Document:

Exhibit 10.2

 

LIVE VENTURES INCORPORATED

 

2014 OMNIBUS EQUITY INCENTIVE PLAN

 

INCENTIVE STOCK OPTION AGREEMENT

 

THIS AGREEMENT made as
of January 3, 2017 (the “Grant Date”), by and between Live Ventures Incorporated (the “Company”)
and Virland A. Johnson (the “Optionee”).

 

WITNESSETH:

 

WHEREAS, the Company has
adopted and maintains the LiveDeal, Inc. 2014 Omnibus Equity Incentive Plan effective January 8, 2014 (the “Plan”),
and

 

WHEREAS, the Committee
has authorized the grant to the Optionee of an Option under the Plan, on the terms and conditions set forth in the Plan and as
hereinafter provided,

 

NOW, THEREFORE, in consideration
of the premises contained herein, the Company and the Optionee hereby agree as follows:

 

1.                 
Plan. This Option award is made pursuant to the terms of the Plan which are incorporated herein by reference. Terms
used in this Agreement which are defined in the Plan shall have the same meaning as set forth in the Plan.

 

2.                 
Grant of Option. The Company hereby grants to the Optionee an option to purchase:

 

(a)              
Option A: 4,000 of the Company’s Ordinary Shares (“Shares”) for an Option price per Share equal to $23.4100,
which is the fair market value on the date of the grant;

 

(b)              
Option B: 4,000 of the Company’s Ordinary Shares (“Shares”) for an Option price per Share equal to $27.6000;

 

(c)              
Option C: 4,000 of the Company’s Ordinary Shares (“Shares”) for an Option price per Share equal to $31.7400;

 

(d)              
Option D: 4,000 of the Company’s Ordinary Shares (“Shares”) for an Option price per Share equal to $36.5010;
and

 

(e)              
Option E: 4,000 of the Company’s Ordinary Shares (“Shares”) for an Option price per Share equal to $41.9762.

 

 

 

 

 

    	 	1	 

     

    

 

The Option is intended by the Committee
to qualify as an Incentive Stock Option as provided in Section 9 and the provisions hereof shall be interpreted on a basis consistent
with such intent.

 

3.                 
Exercise Period.

 

(a)              
The Option shall be exercisable on or after vesting of the Option pursuant to the terms of the Plan and this Agreement.

 

(b)              
All or any part of the Option may be exercised by the Optionee no later than the tenth (10th) anniversary of the Grant Date
of the Option.

 

(c)              
This Agreement and the Option shall terminate on the earlier of (i) the tenth (10th) anniversary of the Grant Date, or (ii)
the date as of which the Option has been fully exercised.

 

4.                 
Vesting. Except as provided below and subject to the Optionee’s continuation of service with the Company during
the vesting period, the Option shall vest and become exercisable pursuant to the following schedule:

 

(a)              
Option A: 12 months from the Grant Date;

 

(b)              
Option B: 24 months from the Grant Date;

 

(c)              
Option C: 36 months from the Grant Date;

 

(d)              
Option D: 48 months from the Grant Date; and

 

(e)              
Option E: 60 months from the Grant Date.

 

5.                 
Termination of Service. In the event of the Optionee’s Termination of Service with the Company, the provisions
of Article VI of the Plan shall control.

 

6.                 
Change in Control. Notwithstanding the foregoing upon a Change of Control, the Option shall automatically become
fully vested and exercisable as of the date of such Change of Control.

 

7.                 
Restrictions on Transfer of Option. This Agreement and the Option shall not be transferable otherwise than by will
or by the laws of descent and distribution and the Option shall be exercisable, during the Optionee’s lifetime, solely by
the Optionee.

 

8.                 
Exercise of Option.

 

(a)              
The Option shall become exercisable at such time as shall be provided herein or in the Plan and shall be exercisable by
written notice of such exercise, in the form prescribed by the Committee, to the Secretary of the Company, at its principal office.
The notice shall specify the number of Shares for which the Option is being exercised.

 

 

 

    	 	2	 

     

    

 

(b)              
Shares purchased pursuant to the Option shall be paid for in full at the time of such purchase in cash.

 

9.                 
Tax Status of Option. 

 

(a)              
Incentive Stock Option. This Option is intended to be an Incentive Stock Option within the meaning of Section 422(b)
of the Code, but the Company does not represent or warrant that this Option qualifies as such. The Optionee should consult with
the Optionee’s own tax advisor regarding the tax effects of this Option and the requirements necessary to obtain favorable
income tax treatment under Section 422 of the Code, including, but not limited to, holding period requirements. If at any time
the Option shall fail or cease to meet the requirements of Section 422 of the Code, it shall automatically convert to a, and be
treated as a, Nonqualified Option under the terms of the Plan.

 

(b)              
Exercise Limitation. Options shall not be treated as Incentive Stock Options to the extent the aggregate Fair Market
Value of the shares of Stock with respect to which the Optionee may exercise the Option for the first time during any calendar
year, when added to the aggregate Fair Market Value of the shares subject to any other options designated as Incentive Stock Options
granted to the Optionee under all stock option plans of Company prior to the Date of Option Grant with respect to which such options
are exercisable for the first time during the same calendar year, shall exceed One Hundred Thousand Dollars ($100,000), as and
only to the extent necessary to comply with the limitations under Code Section 422(d). For purposes of the preceding sentence,
options designated as Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair
Market Value of shares of stock shall be determined as of the time the option with respect to such shares is granted as required
under Code Section 422(d).

 

(c)              
Notice of Disqualifying Disposition. The Optionee shall promptly notify the Company if the Optionee disposes of any
of the shares acquired pursuant to the Option within one (1) year after the date of the Optionee exercises all or part of the Option
or within two (2) years after the Grant Date of Option. Until such time as the Optionee disposes of such shares in a manner consistent
with the provisions of this Agreement, unless otherwise expressly authorized by the Company, the Optionee shall hold all shares
acquired pursuant to the Option in the Optionee’s name (and not in the name of any nominee) for the one-year period immediately
after the exercise of the Option and the two-year period immediately after the Grant Date of the Option. At any time during the
one-year or two-year periods set forth above, the Company may place a legend on any certificate representing shares acquired pursuant
to the Option requesting the transfer agent for the Company’s stock to notify the Company of any such transfers. The obligation
of the Optionee to notify the Company of any such transfer shall continue notwithstanding that a legend has been placed on the
certificate pursuant to the preceding sentence.

 

10.             
Regulation by the Committee. This Agreement and the Option shall be subject to the administrative procedures and
rules as the Committee shall adopt. All decisions of the Committee upon any question arising under the Plan or under this Agreement,
shall be conclusive and binding upon the Optionee and any person or persons to whom any portion of the Option has been transferred
by will, by the laws of descent and distribution.

 

 

 

 

 

 

    	 	3	 

     

    

 

11.             
Rights as a Shareholder. The Optionee shall have no rights as a shareholder with respect to Shares subject to the
Option until certificates for Shares are issued to the Optionee.

 

12.             
Reservation of Shares. With respect to the Option, the Company hereby agrees to at all times reserve for issuance
and/or delivery upon payment by the Optionee of the Option price, such number of Shares as shall be required for issuance and/or
delivery upon such payment pursuant to the Option.

 

13.             
Delivery of Share Certificates. Within a reasonable time after the exercise of the Option the Company shall cause
to be delivered to the Optionee, his or her legal representative or his or her beneficiary, a certificate for the Shares purchased
pursuant to the exercise of the Option.

 

14.             
Withholding. In the event the Optionee elects to exercise the Option (or any part thereof), the Company or an Affiliate
shall be entitled to deduct and withhold the minimum amount necessary in connection with the issuance of Shares to the Optionee
to satisfy its withholding obligations under any and all federal, state or local tax rules or regulations.

 

15.             
Amendment. The Committee may amend this Agreement at any time and from time to time; provided, however, that no amendment
of this Agreement that would materially and adversely impair the Optionee’s rights or entitlements with respect to the Option
shall be effective without the prior written consent of the Optionee (unless such amendment is required in order to cause the Award
hereunder to qualify as “performance-based” compensation within the meaning of Section 162(m) or be exempt from Code
Section 409A, as interpreted by applicable authorities).

 

16.             
Optionee Acknowledgment. Optionee acknowledges and agrees that the vesting of shares pursuant to this Option Agreement
is earned only by continuing service with the Company. Optionee further acknowledges and agrees that nothing in the Agreement,
nor in the Plan shall confer upon the Optionee any right to continue in the service of the Company, nor shall it interfere in any
way with Optionee’s right or the Company’s right to terminate Optionee’s service at any time, with or without
cause. Optionee acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions
thereof. Optionee has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel
prior to executing this Option and fully understands all provisions of the Option. By executing this Agreement, the Optionee hereby
agrees to be bound by all of the terms of both the Plan and this Agreement.

 

 

 

 

Signature Page Follows

 

 

 

 

 

 

 

 

    	 	4	 

     

    

 

Live Ventures Incorporated Omnibus
Equity Incentive Plan Incentive Option Agreement

 

	ATTEST:	 	 	 	LIVE VENTURES INCORPORATED	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	/s/ Virland A. Johnson	 	January 3, 2017	 	By: /s/ Jon Isaac	 	January 3, 2017
	 	 	Date	 	 	 	Date
	 	 	 	 	Its: CEO and President	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Virland A. Johnson, Optionee	 	January 3, 2017
	 	 	 	 	 	 	Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	5	 

     

    

 

Live Ventures Incorporated Omnibus
Equity Incentive Plan Incentive Option Agreement

 

 

SAMPLE

NOTICE OF EXERCISE

 

	Live Ventures Incorporated

    Compensation Committee	Date
    of Exercise:
	 	 	 

Ladies
and Gentlemen:

 

This
constitutes notice under my stock Option that I elect to purchase the number of Shares for the price set forth below.

 

	Type of Option:	Incentive Stock Option	 
	 	 	 
	Grant Date:	 	 
	 	 	 
	Number of Shares as

to which Option is

exercised:	 	 
	 	 	 
	Certificates to be	 	 
	issued in name of:	 	 
	 	 	 
	Total exercise price:	$	 
	 	 	 
	Cash payment delivered

herewith:	$	 

 

 

 

By
this exercise, I agree (i) to execute or provide such additional documents as Live Ventures Incorporated (the “Company”)
may reasonably require pursuant to the terms of this Notice of Exercise and the Company’s 2014 Omnibus Equity Incentive Plan
(the “Plan”), and (ii) to provide for the payment by me to the Company (in the manner designated by the Company) of
the Company’s withholding obligation, if any, relating to the exercise of this Option.

 

Very
truly yours,

 

 

 

 

_____________________________

Optionee

 

 

 

 

 

 

 

    	 	6staf-ex101_7.htm

 

Exhibit 10.1

FIRST AMENDMENT TO SECURITIES 

PURCHASE AGREEMENTS AND 8% SENIOR SECURED CONVERTIBLE DEBENTURES

 

This FIRST AMENDMENT TO SECURITIES PURCHASE AGREEMENTS AND 8% SENIOR SECURED CONVERTIBLE DEBENTURES (this “FIRST Amendment”) is dated as of January 3, 2017, and effective as of January 1, 2017, among Staffing 360 Solutions, Inc., a Nevada corporation (“Parent”), each of Parent’s subsidiaries (“Subsidiaries” and collectively, the “Company”),  and Hillair Capital Management LLC (the “Holder”) thereto, and amends that certain Securities Purchase Agreement, dated as of July 8, 2015 and that certain Securities Purchase Agreement, dated as of February 8, 2016 (each a “Purchase Agreement” and together the “Purchase Agreements”), by and between the Parent the Holder and the 8% Senior Secured Convertible Debenture Due April 1, 2017 (issued on July 8, 2015) (“2015 Debenture”) and the 8% Senior Secured Convertible Debenture Due July 1, 2017 (issued on February 8, 2016) (“2016 Debenture”) (each a “Debenture” and together the “Debentures”), which Debentures are guaranteed, and secured by, all the assets of the Parent and the Subsidiaries.  Capitalized terms used and not otherwise defined in this FIRST Amendment shall have the meanings specified in the Purchase Agreements and Debentures, as applicable.

 

WHEREAS, the Company has requested (i) the Periodic Redemption Amount due on January 1, 2017 be paid in kind and accretion to principal amount of the Debentures rather than cash pursuant to the terms of this FIRST Amendment, (ii) all accrued but unpaid interest on the Debentures be accreted to the principal amount outstanding on the Debentures and (ii) the Periodic Redemption Amount due July 1, 2017 (also the Maturity Date) be extended to October 1, 2018.  

 

WHEREAS, the Holders are prepared to agree to the Company’s requests subject to the terms and conditions set forth herein.

 

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

Section 1.  Amendments to Purchase Agreements.  The Purchase Agreement shall be amended as follows:

New Section 4.17 is added to each Purchase Agreement which shall be as follows: “Shareholder Approval.  The Company shall hold a special vote  of shareholders (which may also be at the annual meeting of shareholders) at the earliest practical date (and in any event, pursuant to a proxy to be filed on or before April 1, 2017) for the purpose of obtaining Shareholder Approval (as defined below), with the recommendation of the Company’s Board of Directors that such proposal be approved, and the Company shall solicit proxies from its shareholders in connection therewith in the same manner as all other management proposals in such proxy statement and all management-appointed proxyholders shall vote their proxies in favor of such proposal.  The Company shall use its reasonable best efforts to obtain such Shareholder Approval. If the Company does not 

 

59126321_2

 

obtain Shareholder Approval at the first vote, the Company shall call a vote every four months thereafter to seek Shareholder Approval until the earlier of the date Shareholder Approval is obtained or the Debentures are no longer outstanding. “Shareholder Approval” means such approval as may be required by the applicable rules and regulations of the Nasdaq Stock Market (or any successor entity) from the shareholders of the Company with respect to the transactions contemplated by the Transaction Documents, including the issuance of all of the Underlying Shares in excess of 19.99% of the issued and outstanding Common Stock on the applicable date required thereby.”

Section 2.  Amendments to Debentures.  Each Debenture shall be amended as follows:

(a)The definition of “Maturity Date” is hereby amended to be October 1, 2018.

(b)The Definition of “Optional Redemption Amount” is hereby amended and restated as follows: “means the sum of (a) one hundred percent (100%) of the then outstanding principal amount of the Debenture, (b) accrued but unpaid interest and (c) all liquidated damages and other amounts due in respect of the Debenture.

(c)The definition of “Periodic Redemption Amount” is hereby amended to mean the sum of (i) all then outstanding principal amount of this Debenture and (ii) accrued but unpaid interest, liquidated damages and any other amounts then owing to the Holder in respect of this Debenture.

(d)The definition of “Periodic Redemption Date” is hereby amended to be October 1, 2018.

(e)Interest payments under the Debentures are not payable until October 1, 2017 on which date all accrued but unpaid interest shall be payable pursuant to Section 2 of the Debentures.  Thereafter interest payments shall be made in accordance with the schedule of interest payments set forth in Section 2(a).

(f)Section 4(b) of each Debenture is hereby amended and restated as follows: “Conversion Price.  The conversion price in effect on any Conversion Date shall be equal to $3.00, subject to adjustment herein (the “Conversion Price”).”

Section 3.  Accretion of Interest; Increase in Principal of Debentures; Waiver of Event of Default.  The Company hereby agrees to accrete all accrued but unpaid interest on the Debentures as of the date hereof ($53,760 in the aggregate) to the principal amount of the 2015 Debenture.  Additionally, in consideration of the amendments under this FIRST Amendment, the Company agrees to increase the principal on the 2015 Debenture by $1,111,846.  Accordingly, as of the date hereof the outstanding principal amount outstanding of the 2015 Debenture is $3,125,606.  Subject to compliance with the terms of this Agreement, the Holder hereby waives the Event of Default that otherwise would have occurred on January 1, 2017 as part of the Periodic Redemption.

Section 4.  Exchange of 2016 Debenture for Shares of Common Stock.  Within two Trading Days of the date hereof the Company shall deliver to the Holder, on an expedited 

 

59126321_2

 

basis via The Depository Trust Company (“DTC”) Deposit or Withdrawal at Custodian system (“DWAC”) 600,000 shares of Common Stock in exchange for the surrender of all principal amount of the 2016 Debenture, which shares shall be issued free of any legend or resale restrictions.  If such shares are not received in the DTC account of the Holder within 5 Trading Days of the date hereof, this FIRST Amendment shall be deemed null and void and of no further force and effect and all amounts due and owing to the Holder shall be immediately paid in full.  Upon issuance of such shares, the 2016 Debenture shall be deemed paid in full and no longer outstanding.

Section 5.  Public Announcement. The Company shall (a) by 9:00 a.m. (New York City time) on the 4th Trading Day immediately following the date hereof, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a Current Report on Form 8-K with the Commission within the time required by the Exchange Act.  From and after the issuance of such press release, the Company represents to the Holders that it shall have publicly disclosed all material, non-public information delivered to any of the Holders by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents.  In addition, effective upon the issuance of such press release, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and any of the Holders or any of their Affiliates on the other hand, shall terminate. The Company and each Holder shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company nor any Holder shall issue any such press release nor otherwise make any such public statement without the prior consent of the Company, with respect to any press release of any Holder, or without the prior consent of each Holder, with respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication.  Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Holder, or include the name of any Holder in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Holder, except (a) as required by federal securities law in connection with the filing of final Transaction Documents with the Commission and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Holders with prior notice of such disclosure permitted under this clause (b).

Section 6.  Miscellaneous.  Except as specifically amended or waived above, the Purchase Agreement and the other Transaction Documents shall remain unchanged and in full force and effect and are hereby ratified and confirmed.  The execution, delivery and effectiveness of this FIRST Amendment shall not operate as a waiver of any right, power or remedy of the Holder under the Purchase Agreement or any Transaction Document, nor constitute a waiver of any provision of the Purchase Agreement or any Transaction Document, except as specifically provided by this FIRST Amendment.  This FIRST Amendment is a Transaction Document, and a part of the Purchase Agreement, for all purposes of the Purchase Agreement. This FIRST Amendment may be executed in any number of counterparts, and by different parties hereto on separate counterpart signature pages, and all such counterparts taken together shall be deemed to constitute one and the 

 

59126321_2

 

same instrument.  Delivery of a counterpart signature page by facsimile transmission or by e-mail transmission of an Adobe portable document format file (also known as a “PDF” file) shall be effective as delivery of a manually executed counterpart signature page.  Section headings used in this FIRST Amendment are for reference only and shall not affect the construction of this FIRST Amendment.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

59126321_2

 

 

IN WITNESS WHEREOF, the parties hereto have caused this FIRST Amendment to be duly executed and delivered as of the day and year first above written.

 

 

 

Company:

 

STAFFING 360 SOLUTIONS, INC.

 

 

 

/s/ Brendan Flood

By:  Brendan Flood

Title:  Executive Chairman

 

 

Holder:

 

HILLAIR CAPITAL MANAGEMENT LLC

 

 

/s/ Sean M. McAvoy

By:  Sean M. McAvoy

Title:  Managing Member

 

 

 

 

 

 

 

[Signature Page to FIRST Amendment]

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