Document:

EXHIBIT 10.4

  

  

  

  

  

  
    FORM OF

    NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

    

    

    Granted by

    

    

    ENERGY SERVICES OF AMERICA CORPORATION

    

    

    under the

    

    

    ENERGY SERVICES OF AMERICA CORPORATION

    2022 EQUITY INCENTIVE PLAN

    

    

    This stock option agreement (“Option”
      or “Agreement”) is and will be subject in every respect to the provisions of the 2022 Equity Incentive Plan (the “Plan”) of Energy Services of America Corporation (the “Company”), which
      are incorporated herein by reference and made a part hereof, subject to the provisions of this Agreement.  A copy of the Plan and related prospectus have been provided to each person granted a stock option pursuant to the Plan.  The holder of this
      Option (the “Participant”) hereby accepts this Option, subject to all the terms and provisions of the Plan and this Agreement, and agrees that all
      decisions under and interpretations of the Plan and this Agreement by the Committee appointed to administer the Plan (the “Committee”) or the Board
      of Directors will be final, binding and conclusive upon the Participant and the Participant’s heirs, legal representatives, successors and permitted assigns.  Except where the context otherwise requires, the term “Company” includes the parent and all
      present and future subsidiaries of the Company as defined in Section 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended from time to time (the “Code”).  Capitalized terms used herein but not defined will have the same meaning as in the Plan.

     

    

    
      	1.	
              Name of Participant:  _________________________

               

              

            

    

    
      
        	2.	Date
                    of Grant:  __________, 20      .

      

      

      

    
      	
              3.

            	
              Total number of shares of Company
                  common stock, $0.0001 par value per share, that may be acquired pursuant to this Option:__________

                (subject to adjustment pursuant to Section 9 hereof).

               

              

            

    

    
      	
              •

            	
              This is a Non-Qualified Stock Option.

            

    

    

      	4.	
              Exercise price per share: $ _______

                (subject to adjustment pursuant to Section 9 below)

            

    

    

    	5.	
            Expiration Date of Option:  _________, 20      .  Notwithstanding anything in this Agreement to the contrary, no part of this Option may be exercised at any time on or after the expiration date.

             

            

          

    	6.	
            Vesting Schedule.  Unless sooner vested in accordance with the
              terms of the Plan and this Agreement, the Option granted hereunder will vest (i.e., become exercisable) in accordance with the following schedule:

             

            

          

    Vesting Date Number of Shares Exercisable

    

    

    

    

    As set forth in Section 10 of this Agreement, vesting will automatically accelerate pursuant to Sections 2.7 and 4.1 of the Plan in
      the event of death or Disability or an Involuntary Termination at or following a Change in Control.

    
      
        

    

    
    

    

    	7.	
            Exercise Procedure and Delivery of Notice of Exercise of Option. 
              This Option may be exercised in whole or in part by the Participant’s delivery to the Company of written notice (the “Notice of Exercise of Option”
              attached hereto as Exhibit A or as otherwise acceptable to the Company) setting forth the number of shares with respect to which this Option is to be exercised, together with payment by cash or other means acceptable to the Committee, in
              accordance with Section 2.2(b) of the Plan.

             

            

          

    	8.	
            Delivery of Shares.  Delivery of shares of Stock upon the
              exercise of this Option will comply with all applicable laws (including the requirements of the Securities Act) and the applicable requirements of any securities exchange or similar entity.

          

    

      	9.	
              Adjustment Provisions.

            

    

    

      

    This Option, including the number of shares subject to the Option and the exercise price, will be adjusted upon
      the occurrence of the events specified in, and in accordance with the provisions of, Section 3.3 of the Plan.

     

    

    
      	10.	
              Accelerated Vesting and Exercisability Period.

            

    

    

      

    The vesting of this Option will accelerate as set forth in the following  provisions:

      

    

    
      	
              (i)

            	
              Death.  In the event of the Participant’s
                Termination of Service by reason of death, any unvested portion of the Option subject to this Agreement will vest and any unexercised portion of the Option may thereafter be exercised by the Participant’s legal representative or
                beneficiaries for a period of one (1) year from the Participant’s death.

               

              

            

    

    
      	
              (ii)

            	
              Disability.  In the event of the
                Participant’s Termination of Service by reason of the Participant’s Disability, any unvested portion of this Option will vest and any unexercised portion of the Option may thereafter be exercised by the Participant or the Participant’s
                legal representative for a period of one (1) year following the Termination of Service due to Disability.

               

              

            

    

    
      	
              (iii)

            	
              Change in Control.  In the event of the
                Participant’s Involuntary Termination at or following a Change in Control, any unvested portion of the Option will vest and any unexercised portion of the Option may be exercised by the Participant or the Participant’s legal representative
                for a period of one (1) year following the Participant’s Involuntary Termination.

            

    

    

    

    
      	
              (iv)

            	
              Retirement.  In the event of the
                Participant’s Termination of Service by reason of the Participant’s Retirement, vested Options may be exercised for a period of one (1) year from the date of Termination of Service. Options that have not vested will expire and be forfeited
                on the date of Termination of Service by reason of Retirement.  “Retirement” shall have the meaning set forth in Article 8 of the Plan.

            

    

    

    

    
      	
              (v)

            	
              Termination for Cause.  In the event of the Participant’s Termination of Service for Cause, all Options subject to this Agreement that have not been exercised
                will immediately expire and be forfeited.

            

    

    

    

    	

          	(vi)	
            Other Termination.  In the event of the Participant’s Termination from Service for any reason other than due to death, Disability, Involuntary Termination at or

          

    
      2

      
        

    

    following a Change in Control or for Cause, this Option may thereafter be exercised, only to the extent it was exercisable at the time
      of the termination and only for a period of three (3) months following the termination.

    

    

    
      	11.	
              Miscellaneous.

            

    

    

    

    	

          	11.1	
            No Option will confer upon the Participant any rights as a stockholder of the Company prior to the date on which the individual fulfills all conditions for receipt of
              such rights.

          

    

    

    	

          	11.2	
            This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.

          

    

    

    	

          	11.3	
            At the discretion of the Committee, a Non-Qualified Option granted under the Plan may be transferable by the Participant, provided, however, that transfers will be
              limited to Immediate Family Members of Participants, trusts and partnerships established for the primary benefit of such family members or to charitable organizations, and provided, further, that the transfers are not made for consideration
              to the Participant.

          

    

    

    	

          	11.4	
            This Agreement will be governed by and construed in accordance with the laws of the State of West Virginia.

          

    

    

    	

          	11.5	
            This Option will be subject to any required federal, state and local tax withholding, which may be effected in the manner or manners permitted by the Company.

             

            

          

    	

          	11.6	
            The granting of this Option does not confer upon the Participant any right to be retained in the service of the Company or any subsidiary.

          

    

    

    	

          	11.7	
            This Option is subject to forfeiture in accordance with the provisions of Section 7.16 of the Plan or as otherwise adopted by the Company.

          

    

    

    [Signature Page to Follow]

    
      3

      
        

    

    

    

    IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in its name and on its behalf as of the
      date of grant of this Option set forth above.

    ENERGY SERVICES OF AMERICA CORPORATION

    By: _____________________________________________

    Its: _____________________________________________

    

    

    PARTICIPANT’S ACCEPTANCE

    The undersigned hereby accepts the foregoing Option and agrees to the terms and conditions hereof, including the
      terms and provisions of the Plan.  The undersigned hereby acknowledges receipt of a copy of the Plan and related prospectus.

    PARTICIPANT

     

    

     

    

     

    

    _______________________________________________

    

    

    

    

    

     

    

    

    

    
      4

      
        

    

    EXHIBIT A

    NOTICE OF EXERCISE OF OPTION

    

    

    I hereby exercise the stock option (the “Option”) granted to me by Energy Services of America Corporation (the “Company”) or its
      affiliate, subject to all the terms and provisions set forth in the Non-Qualified Stock Option Agreement (the “Agreement”) and the Energy Services of America Corporation 2022 Equity Incentive Plan (the “Plan”) referred to therein, and notify you of
      my desire to purchase __________________ shares of common stock of the Company (“Common Stock”) for a purchase price of $______ per share.

    

    

    I elect to pay the exercise price by:

    

    

    	

          	___	
            Cash or personal, certified or cashier’s check in the sum of $_______, in full/partial payment of the purchase price.

          

    	

          	___	
            Stock of the Company with a fair market value of $______ in full/partial payment of the purchase price.*

          

    	

          	___	
            My check in the sum of $_______ and stock of the Company with a fair market
              value of $______, in full/partial payment of the purchase price.*

          

    

    

    	

          	___	
            A net settlement of the Option, using a portion of the shares obtained on exercise in payment of the exercise price of the Option (and, if applicable, any minimum
              required tax withholding).

          

    	

          	___	
            Selling  ______ shares from my Option shares through a broker in full/partial payment of the purchase price.

          

    I understand that after this exercise, ____________ shares of Common Stock remain subject to the Option, subject to
      all terms and provisions set forth in the Agreement and the Plan.

    I hereby represent that it is my intention to acquire these shares for the following purpose:

    ___ investment

    ___ resale or distribution

    

    

    Please note: if your intention is to resell (or distribute within the meaning of Section 2(11) of the Securities
      Act of 1933) the shares you acquire through this Option exercise, the Company or transfer agent may require an opinion of counsel that such resale or distribution would not violate the Securities Act of 1933 prior to your exercise of such Option.

    Date: ____________, _____.                   _________________________________________

    Participant’s signature

    

    

    * If I elect to exercise by exchanging shares I already own, I will constructively
        return shares that I already own to purchase the new option shares.  If my shares are in certificate form, I must attach a separate statement indicating the certificate number of the shares I am treating as having exchanged.  If the shares are held
        in “street name” by a registered broker, I must provide the Company with a notarized statement attesting to the number of shares owned that will be treated as having been exchanged.  I will keep the shares that I already own and treat them as if
        they are shares acquired by the option exercise.  In addition, I will receive additional shares equal to the difference between the shares I constructively exchange and the total new option shares that I acquire.

  

  5ex_336345.htm

 

Exhibit 4.3

 

Description of the Registrant’s Securities 

Registered Pursuant to Section 12 of the 

Securities Exchange Act of 1934

 

As of December 31, 2021, Guerrilla RF, Inc. (“we,” “our,” “us,” or the “Company”) had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): common stock, $0.0001 par value per share.

 

  The following information is a summary of information concerning our common stock, and does not purport to be complete. It is subject to and qualified in its entirety by reference to our amended and restated certificate of incorporation and amended and restated bylaws, each of which are incorporated by reference as an exhibit      to the Annual Report on Form 10-K of which this Exhibit 4.3 is a part.

 

Authorized Capital Stock

 

Our authorized capital stock consists of 300,000,000 shares of common stock, and 10,000,000 shares of undesignated preferred stock, $0.0001 par value per share. The outstanding shares of the Company’s common stock are duly authorized, validly issued, fully paid and nonassessable.

 

Dividends

 

Subject to the rights of the holders of any outstanding preferred stock, the holders of outstanding shares of our common stock are entitled to receive dividends out of assets or funds legally available for the payment of dividends at the times and in the amounts that our Board of Directors may determine.

 

Voting

 

Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders. No holder of common stock is entitled to cumulate votes in voting for directors.

 

No Preemptive or Similar Rights

 

Holders of our common stock have no preemptive rights. Our common stock is not subject to redemption or sinking fund provisions.

 

Liquidation

 

In the event of our liquidation, dissolution or winding-up, holders of our common stock are entitled to receive, pro rata, our assets which are legally available for distribution, after satisfaction of all outstanding debt and liabilities.

 

Preferred Stock

 

Our Board of Directors has the authority, without further action by our stockholders, to issue up to 10,000,000 shares of preferred stock in one or more series and to fix the designations, powers, preferences, rights, qualifications, limitations and restrictions thereof. Our Board of Directors can also increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then outstanding, without any further vote or action by our stockholders. Our Board of Directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock. The issuance of preferred stock could have the effect of delaying, deferring, or preventing a change in our control and might adversely affect the market price of our common stock and the voting and other rights of the holders of our common stock. We have no current plan to issue any shares of preferred stock.

 

Anti-Takeover Provisions

 

The provisions of the Delaware General Corporation Law (the “DGCL”), our amended and restated certificate of incorporation and our amended and restated bylaws could have the effect of delaying, deferring or discouraging another person from acquiring control of us. These provisions, which are summarized below, may have the effect of discouraging coercive takeover practices and inadequate takeover bids. They are also designed to encourage persons seeking to acquire control of us to negotiate first with our Board of Directors. We believe that the benefits of increased protection of our potential ability to negotiate with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal to acquire us because negotiation of these proposals could result in an improvement of their terms.

 

Delaware Law

 

We are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a three-year period following the date such person became an interested stockholder, unless the business combination or the transaction in which the person became an interested stockholder is approved in a prescribed manner or certain other exceptions are met. Generally, a “business combination” includes a merger, asset or stock sale, or other transaction or series of transactions together resulting in a financial benefit to an interested stockholder. An “interested stockholder” includes a person who, together with affiliates and associates, owns, or did own within three years prior to the determination of interested stockholder status, 15% or more of the corporation’s outstanding voting stock. The existence of this provision generally will have an anti-takeover effect for transactions not approved in advance by the Board of Directors, including discouraging attempts that might result in a premium over the market price for the shares of common stock held by stockholders.

 

Amended and Restated Certificate of Incorporation and Amended and Restated Bylaw Provisions

 

Our amended and restated certificate of incorporation and our amended and restated bylaws include a number of provisions that could deter hostile takeovers or delay or prevent changes in control of our company. Certain of these provisions are summarized below:

 

	 	
			•

				
			Board Vacancies. Our amended and restated certificate of incorporation and amended and restated bylaws authorize only our Board of Directors to fill vacant directorships, including newly created seats. In addition, the number of directors constituting our Board of Directors is permitted to be set only by a resolution adopted by a majority vote of our entire Board of Directors. These provisions would prevent a stockholder from increasing the size of our Board of Directors and then gaining control of our Board of Directors by filling the resulting vacancies with its own nominees. This makes it more difficult to change the composition of our Board of Directors but promotes continuity of management.

			

	 	
			•

				
			Classified Board. Our amended and restated certificate of incorporation and amended and restated bylaws provide that our Board of Directors is classified into three classes of directors, each with staggered three-year terms. A third party may be discouraged from making a tender offer or otherwise attempting to obtain control of us as it is more difficult and time consuming for stockholders to replace a majority of the directors on a classified Board of Directors.

			

	 	
			•

				
			Directors Removed Only for Cause. Our amended and restated certificate of incorporation provides that stockholders may only remove a director for cause, and only by the affirmative vote of the holders of at least two-thirds of our outstanding common stock.

			
	 	
			•

				
			Elimination of Stockholder Action by Written Consent; Special Meetings of Stockholders. Our amended and restated certificate of incorporation provides that our stockholders may not take action by written consent, but may only take action at annual or special meetings of our stockholders. As a result, holders of our capital stock would not be able to amend our amended and restated bylaws or remove directors without holding a meeting of our stockholders called in accordance with our amended and restated bylaws. Further, our amended and restated bylaws provide that special meetings of our stockholders may be called only by a majority of our Board of Directors, the chairman of our Board of Directors, or our chief executive officer, thus prohibiting a stockholder from calling a special meeting. These provisions might delay the ability of our stockholders to force consideration of a proposal or for stockholders to take any action, including the removal of directors.

			

	 	
			•

				
			Advance Notice Requirements for Stockholder Proposals and Director Nominations. Our amended and restated bylaws establish advance notice procedures with respect to proposals and the nomination of candidates for election as director. Our amended and restated bylaws also specify certain requirements regarding the form and content of a stockholder’s notice. These provisions may preclude our stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting of stockholders if the proper procedures are not followed. These provisions may defer, delay or discourage a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to influence or obtain control of us.

			

	 	
			•

				
			No Cumulative Voting. Our amended and restated certificate of incorporation does not provide for cumulative voting in the election of directors.

			

	 	
			•

				
			Supermajority Requirement for Amendment of Charter Provisions. Our amended and restated certificate of incorporation provides that the affirmative vote of the holders of least 66 2/3% of our outstanding common stock is required to amend certain provisions of our amended and restated certificate of incorporation.

			

	 	
			•

				
			Choice of Forum. Our amended and restated certificate of incorporation provides that, to the fullest extent permitted by law, the Court of Chancery of the State of Delaware will be the exclusive forum for: (i) any derivative action or proceeding brought on our behalf; (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors or officers to the Company or our stockholders; (iii) any action asserting a claim against us arising pursuant to the DGCL, our amended and restated certificate of incorporation or our amended and restated bylaws; or (v) any action asserting a claim against us that is governed by the internal affairs doctrine. Our amended and restated bylaws provide that the federal district courts of the United States of America will, to the fullest extent permitted by law, be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act, which we refer to as a Federal Forum Provision. Our decision to adopt a Federal Forum Provision followed a decision by the Supreme Court of the State of Delaware holding that such provisions are facially valid under Delaware law. Although there can be no assurance that federal courts or state courts will follow the holding of the Delaware Supreme Court or determine that the Federal Forum Provision should be enforced in a particular case, application of the Federal Forum Provision means that suits brought by our stockholders to enforce any duty or liability created by the Securities Act must be brought in federal court and cannot be brought in state court. Although neither the exclusive forum provision nor the Federal Forum Provision applies to suits brought to enforce any duty or liability created by the Exchange Act, Section 27 of the Exchange Act creates exclusive federal jurisdiction over all claims brought to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder. Accordingly, actions by our stockholders to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder also must be brought in federal court. Our stockholders will not be deemed to have waived our compliance with the federal securities laws and the regulations promulgated thereunder. Any person or entity purchasing or otherwise acquiring or holding any interest in any of our securities shall be deemed to have notice of and consented to our exclusive forum provisions, including the Federal Forum Provision. These provisions may limit a stockholder’s ability to bring a claim in a judicial forum of their choosing for disputes with us or our directors, officers or other employees, which may discourage lawsuits against us and our directors, officers, and other employees.

			

 

Transfer Agent and Registrar

 

The transfer agent and registrar for the Company’s common stock is VStock Transfer, LLC.  The transfer agent’s address is 18 Lafayette Place, Woodmere, NY 11598.

 

Exchange Listing

 

The Company’s common stock is not yet currently quoted on OTC Markets Group trading platform under the symbol “GUER.”

 

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