
The Company is duly organized, validly existing, and in good standing in the State of Delaware. The Company has all requisite power
and authority to issue the Notes and to carry out the transactions contemplated by the Notes.

 

(b) 
The Notes constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms,
subject to applicable bankruptcy, insolvency, and other laws affecting the rights of creditors generally. The execution and delivery
of the Notes do not (A) violate any law, court order, or other order binding on the Company or require the approval of any governmental
entity, or (B) violate or require the approval of any third-party pursuant to any contract to which the Company is a party or is
subject, or by which the Company or any of its assets is bound, or conflict with or constitute a default thereunder.

 

    3

     

    

 

(c) 
Except as disclosed in the Company’s reports on file with the Securities and Exchange Commission, there are no actions, suits,
proceedings, or investigations pending against the Company or its properties before any court or governmental entity.

 

8. 
Legend. The Company shall cause all certificates representing Shares issued in connection
with the Notes to be endorsed with the following legend: 

 

“THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED, PLEDGED, OR HYPOTHECATED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR SUCH LAWS COVERING THE TRANSFER OR AN OPINION OF COUNSEL SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. THE SECURITIES EVIDENCED HEREBY ARE SUBJECT TO THE TERMS OF A STOCKHOLDERS
AGREEMENT (OR SIMILAR AGREEMENT) BETWEEN THE COMPANY AND THE STOCKHOLDERS OF THE COMPANY IDENTIFIED THEREIN, INCLUDING CERTAIN
RESTRICTIONS ON TRANSFER. A COPY OF THIS AGREEMENT IS ON FILE WITH THE ISSUER AND IS AVAILABLE UPON REQUEST OF THE HOLDER OF THIS
CERTIFICATE.” 

 

9. 
Loss, Stolen, or Mutilated Note. Upon receipt of evidence satisfactory to the Company,
in its sole discretion, of the loss, theft, destruction, or mutilation of this Note, and in case of any such loss, theft, or destruction,
upon delivery of any customary indemnity agreement reasonably satisfactory to the Company, or in any case of any such mutilation,
upon surrender and cancellation of this Note, the Company at its expense will, within twenty (20) days, issue and deliver a new
Note of like tenor in an amount equal to the amount of such lost, stolen, destroyed, or mutilated Note.

 

10. 
Registration Rights. The Company shall include for registration the maximum number of
shares of Common Stock issuable upon conversion of the Notes, in any registration statement which the Company files with the SEC,
on any form available for such registration, on or after October 15, 2020. If the Company has not included shares underlying Notes
in this Offering in a registration statement prior to December 15, 2020, it will use its best efforts to file such a registration
statement, including all shares of Common Stock underlying the Notes, on or prior to December 31, 2020.

 

    4

     

    

 

11. 
Notices. (a) Any notice or demand required or permitted to be given by Holder or the Company
under any of the provisions of this Note will be deemed to have been duly given for all purposes if (1) in writing and delivered
by hand against receipt, or sent by certified or registered mail, postage prepaid, return receipt requested, or (2) sent by electronic
means and followed by a copy delivered or sent in the manner provided in clause (1) above, to such party at the address for such
party as stated below or such other address as any party hereto may at any time, or from time to time, direct by notice given to
the other party in accordance with this section 9. The date of giving any such notice or demand will be the earlier of the date
of actual receipt, or five business days after such notice or demand is sent, or, if sent in accordance with clause (2), the business
day next following the day such notice or demand is actually transmitted. Each party’s address for notice is as follows:

 

	 	The Company:	Applied Energetics, Inc.

2480 W Ruthrauff Road, Suite 140Q

Tucson, AZ 85705

Attention: Bradford T. Adamczyk,
Chairman

 

		Holder:	to Holder’s address stated on the signature page
to this Note.

 

12. 
Note Holder Not a Stockholder. This Note does not confer upon Holder any right to vote
or to consent to or to receive notice as a stockholder of the Company, as such, in respect of any matters whatsoever, or any other
rights or liabilities as a stockholder of the Company.

 

13. 
Governing Law; Venue. The laws of the State of Delaware govern this Note and all maters
arising out of it, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware
or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. With
respect to any disputes arising out of or related to this Note, Holder consents to the exclusive jurisdiction of, and venue in,
the state and federal counts in Delaware.

 

14. 
Severability. If any provision of this Note becomes or is declared by a court of competent
jurisdiction to be illegal, unenforceable, or void, portions of such provision, or such provision in its entirety, to the extent
necessary, will be severed from this Note, and such court will replace such illegal, void, or unenforceable provision of this Note
with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business, and other purposes
of the illegal, void, or unenforceable provision. The other provisions of this Note will be enforceable in accordance with their
terms.

 

15. 
Successors and Assigns; Transferability. This Note will bind and inure to the benefit
of the Company and Holder and their respective successors and assigns. Holder shall not transfer this Note without the Company’s
prior written consent. Subject to the provisions of Section 2(b), the Company may assign this Note without the consent of the holder
to a successor entity of the Company, whether by merger, a sale of all or substantially all the Company’s assets, the sale
of its equity, or otherwise.

 

16. 
Entire agreement. This Note constitutes the entire understanding between the Company and
Holder with respect to the subject matter hereof.

 

17. 
Waiver and Amendment. Any term of this Note may be amended, waived, or modified with the
prior written consent of the Company.

 

[signature page follows]

 

    5

     

    

 

The Company and Holder are signing this
Promissory Note as of the Issue Date.

 

	              	COMPANY
	 	 	 
	 	Applied Energetics, Inc.
	 	 	 
	 	By:	 
	 	 	Name: Gregory J. Quarles
	 	 	Title: Chief Executive Officer

 

	 	HOLDER
	 	 	 
	Principal Amount: $__________	 
	 	 	 
	Issue Date: __________________	By:	                    
	 	 	 
	 	Name:  	 

 

	 	Title (if applicable):   	 
	 	 	 

	 	Address:
	 	 	 
	 	 
	 	Email:	         
	 	 	 
	 	Phone: 	 

 

 

6Document

Exhibit 10.14

Grantee:      
Shares:      

MATRIX SERVICE COMPANY
AWARD AGREEMENT

[Date]

«Grantee»
«Address1»
«Address2»
«City», «State» «PostalCode»

Dear «FirstName»:

1. Award.  The awards set forth in this Award Agreement (the "Award Agreement") are subject to your acceptance of and agreement to all of the applicable terms, conditions, and restrictions described in the 2018 Stock and Incentive Compensation Plan (the "Plan"), of Matrix Service Company, a Delaware corporation (the "Company") a copy of which is on file with, and may be obtained from, the Secretary of the Company, and to your acceptance of and agreement to the further terms, conditions, and restrictions described in this Award Agreement.  To the extent that any provision of this Award Agreement conflicts with the expressly applicable terms of the Plan, it is hereby acknowledged and agreed that those terms of the Plan shall control and, if necessary, the applicable provisions of this Award Agreement shall be hereby deemed amended so as to carry out the purpose and intent of the Plan.

2. Restricted Stock Units Award.  

(a) Restricted Stock Units Award.  The Company hereby grants to you an aggregate of up to «Shares» restricted stock units (individually, an "RSU," and collectively, "RSUs") as more specifically set forth in Section 2(e).  This grant of RSUs is comprised of up to [Shares] "Stock-Based RSUs" and up to [Shares] "Cash-Based RSUs."  Each Stock-Based RSU entitles you to receive one share of common stock, par value $.01 per share, of the Company (the "Shares") at such time as the restrictions described in Section 2(d)(ii) lapse as described in Section 2(e)(i).  Each Cash-Based RSU entitles you to receive an amount of cash equal to the value of one Share based on the closing price of the Shares at such time as the restrictions described in Section 2(d)(ii) lapse as described in Section 2(e)(i).  

(b) Form of Restricted Stock; Possession of Certificates.  The Company shall issue the Shares you become entitled to receive hereunder by book-entry registration or by issuance of a certificate or certificates for the Shares in your name as soon as practicable after the restrictions in Section 2(d)(ii) lapse as described in Section 2(e).  In the event the Company issues a certificate or certificates for the Shares, such certificates shall be subject to such stop transfer orders and other restrictions as the committee of the Board of Directors that administers the Plan may deem necessary or advisable under the Plan and rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are then listed, and any applicable foreign, federal or state securities laws.  

(c) Stockholder Rights Prior to Issuance of Shares.  Neither you nor any of your beneficiaries shall be deemed to have any voting rights, rights to receive dividends or other rights as a stockholder of the Company with respect to any Shares covered by the RSUs until the date of book-entry registration or issuance by the Company of a certificate to you for such Shares. 

(d) Restrictions.

(i) Your ownership of the RSUs shall be subject to the restrictions set forth in subsection (ii) of this Section 2(d) until such restrictions lapse pursuant to the terms of Section 2(e).

(ii) The restrictions referred to in subsection (i) of this Section 2(d) are as follows:

(A) At the time of your termination of employment with the Company or an Affiliate, other than a termination of employment that occurs as a result of an event described in any of Subsections (ii) through (v) of Section 2(e), you shall forfeit the RSUs to the Company and all of your rights thereto shall terminate without any payment of consideration by the Company.  

(B) You may not sell, assign, transfer or otherwise dispose of any RSUs, or any rights under the RSUs.  No RSU and no rights under any such RSU may be pledged, alienated, attached or otherwise encumbered, other than by will or the laws of descent and distribution.  If you or anyone claiming under or through you attempts to violate this Section 2(d)(ii)(B), such attempted violation shall be null and void and without effect, and all of the Company's obligations hereunder shall terminate.

(e) Lapse of Restrictions.

(i) The restrictions described in Section 2(d)(ii) shall lapse with respect to the RSUs in four equal installments of 25 percent each on each of the first, second, third and fourth anniversaries of the date of this Award Agreement, such that the restrictions set forth in Section 2(d)(ii) shall have lapsed with respect to 100 percent of the RSUs on the fourth anniversary of the date of this Award Agreement.

(ii) Notwithstanding the provisions of subsection (i) of this Section 2(e), the restrictions described in Section 2(d)(ii) shall lapse with respect to the RSUs upon the occurrence of your death or "Disability."

The term "Disability" shall mean your inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than 12 months.

(iii) Notwithstanding the provisions of subsection (i) of this Section 2(e), upon the occurrence of your "Retirement," the restrictions described in Section 2(d)(ii) automatically and with no exercise of discretion of the Committee shall lapse with respect to all of your remaining RSUs and be settled upon the earliest to occur of (A) the normal lapsing schedule set forth in Section 2(e)(i) hereof and (B) your death.  Notwithstanding any other provision of this subsection (iii), in the event that you Retire within one year of the date of this Award Agreement, the restrictions will not lapse on any portion of the RSUs represented by this Award Agreement and all such remaining RSUs shall immediately be forfeited.    

The term "Retirement" or "Retire" shall mean your voluntary "Separation from Service" (as defined in Code Section 409A), on or after the date (A) on which you attain age 65 or (B) on which you attain age 60 and have completed at least ten years of continuous service as an employee of the Company or an Affiliate.

(iv) Notwithstanding the provisions of subsection (i) of this Section 2(e), in the event of a Change of Control of the Company, this Award Agreement may be continued or assumed by the continuing or successor (as the case may be) organization (the "Successor"), or the Successor may substitute an equivalent award.  With respect to any RSUs that are continued, assumed or substituted for in accordance with this subsection (iv), the restrictions described in Section 2(d)(ii) shall continue to lapse with respect to such RSUs (as the same may be adjusted in accordance with this subsection (iv)) as set forth in Section 2(e)(i) hereof; provided, however, in the event you incur a voluntary Separation from Service after suffering an "Adverse Event" or incur an involuntary Separation from Service not for "Cause," in connection with a Change of Control or at any time ending with the earlier to occur of the second anniversary of the Change of Control or the Measurement Date, the restrictions described in Section 2(d)(ii) shall immediately lapse with respect to the RSUs. 

The term "Adverse Event" shall as to any Participant mean:

(A) a material reduction of the Participant’s authorities, duties, or responsibilities with the Company;

(B) a material reduction of the Participant’s annual salary or a material reduction in the Participant’s target annual incentive compensation, in each case other than a reduction which is applicable to all employees in the same salary grade as the Participant; or

(C) a transfer of the Participant’s primary workplace by more than thirty-five (35) miles.

If a Participant purports to terminate his or her employment after suffering an Adverse Event, the Participant must give the Company written notice of his or her intent to terminate within sixty (60) calendar days of the occurrence of the event that allegedly constitutes an Adverse Event. The Company shall have a right to cure the event alleged to constitute an Adverse Event for a period of thirty (30) calendar days after notice from the Participant of his or her intention to terminate.

The term "Cause" shall mean your theft of company property, embezzlement or dishonesty that results in harm to the Company or any Successor; your continued gross or willful neglect of your job responsibilities after receiving written warnings regarding such neglect from the Company or any Successor; your conviction of a felony or pleading nolo contender to a felony charged under state or federal law; or your willful violation of Company policy or the policies of any Successor.

(v) Notwithstanding the provisions of subsection (i) of this Section 2(e), in the event a Change of Control of the Company occurs and this Award Agreement is not continued or assumed by the Successor and the Successor does not substitute an equivalent award, the restrictions described in Section 2(d)(ii) shall immediately lapse with respect to the RSUs.  

(vi) On the date of the lapse of the restrictions in accordance with this Section 2(e), or in any event, no later than the earlier of ninety (90) days after such date or two and one half months following the end of the calendar year in which the restrictions lapsed in accordance with Section 2(e), the Company will make a book-entry registration or will issue you a certificate as provided in Section 2(b) of this Award Agreement for the Shares covered by such Stock-Settled RSUs in redemption of such RSUs and will pay you by check in redemption of the Shares covered by such Cash-Settled RSUs.    

3. Agreement with Respect to Taxes; Share Withholding.  

(a) You agree that (1) you will pay to the Company or an Affiliate, as the case may be, in cash, or make arrangements satisfactory to the Company or such Affiliate regarding the payment of any taxes of any kind required by law to be withheld by the Company or any of its Affiliates with respect to the  RSUs, the and/or the Shares and (2) the Company or any of its Affiliates shall, to the extent permitted by law, have the right to deduct from any payments of any kind otherwise due to you any taxes of any kind required by law to be withheld with respect to the RSUs and the Shares.

(b) With respect to withholding required upon the lapse of restrictions or upon any other taxable event arising as a result of the RSUs awarded or the issuance of Shares to you, you may elect, subject to the approval of the Committee, to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax which could be withheld on the transaction (or such other amount that will not cause adverse accounting consequences for the Company and is permitted under the Plan and applicable withholding rules promulgated by the Internal Revenue Service or other applicable governmental entity). All such elections shall be irrevocable, made in writing, signed by you, and shall be subject to any restrictions or limitations that such Committee, in its sole discretion, deems appropriate.

4. Adjustment of Shares.  The number of Shares subject to the RSUs awarded to you under this Award Agreement may be adjusted as provided in the Plan.  

5. Agreement With Respect to Securities Matters.  You agree that you will not sell or otherwise transfer any Shares received pursuant to this Award Agreement except pursuant to an effective registration statement under the U.S. Securities Act of 1933, as amended, or pursuant to an applicable exemption from such registration.  Unless a registration statement relating to the Shares issuable upon the lapse of the restrictions on the RSUs pursuant to this Award Agreement is in effect at the time of issuance of such Shares, the certificate(s) for the Shares shall contain the following legend:  

The securities evidenced by this certificate have not been registered under the Securities Act of 1933 or any other securities laws.  These securities have been acquired for investment and may not be sold or transferred for value in the absence of an effective registration of them under the U.S. Securities Act of 1933 and any other applicable securities laws, or receipt by the Company of an opinion of counsel or other evidence acceptable to the Company that such registration is not required under such acts.  

6. Forfeiture.  You agree that in the event you violate the confidentiality, non-competition, non-solicitation or non-disparagement provisions of any agreement between you and the Company or any Affiliate, or any plan of the Company or any Affiliate in which you participate, including without limitation, the non-solicitation provisions of Section 7 below, you will forfeit in their entirety the  RSUs, and all of your rights thereto shall terminate without any payment of consideration by the Company. 

7. Non-Solicitation.  

(a) Non-Solicitation of Employees.  During the period beginning on the date of this Award Agreement and ending on the second anniversary of the date of your termination of employment with the Company or an Affiliate, regardless of the reason for your termination of employment, you shall not, directly, or indirectly by assisting others: (i) cause or attempt to cause or encourage any employee of the Company or an Affiliate to terminate his or her relationship with the Company or an Affiliate or (ii) solicit the employment or engagement as a consultant or adviser, of any employee of the Company or an Affiliate or any former employee of the Company or an Affiliate who left the employ of the Company or Affiliate within two years following your termination of employment with the Company or an Affiliate.

(b) Reasonableness of Restriction.  You agree and acknowledge that the above non-solicitation covenant is reasonable in the scope of activities restricted, the geographic area covered by the restriction and the duration of the restriction, and is necessary in that it protects the legitimate business interests of the Company and its Affiliates in its confidential information, its proprietary work, and its relationships with its employees, customers, suppliers and agents and that it does not unreasonably impair your ability to earn a livelihood or to support your dependants.

(c) Irreparable Harm; Injunctive Relief.  You agree and acknowledge that a violation by you of the non-solicitation covenant contained herein will result in immediate and irreparable harm to the Company for which there is no adequate remedy at law.  You hereby agree that the Company will be entitled, in addition to any remedies it might have under this Award Agreement or at law, to injunctive and other equitable relief to prevent or curtail any threatened or actual breach of this Award Agreement by you, without the posting of bond or other security.

(d) Extension of Covenant.  During any breach of the non-solicitation provisions of this Award Agreement, the period of restraint set forth herein shall be automatically tolled and suspended for the amount of time that the violation continues.

(e) Survival of Covenants.  Your obligations pursuant to this Section 7 shall survive the termination of this Award Agreement and the termination of your employment with the Company or an Affiliate.

(f) Attorneys' Fees.  You agree to pay the Company any attorneys' fees and costs which the Company incurs in enforcing, to any extent, the provisions of this Section 7, whether or not litigation is actually commenced, and including any appeal.

8. Compliance with 409A.  The Company intends that this Award Agreement and the Plan either (a) comply with Section 409A and guidance thereunder or (b) be excepted from the provisions of Section 409A. Accordingly, the Company reserves the right and you agree that the Company shall have the right, without your consent and without prior notice to you, to amend either or both this Award Agreement and the Plan to cause this Award Agreement and the Plan to be so compliant or so excepted and to take such other actions under the Plan and this Award Agreement to achieve such compliance or exception.

9. Certain Definitions.  Capitalized terms used in this Award Agreement and not otherwise defined herein shall have the respective meanings provided in the Plan.

10. Designation of Beneficiary.  Your beneficiary for receipt of any payment made under this Award Agreement in the event of your death shall be the person(s) designated as your beneficiary(ies) on a form prescribed by the Company.  If no beneficiary is designated, upon your death, payment shall be made to your estate.  

[Signature Page to Follow]

If you accept this Award Agreement and agree to the foregoing terms and conditions, please so confirm by signing and returning the duplicate copy of this Award Agreement enclosed for that purpose.

MATRIX SERVICE COMPANY

By:                                                                            

Name:                                                                       

Title:                                                                         

The foregoing Award Agreement is accepted by me as of                                                  , and I hereby agree to the terms, conditions, and restrictions set forth above and in the Plan.

                                                                                  
«Grantee»

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