Document:

ex_110849.htm

Exhibit 10.3

 

TAPINATOR, INC.

 

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

THIS RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”), is effective as of [__________], is between Tapinator, Inc., a Delaware corporation (the “Company”), and the individual identified on the signature page hereof (the “Participant”).

 

BACKGROUND 

 

A. The Participant is currently a [member of the Company’s Board of Directors].

 

B. The Company desires to (i) provide the Participant with an incentive to remain as a member of the Company’s Board of Directors, and (ii) increase the Participant’s interest in the success of the Company by granting restricted stock units (the “Restricted Stock Units”) to the Participant.

 

C. The grant of the Restricted Stock Units is (i) made subject to the terms and conditions of this Agreement, and (ii) not employment compensation nor an employment right.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the covenants and agreements contained in this Agreement, the parties hereto, intending to be legally bound, agree as follows:

 

1. Grant of Restricted Stock Units. Subject to the provisions of this Agreement, the Company hereby grants to the Participant the number of Restricted Stock Units specified on the signature page of this Agreement. The Company shall credit to a bookkeeping account (the “Account”) maintained by the Company, or a third party on behalf of the Company, for the Participant’s benefit the Restricted Stock Units, each of which shall be deemed to be the equivalent of one share of the Company’s common stock, par value $.001 per share (each, a “Share”).

 

3. Terms and Conditions. All of the Restricted Stock Units shall initially be unvested.

 

(a) Vesting. [Provided Participant remains a [member of the Board of Directors of the Company], the Shares shall [begin vesting on the eighteenth month following the date of the grant and shall vest in ratably over the following eighteen months for a total vesting schedule of thirty-six months] (the “Vesting Schedule”). In the event of a Corporate Transaction (as defined in the Company’s 2015 Equity Incentive Plan), the Restricted Stock Units/Shares not previously vested shall immediately become vested.

 

(b) Restrictions on Transfer. Until the applicable vesting date under the Vesting Schedule, no transfer of the Restricted Stock Units or any of the Participant’s rights with respect to the Restricted Stock Units, whether voluntary or involuntary, by operation of law or otherwise, shall be permitted. Unless the Company’s Board of Directors determines otherwise, upon any attempt to transfer any Restricted Stock Units or any rights in respect of the Restricted Stock Units before the applicable vesting date under the Vesting Schedule.

 

 

 

 

(c) Forfeiture. Upon termination of the Participant’s membership on the Company’s Board of Directors, the Participant shall forfeit any and all Restricted Stock Units which have not vested as of the date of such termination and such units shall revert to the Company without consideration of any kind.

 

4. Taxes. The Participant acknowledges that the tax laws and regulations applicable to the Restricted Stock Units and the disposition of the shares following the settlement of Restricted Stock Units are complex and subject to change.

 

5. Securities Laws Requirements. The Company shall not be obligated to transfer any shares following the settlement of Restricted Stock Units to the Participant free of a restrictive legend if such transfer, in the opinion of counsel for the Company, would violate the Securities Act of 1933, as amended (the “Securities Act”) (or any other federal or state statutes having similar requirements as may be in effect at that time).

 

6. No Obligation to Register. The Company shall be under no obligation to register any shares as a result of the settlement of the Restricted Stock Units pursuant to the Securities Act or any other federal or state securities laws.

 

7. Protections Against Violations of Agreement. No purported sale, assignment, mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation of a security interest in or lien on, any of the Restricted Stock Units by any holder thereof in violation of the provisions of this Units Agreement or the Certificate of Incorporation or the Bylaws of the Company, will be valid, and the Company will not transfer any shares resulting from the settlement of Restricted Stock Units on its books nor will any of such shares be entitled to vote, nor will any dividends be paid thereon, unless and until there has been full compliance with such provisions to the satisfaction of the Company. The foregoing restrictions are in addition to and not in lieu of any other remedies, legal or equitable, available to enforce such provisions.

 

8. Rights as a Stockholder. The Participant shall not possess any rights of a stockholder underlying the Restricted Stock Units until the Restricted Stock Units have settled in accordance with the provisions of this Agreement.

 

9. Survival of Terms. This Agreement shall apply to and bind the Participant and the Company and their respective permitted assignees and transferees, heirs, legatees, executors, administrators and legal successors.

 

10. Notices. All notices and other communications provided for herein shall be in writing and shall be delivered by hand or sent by certified or registered mail, return receipt requested, postage prepaid, addressed, if to the Participant, to the Participant’s attention at the mailing address set forth at the foot of this Agreement (or to such other address as the Participant shall have specified to the Company in writing) and, if to the Company, to the Company’s then current corporate offices to the attention of the Chief Financial Officer. All such notices shall be conclusively deemed to be received and shall be effective, if sent by hand delivery, upon receipt, or if sent by registered or certified mail, on the fifth day after the day on which such notice is mailed.

 

 

 

 

11. Waiver. The waiver by either party of compliance with any provision of this Agreement by the other party shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement.

 

12. Authority of the Administrator. The Company’s Board of Directors or Compensation Committee shall have full authority to interpret and construe the terms of this Agreement. The determination of the administrator as to any such matter of interpretation or construction shall be final, binding and conclusive.

 

13. Representations. The Participant has reviewed with his own tax advisors the applicable tax (U.S., foreign, state, and local) consequences of the transactions contemplated by this Agreement. The Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Participant understands that he (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by this Agreement.

 

14. Investment Representation. The Participant hereby represents and warrants to the Company that the Participant, by reason of the Participant’s business or financial experience (or the business or financial experience of the Participant’s professional advisors who are unaffiliated with and who are not compensated by the Company or any affiliate or selling agent of the Company, directly or indirectly), has the capacity to protect the Participant’s own interests in connection with the transactions contemplated under this Agreement.

 

15. Entire Agreement; Governing Law. This Agreement and the other related agreements expressly referred to herein set forth the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings relating to the subject matter hereof. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same agreement. The headings of sections and subsections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of this Agreement. This Agreement shall be governed by, and construed in accordance with, the laws of Delaware.

 

16. Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable, or enforceable only if modified, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties hereto with any such modification (if any) to become a part hereof and treated as though contained in this original Agreement. Moreover, if one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to scope, activity, subject or otherwise so as to be unenforceable, in lieu of severing such unenforceable provision, such provision or provisions shall be construed by the appropriate judicial body by limiting or reducing it or them, so as to be enforceable to the maximum extent compatible with the applicable law as it shall then appear, and such determination by such judicial body shall not affect the enforceability of such provisions or provisions in any other jurisdiction.

 

17. Amendments; Construction. The Company may amend the terms of this Agreement prospectively or retroactively at any time, but no such amendment shall impair the rights of the Participant hereunder without his or her consent. Headings to Sections of this Agreement are intended for convenience of reference only, are not part of this Restricted Stock Units and shall have no effect on the interpretation hereof.

 

 

 

 

18. Acceptance. The Participant hereby acknowledges receipt of a copy of this Agreement. The Participant has read and understand the terms and provision thereof, and accepts the shares of Restricted Stock Units subject to all the terms and conditions of this Agreement. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under this Agreement.

 

19. Miscellaneous.

 

(a) No Rights to Grants or Continued Employment. The Participant acknowledges that the award granted under this Agreement is not employment compensation nor is it an employment right, and is being granted at the sole discretion of the Company’s Board of Directors or Compensation Committee. Neither this Agreement, nor any action taken or omitted to be taken hereunder or thereunder, shall be deemed to create or confer on the Participant any right to be retained as an employee of the Company or any subsidiary or other affiliate thereof, or to interfere with or to limit in any way the right of the Company or any affiliate or subsidiary thereof to terminate the employment of the Participant at any time.

 

(b) No Restriction on Right of Company to Effect Corporate Changes. This Agreement shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred, or prior preference stocks whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of the assets or business of the Company, or any other corporate act or proceeding, whether of a similar character or otherwise.

 

(c) Assignment. The Company shall have the right to assign any of its rights and to delegate any of its duties under this Agreement to any of its affiliates.

 

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

 

IN WITNESS WHEREOF, this Agreement is effective as of the date first referenced above.

 

	 	 	 	 
	
			TAPINATOR, INC.

				 
	
			 

				 	 
	
			By:

				
			 

				
			 

				 
	
			Name:

				
			 

				 	 
	
			Title:

				
			 

				 	 
	 	 
	
			PARTICIPANT

				 
	 	 
	
			 

				 
	
			Name:

				 	 	 
	
			Address:    

				
			 

				 	 
	 	
			 

				 	 

 

Social Security No: ____________________

 

Date of Grant: February [__], 2018

 

Number of Shares of Restricted Stock Units: [______]ex_110863.htm

Exhibit 10.4

 

GAME ENGINE AND GAME-SPECIFIC DEVELOPMENT AGREEMENT

 

This Game Engine and Game-Specific Development Agreement (this “Agreement”) is entered into as of June 17, 2014, by and between Tapinator, Inc., a public Delaware corporation (the “Company”), and Khurram Samad (“KS”).

 

WHEREAS, the Company is the successor company of Tapinator LLC, a former New York limited liability company that was merged into the Company pursuant to a Securities Exchange Agreement dated June 16, 2014; and

 

WHEREAS, KS owns, manages, is employed by, or otherwise has a business relationship with a company that develops mobile games (the “Samad Organization”); and

 

WHEREAS, on September 1, 2013, in exchange for a 41.67% interest in Tapinator LLC, (i) KS transferred to Tapinator LLC the ownership of the mobile games listed in Exhibit A hereto (the “Preexisting Games”), and (ii) KS assumed the roles of President and Chief Technology Officer of Tapinator LLC.

 

WHEREAS, since 2013, the Samad Organization has invested a significant portion of its resources to develop a broad gaming engine for Tapinator LLC that enables the rapid production of cost-effective, mass-appeal games (the “Gaming Engine”); and

 

WHEREAS, the Gaming Engine has/will produce, for Tapinator LLC, the mobile games listed in Exhibit B hereto (the “Pre-Public Games”), all of which will launch prior to July 1, 2014; and

 

WHEREAS, the Samad Organization’s fee for the development of the Gaming Engine, which had been paid by Tapinator LLC and shall continue to be paid by the Company, is equal to 80% of the net revenues (defined in Section 6 below) generated by the Preexisting Games and the Pre-Public Games throughout their entire lifecycles; and

 

WHEREAS, in light of the historical performance of its mobile games, as well as current trends in the mobile gaming industry with respect to the lifecycle of mobile games, the Gaming Engine is expected to produce additional mobile games for the Company over the ensuing 18 month period.

 

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NOW, THEREFORE, in consideration of the mutual promises, agreements, covenants and obligations contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

 

1.     Starting July 1, 2014, the Samad Organization shall develop new mobile games for the Company with gameplay that includes (i) driving, (ii) parking, (iii) block puzzles, (iv) tossing, (v) word puzzles, (vi) movies, (vii) television shows, (viii) songs, (ix) sketches, (x) pictures, (xi) brands, (xii) animal simulations and (xiii) shooting. With the exception of shooting games, KS and the Samad Organization shall not develop mobile games containing, or substantially similar to, the aforementioned gameplay for any entity or individual other than the Company.

 

2.     It is estimated that the cost to develop each new mobile game will be approximately $5,000, and that four (4) new mobile games will be developed each month, for a total monthly development cost to the Company of $20,000.

 

3.     At the start of each month, KS will forward to the Company a projection of the new mobile games to be developed during that month, along with each new mobile game’s expected development cost. At the end of each month, KS will forward to the Company the actual development costs incurred to produce that month’s new mobile games.

 

4.     On an ongoing basis, the Company and KS shall decide whether to produce new mobile games with gameplay and/or in categories other than those referred to in Section 1 above. Such new category games developed for the Company (the “New Category Tapinator Games”) shall be done on an exclusive basis whereby: (a) the Company shall pay the Samad Organization 100% of the costs to develop the New Category Tapinator Games, (b) the Company shall be entitled to 100% of the revenue generated by the New Category Tapinator Games, and (c) KS and the Samad Organization shall not develop mobile games containing gameplay or in the same category of the New Category Tapinator Games for any entity or individual other than the Company.

 

5.     For those new category games that the Company has decided not to produce pursuant to Section 4 above, but which are developed by Samad (the “New Category Samad Games”), the Company shall be allowed to record on its books 100% of the net revenues of the New Category Samad Games, with a corresponding expense to the Samad Organization equal to 99% of net revenues. The Company shall be entitled to keep a publishing fee of 1% of net revenues on the New Category Samad Games.

 

6.     With respect to this Agreement, net revenues shall be defined as gross revenues less any expenses incurred by the Company, including without limitation, platform fees, development, marketing and taxes, which flow through the books of the Company.

 

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7.     Payments by the Company to KS for the development of mobile games shall be made at the end of each month, provided no other payment arrangement is agreed-upon by the parties.

 

8.     KS shall save and hold the Company harmless of and from, and indemnify it against, any and all losses, liability, damages, and expenses (including reasonable attorneys' fees and expenses) the Company may incur or be obligated to pay, or for which the Company may become liable as a result of any action, claim, or proceeding against the Company relative to the Preexisting Games.

 

9.     KS’s responsibilities under the roles President and Chief Technology Officer of Tapinator LLC shall transfer to the Company, and shall be consistent with the duties and responsibilities that are customary of such roles in a business of similar size and industry as the Company. KS shall devote the amount of time necessary to carry out such responsibilities, and shall control the location where, and the means and methods by which, such responsibilities shall be completed.

 

10.   This Agreement shall continue until the consent by the parties to its dissolution.

 

11.   Confidentiality. Each party acknowledges that in the course of doing business, each party will gain access to and knowledge of trade secrets and other nonpublic, confidential and proprietary information concerning the other parties and their businesses (“Confidential Information”). Confidential Information includes, but is not limited to, all proprietary and confidential information of the parties (and any affiliate organizations), as well as their owners, including without limitation: know-how; concepts; methods; techniques; designs; drawings; specifications; computer programs, including software; support materials; information regarding business operations, strategies and plans; client, customer or supplier lists; pricing information; marketing plans or information; other records concerning finances, contracts, services or personnel; copyrights, patents and trademarks; financial information; details of contractual arrangements; information concerning existing, new and contemplated products and technologies; client contacts and identity lists; marketing analyses and strategy; all computer, handwritten, electronic files and other files; or other valuable information that is not publicly known or available.

 

During the term of this Agreement and for a period of five (5) years thereafter, no party shall copy, use or disclose the Confidential Information of any other party without the prior written consent of the other party or as reasonably required to perform its duties hereunder.

 

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Confidential Information of a party shall not include information that (a) is generally known to the public or readily ascertainable from public sources at the time of the disclosure or use thereof, other than as a result of a breach of confidentiality by the non-disclosing party or any person or entity associated with such party; (b) is independently developed by the non-disclosing party without reference to or reliance on any Confidential Information of the disclosing party; (c) is rightfully obtained by the non-disclosing party from an independent third party who has created or acquired such information lawfully and without restrictions on disclosure and without reference to or reliance on Confidential Information of the owner thereof; or (d) subsequently enters the public domain by no fault of the recipient.

 

Notwithstanding the foregoing, a party may disclose Confidential Information if, to the extent that and in the manner that it becomes legally obligated to do so pursuant to a valid and enforceable order of a court of competent jurisdiction or other governmental authority having jurisdiction, provided that the disclosing party provides the owner of the Confidential Information reasonable notice prior to disclosing in order to give such owner the opportunity to quash or appeal such order or to obtain a protective order with respect thereto.

 

The parties acknowledge that some or all of the Confidential Information derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use. The parties also acknowledge and agree that the covenants contained in this Agreement are essential to protect the goodwill and operations of parties, and that any publication or disclosure of Confidential Information to others may cause immediate and irreparable harm to the parties and that parties shall be entitled to injunctive relief or any other remedies to which it is entitled under law or equity.

 

12.     For the duration of this Agreement and for two years thereafter, KS will not, directly or indirectly, for himself or as a partner, limited partner, member (e.g., of a limited liability company), officer, director, employee, agent, associate, or consultant, work for, engage in, carry on, or permit such party’s name to be used by companies developing mobile games whose gameplay includes, or is substantially similar to (i) driving, (ii) parking, (iii) block puzzles, (iv) tossing, (v) word puzzles, (vi) movies, (vii) television shows, (viii) songs, (ix) sketches, (x) pictures, (xi) brands, (xii) animal simulations and/or the gameplay of the New Category Tapinator Games. Each party expressly acknowledges and agrees to the reasonableness and enforceability of this covenant not to compete, and that this covenant by each party is a material inducement to the Company to enter into this Agreement.

 

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13.     Before and after termination of this Agreement, the parties agree to refrain from making disparaging comments about any other party and/or its officers, directors, employees, advisors, consultants, clients, partners and/or agents, and further agrees not to take any action that would harm the other parties’ personal, business or professional reputation.

 

14.     This Agreement constitutes the entire agreement of the parties concerning the subject matter hereof. No covenants, agreements, representations or warranties of any kind have been made by any party except as specifically set forth herein. All prior and contemporaneous discussions, agreements, understandings and negotiations of the parties, oral or written, with respect to such subject matter are superseded by this Agreement. This Agreement may not be modified or amended except in writing.

 

15.     If any provision of this Agreement, or any part of any provision, is deemed invalid or unenforceable, the remainder of this Agreement shall not be affected thereby and shall be given full effect, without regard to the invalid portions.

 

16.     This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

17.     This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

18.     Facsimile transmission (including the e-mail delivery of documents in Adobe PDF format) of any signed original counterpart or retransmission of any signed facsimile transmission shall be deemed the same as the delivery of an original.

 

 

 

 

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the date first above written.

 

	
			KHURRAM SAMAD

				 	
			TAPINATOR, INC.

			
	
			 

				 	
			 

				 	
			 

			
	
			 

				 	
			 

				 	
			 

			
	
			/s/ Khurram Samad

				 	
			By: 

				
			/s/ Ilya Nikolayev

			
	
			 

				 	
			Name:

				
			Ilya Nikolayev

			
	 	 	Title:	CEO

  

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EXHIBIT A

 

List of Preexisting Games

 

 

Monster Truck Driving

Truck Parking

Trucker Parking

Limousine Parking

Bus Parking

Zombie Sniper Shooter

Carnival Toss

What’s the Word?

What’s the Brand?

4 Pics, 1 Song

4 Scenes, 1 TV Show

4 Scenes, 1 Movie

The Movie Puzzle

The Sketch Puzzle

Movie Crush

 

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EXHIBIT B

 

List of Pre-Public Games

 

 

 Airport Bus Parking/Airport Bus Driving Simulator

 Ambulance Parking Simulator

Army In Town/Army War Tank Simulator/Army Tank Hero/Army Tank Parking/Army Tank Simulator

Army Trucker Parking/Army War Truck Simulator/Army Truck Simulator

 Baby Doctor 

Battle Field Tank Simulator

Boat Parking Simulator

Bus Driver /Bus Driving Simulator

 Christmas Girl Spa 

Classic Car Parking

Classic Transport Plane

Fire Truck Parking/Fire Truck Simulator

Gift Delivery Truck Parking/Elf Gift Deliver Simulator/Christmas Gift Delivery

Guess the Brand 

Guess the Cartoon

Guess The Place

Guess the Sketch

Guess the TV Show

Guess What Doing

Guess What Fruit

Guess What Movie

Guess What Word

Jet Plane Parking/Jet Fighter Parking/Fighter Jet Parking

Jet Ski Driving Simulator

Jumbo Jet Parking/Boeing Parking

Know Your EQ

Love Ride Parking/Valentine Ride Simulator

Places Puzzle

Police Car Parking

Pro Parking: Truck Edition

School Bus Driving

Soccer Fan Bus Driver

Sports Car Parking/Sports Car Rush Drive

Taxi Driver/Pro Parking Taxi

Toy Bus Parking: Kids Cars

Toy Car Parking/Kids Toy Car Rush/Kids Toy Car Parking

Transport Plane Landing/Transporter Plane/Cargo Plane Landing

Transport Trucker

War Trucker

What's He Doing

What's the Fruit

Zombie Hunting

Zombie Sniper/Zombie Sniper Shooting

 

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