Document:

Exhibit 10.1

 

STOCK
PURCHASE AGREEMENT

 

This
Stock Purchase Agreement (the “Agreement") is made and entered into as of 11 March, 2016, by and between Tempus Applied
Solutions Holdings, Inc., a Delaware corporation ("Buyer"), and B. Scott Terry, an individual and a resident of the
State of Virginia (“Seller") and, for the limited purposes set forth herein, Jackson River Aviation, LLC, with respect
to the common stock of Tempus Jets, Inc., a Delaware corporation (the "Company"). Buyer and Seller are each a “Party”
to this Agreement and are sometimes referred to hereinafter as the "Parties."

 

RECITALS

 

		A.	WHEREAS,
                                         the Company has conducted an air charter business (the “Business”) and holds
                                         an on-demand air carrier's operating certificate, Number 7EXA777M (the "Operating
                                         Certificate"), issued by the United States Federal Aviation Administration ("FAA")
                                         Richmond Flight Standards District Office ("FSDO") in accordance with the requirements
                                         of Parts 119 and 135 of the Federal Aviation Regulations ("FARs"); and

 

		B.	WHEREAS,
                                         Seller owns 100% of the voting units in the Company (the “Shares"), which
                                         Shares constitute all of the issued and outstanding voting and non-voting shares of the
                                         Company in all classes of share ownership whatsoever; and

 

		C.	WHEREAS,
                                         Jackson River Aviation, LLC is another holder of Seller’s and has an interest5
                                         in the appropriate disposition of the Company; and

		D.	WHEREAS,
                                         Seller wishes to sell and Buyer wishes to purchase all of the Shares in the Company,
                                         excluding all cash, accounts receivable, other assets and all liabilities, to be distributed
                                         to Seller immediately prior to Closing, but including, specifically, the Operating Certificate.

 

NOW,
THEREFORE, in consideration of the mutual covenants, agreements, representations, and warranties contained in this Agreement,
the Parties agree as follows:

 

		1.	PURCHASE
                                         AND SALE OF THE SHARES

 

		1.1	Purchase
                                         and Sale of the Shares. Subject to the terms and conditions set forth in this Agreement,
                                         on the Closing Date (defined below), Seller shall sell and transfer to Buyer, and Buyer
                                         shall purchase and receive from Seller, the Shares.

 

		1.2	Purchase
                                         Price. The purchase price for the Shares (the “Purchase Price”) shall be
                                         $500,000, payable in common shares of the Buyer.

 

		1.3	Payment
                                         of the Purchase Price. The Purchase Price shall be paid by the Buyer to the Seller as
                                         follows:

 

    	 	1	 

     

    

 

		1.3.1	At
                                         Closing, Buyer shall issue to Seller a number of its common shares equal to $500,000,
                                         divided by the volume weighted average share price of the Buyer common shares for the
                                         20 previous days that the common shares of the buyer were eligible to trade, prior to
                                         Closing (such number of Buyer’s common shares, the “Consideration Shares”).

 

		2.	EXCLUSIONS
                                         FROM SALE

 

		2.1	Company
Assets and Liabilities to be Distributed Pre-Closing. Buyer acknowledges, and hereby consents to, Seller’s plan to cause
the Company to distribute all of its assets and liabilities, excluding the Operating Certificate and the other Fundamental Assets
(as defined below) to Seller prior to Closing. Specifically, prior to Closing, Company shall distribute all balance sheet items
to the Seller with the exception of those described on Schedule 2.1 to this Agreement.

 

		2.2	No
                                         Other Contracts. On or before Closing, Seller shall cause the Company to terminate all
                                         of its other contracts and business arrangements in place as of such time.

 

		3.	REPRESENTATIONS
                                         AND WARRANTIES OF SELLER

 

Seller
represents and warrants:

 

		3.1	Organization,
                                         Standing, and Qualification of the Company. The Company is a corporation duly organized,
                                         validly existing and in good standing under the laws of Delaware and has all necessary
                                         powers to own its properties and to carry on its business as now owned and operated by
                                         it.

 

		3.2	Ownership
                                         of the Company.

 

		3.2.1	Capital
                                         Structure. The Company’s capital consists of one thousand (l,000) shares of common
                                         stock. The Shares constitute one hundred percent (100%) of the ownership interests of
                                         the Company in all classes whatsoever and there are no other issued shares of stock in
                                         the Company, whether common or preferred, and voting or non-voting.

 

		3.2.2	Validity.
                                         The Shares are validly issued, fully paid, and non-assessable, and have been issued in
                                         full compliance with all federal and state securities laws.

 

		3.2.3	Dilution.
                                         There are no outstanding subscriptions, options, rights, warrants, convertible securities,
                                         or other agreements or commitments obligating the Company to issue any additional stock
                                         and the Company shall not issue any additional stock prior to the Closing.

 

		3.2.4	Title
                                         to Outstanding Shares. Seller warrants that it has good and marketable title to, and
                                         is the sole and exclusive owner, beneficially and of record, of, the Shares, free and
                                         clear of all liens, encumbrances, security agreements, equities, options, claims, charges,
                                         and restrictions.

 

    	 	2	 

     

    

 

		3.3	FAA
                                         Certification. The Company holds Operating Certificate #7EXA777M issued by the FAA under
                                         Parts 119 and 135 of the FARs. The Operating Certificate is a basic or full (i.e., multi-aircraft)
                                         Part 135 certificate, good for world-wide and over-water operations and for the carriage
                                         of l 0 or more passengers. Seller warrants that the Operating Certificate is presently
                                         in effect and has not been revoked, and that the completion of the transactions contemplated
                                         hereunder shall not cause the Operating Certificate to fail to remain in effect or be
                                         revoked.

 

		3.4	Fundamental
                                         Assets. The Company’s assets being acquired as part of Buyer’s purchase of
                                         the Shares include the Operating Certificate; the Company’s FAA-required Operations
                                         Specifications (“Ops Specs”); required manuals and other documentation approved
                                         by the FAA in connection with the issuance of the Operating Certificate; the Company’s
                                         and Seller’s rights in and to the name “Tempus Jets”, and any logos
                                         and service marks, and any trademarks, trade names, fictitious business names, trade
                                         dress or other intellectual property rights associated with the name “Tempus Jets”
                                         and any similar names, including domain names; unused paper imprinted with the Tempus
                                         Jets letterhead, brochures, and any other marketing materials containing the Tempus Jets
                                         name; telephone, facsimile and data transmission lines and numbers that are specific
                                         to the Company; and the good will associated with the Company’s charter operations
                                         (collectively, the “Fundamental Assets”). The conveyance of the “Tempus
                                         Jets” World Wide Web domain name shall include the Internet Protocol address for
                                         the “Tempus Jets” website and the licensed rights to same and unlimited access
                                         to any password-protected sites for the storage of the Ops Specs, Part 135-required manuals
                                         and all other documentation a certificated carrier is required to maintain. Any conveyance
                                         or assignment of the Fundamental Assets to the Buyer shall be documented and implemented
                                         in accordance with applicable law, including, if applicable and without limitation, the
                                         procedures of the US Patent and Trademark Office.  Upon such conveyance and upon conveyance
                                         of the Shares, respectively, the Buyer shall have good and marketable title to the Fundamental
                                         Assets and the Shares, respectively, free and clear of restrictions on, or conditions
                                         to, transfer or assignment, and free and clear of mortgages, liens, pledges, charges,
                                         encumbrances, equities, claims, easements, rights of way, covenants, conditions, or restrictions,
                                         except for restrictions, prohibitions or conditions imposed by the FAA on the further
                                         transfer of the Operating Certificate and except for possible minor matters that, in
                                         the aggregate, are not substantial in amount and do not materially detract from or interfere
                                         with the present or intended use of any of these Fundamental Assets, nor materially impair
                                         the Company’s Business operations. No liabilities of the Seller shall be transferred
                                         to or assumed by the Company or the Buyer. As of the date hereof, Seller is not aware
                                         of any third party or adverse claim upon or regarding any of the Fundamental Assets.

 

		3.5	Absence
                                         of Liabilities. No liabilities of the Seller shall be transferred to the Company and
                                         Seller will cause any Liabilities of the Company to be transferred to the Seller prior
                                         to Closing.

 

		3.6	Contracts.
                                         To the extent there are any Contracts or similar obligations of the Company, Seller will
                                         assume all such obligations and Contracts and cause them to be transferred on or prior
                                         to Closing.

 

		3.7	Compliance
                                         with Law. To Seller’s knowledge, the Company is not in material violation of any
                                         applicable federal, state, or local statute, law or regulation, and Seller is not in
                                         material violation of any applicable federal, state, or local statute, law, or regulation,
                                         insofar as the Business and Fundamental Assets being transferred pursuant to this Agreement
                                         are concerned. Should any liability arise from any such violation, post-closing or otherwise,
                                         Seller shall indemnify Buyer as per Section 10.1 to follow.

 

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		3.8	Litigation
                                         and Claims. To Seller’s knowledge, there is no claim, suit, action, arbitration,
                                         or legal, administrative, or other proceeding, or governmental investigation pending
                                         or threatened against or affecting the Company or the Seller, or any of the Company’s
                                         Business, assets (including without limitation the Fundamental Assets), financial condition
                                         or business prospects, or which may affect the legality or feasibility of the transactions
                                         contemplated by this Agreement, or which may affect Buyer’s right to acquire the
                                         Shares or to operate the Company’s Business. Should any such liability arise post-closing
                                         or otherwise, Seller shall indemnify Buyer as per Section 10.1 to follow.

 

		3.9	Authority
                                         and Consent Seller has the right, power, legal capacity, and authority to enter into
                                         and perform its obligations under this Agreement, and no approvals or consents of any
                                         persons are necessary in connection with it.

 

		3.10	Absence
                                         of Brokers. Seller has not engaged the services of any broker or finder in connection
                                         with the sale of the Shares pursuant to this Agreement, and upon consummation of the
                                         transactions contemplated hereby, no fee or payment shall be due from Seller or the Company
                                         to any such broker or finder.

 

		3.11	Full
                                         Disclosure. None of the representations and warranties made by Seller in this Agreement
                                         contains any untrue statement of a material fact, or omits any material fact the omission
                                         of which would be misleading.

 

		3.12	No
                                         Violation; Compliance with Securities Laws. The execution and delivery of this Agreement
                                         (or any related instrument) by Seller does and will not, and the consummation of the
                                         transactions contemplated hereby and the performance by Seller of his obligations hereunder
                                         will not result in or constitute a breach of any order, consent, agreement or other obligation
                                         affecting Seller or to which Seller is a party. Seller understands that the Consideration
                                         Shares have not been registered under the Securities Act of 1933, as amended (“1933
                                         Act”), or under any applicable state securities laws. Seller further acknowledges
                                         and agrees that the offer and sale of the Consideration Shares to Seller hereunder is
                                         exempt from any such registration requirements. Seller understands that the Consideration
                                         Shares cannot be sold, assigned, or otherwise transferred unless they are subsequently
                                         registered under the 1933 Act and any applicable state securities laws or if an exemption
                                         from such registration or qualification is then available. Seller agrees to comply with
                                         all securities laws and regulations governing this transaction and any future disposition
                                         or transfer of the securities so that Seller does not cause, directly or indirectly,
                                         this transaction to violate any applicable securities laws.

 

		3.13	Continuing
                                         Validity of Representations and Warranties. All representations and warranties of Seller
                                         set forth in this Agreement will be true and correct as of the date of this Agreement
                                         and remain so continuously until the Closing. Seller shall promptly notify Buyer if any
                                         representation or warranty becomes untrue or incorrect.

 

    	 	4	 

     

    

 

		4.	BUYER’S
                                         REPRESENTATIONS AND WARRANTIES

 

Buyer
represents and warrants that:

 

		4.1	Organization,
                                         Standing and Qualification of Buyer. Buyer is duly organized, validly existing and in
                                         good standing under the laws of the State of Delaware, and has all necessary powers to
                                         own its properties and to carry on its business.

 

		4.2	Authority
                                         and Action. Buyer has the requisite power and authority to enter into this Agreement
                                         and to perform all of its obligations and consummate the transactions contemplated hereby.
                                         Buyer has taken or will take prior to Closing, all necessary and appropriate company
                                         actions to authorize, execute and deliver this Agreement and to consummate the transactions
                                         contemplated hereby. This Agreement constitutes a legal, valid and binding obligation
                                         of the Buyer, enforceable against the Buyer in accordance with its terms. At the Closing,
                                         all other documents required to be executed and delivered by Buyer in connection with
                                         such Closing will be duly authorized and will, when executed and delivered, constitute
                                         legal, valid and binding obligations of the Buyer, enforceable against the Buyer in accordance
                                         with their terms.

 

		4.3	No
                                         Violation; Compliance with Securities Laws. The execution and delivery of this Agreement
                                         (or any related instrument) by Buyer does and will not, and the consummation of the transactions
                                         contemplated hereby and the performance by Buyer of its obligations hereunder will not,
                                         violate, breach or conflict with any organizational documents of Buyer, result in or
                                         constitute a breach of any order, consent, agreement or other obligation affecting Buyer
                                         or to which Buyer is a party. Buyer understands that the Shares have not been registered
                                         under the 1933 Act, or under any applicable state securities laws, and that Seller has
                                         no obligation to register such Shares or the offer of the Shares to Buyer. Buyer further
                                         acknowledges and agrees that the offer and sale of the Shares to Buyer hereunder is exempt
                                         from any such registration requirements. Buyer understands that the Shares cannot be
                                         sold, assigned, or otherwise transferred unless they are subsequently registered under
                                         the 1933 Act and any applicable state securities laws or if an exemption from such registration
                                         or qualification is then available. Buyer agrees to comply with all securities laws and
                                         regulations governing this transaction and any future disposition or transfer of the
                                         securities so that Buyer does not cause, directly or indirectly, this transaction to
                                         violate any applicable securities laws.

 

		4.4	Absence
                                         of Brokers. Buyer has not engaged the services of any broker or finder in connection
                                         with the sale of the Shares pursuant to this Agreement, and upon consummation of the
                                         transactions contemplated hereby, no fee or payment shall be due from Buyer or the Company
                                         to any such broker or finder.

 

		4.5	Full
                                         Disclosure. None of the representations and warranties made by Buyer in this Agreement
                                         contains any untrue statement of a material fact, or omits any material fact the omission
                                         of which would be misleading.

 

		4.6	Continuing
                                         Validity of Representations and Warranties. All representations and warranties of Buyer
                                         set forth in this Agreement will be true and correct as of the date of this Agreement
                                         and remain so continuously until the Closing. Buyer shall promptly notify Seller if any
                                         representation or warranty becomes untrue or incorrect.

 

    	 	5	 

     

    

 

		5.	SELLER’S
                                         OBLIGATIONS BEFORE CLOSING

 

Seller
makes the following covenants only for the period (the “Pre-Closing Covenant Period’’) commencing on the date
of this Agreement and ending on the earlier to occur of (a) the Closing Date, or (b) thirty (30) days following the date of this
Agreement (the “Expiration Date”):

 

		5.1	Operation
                                         of Company. Seller shall not cause the Company to assume any liabilities or obligations
                                         other than those normally incurred in the day-to-day operations of the Business without
                                         Buyer’s express prior written approval. Further, Seller shall not cause the Company
                                         to assume any liabilities or obligations that shall bind the Company beyond the Closing
                                         Date, except to the extent such liabilities or obligations will be assumed by Seller
                                         with effect from and after Closing. Seller will bring all employee compensation, including
                                         any accrued benefits, and trade payables current as of the Closing Date and shall be
                                         responsible for payment or reimbursement of any such expenses that the Company incurs
                                         after Closing, but which arose prior to the Closing Date. Except in connection with the
                                         distribution of assets and liabilities contemplated under Section 2.1 hereof, Seller
                                         shall not sell, transfer, assign, encumber, pledge or otherwise convey to any person
                                         other than Buyer any right, title or interest in the Company or any portion thereof.
                                         Until Closing, Seller shall not cause the Company to act or fail to act in any way that
                                         would place at risk the Operating Certificate.

 

		5.2	Office
                                         and Business Facilities. Nothing contained herein shall be understood or construed to
                                         obligate Buyer to assume any continuing responsibility for the use, rental or operation
                                         of any office, hangar or other facility whatsoever, or for any services associated with
                                         any such facilities, and unless otherwise agreed to in writing by Buyer, Seller shall
                                         continue to bear sole responsibility for any such obligations after Closing or shall
                                         arrange for their termination as of the Closing Date.

 

		5.3	Required
                                         Positions. Seller shall cause the Company to retain those Company employees necessary
                                         and appropriate for operation of the Business and to pay all salaries and benefits owing
                                         to such employees. After the Closing, Buyer shall be responsible for salary and benefits
                                         of any continuing employees. Seller will cause the Company to maintain properly qualified
                                         management personnel in those positions required of a Part 135 certificate holder under
                                         FAR § 119.69(a) (sometimes referred to hereinafter as the “Required Positions”)
                                         and to pay their costs of employment, including salaries, withholding and other taxes
                                         and any benefits, incurred up to the Closing. If the Company elects, for any reason whatsoever,
                                         to terminate the employment of any person holding any of the Required Positions prior
                                         to Closing, Seller shall consult Buyer concerning that person’s replacement. Buyer
                                         shall have no duty, post-Closing, to continue to employ those employees employed by Seller.

 

		6.	CONDITIONS
                                         PRECEDENT TO BUYER’S PERFORMANCE

 

The
obligations of Buyer to purchase the Shares under this Agreement are subject to the satisfaction, at or before the Closing, of
all the conditions set forth in this Section. Buyer may waive in writing any or all of these conditions in whole or in part without
prior notice; provided, however, that no such waiver of a condition shall constitute a waiver by Buyer of any of its other rights
or remedies, at law or in equity, if Seller shall be in default of any representations, warranties, or covenants under this Agreement.

 

		6.1	Accuracy
                                         of Seller’s Representations and Warranties. Except as otherwise permitted by this
                                         Agreement, all representations and warranties by Seller in this Agreement, or in any
                                         written statement that shall be delivered to Buyer by Seller or its agents pursuant to
                                         this Agreement, shall be continually true and correct at all times from the date of this
                                         Agreement until and including the Closing Date as though made at that time.

 

    	 	6	 

     

    

 

		6.2	Operating
                                         Certificate. The Operating Certificate shall be in effect at all times up to and including
                                         the Closing Date.

 

		6.3	Fundamental
                                         Assets. Title to the Fundamental Assets shall remain in the Company at all times up to
                                         and including the Closing Date.

 

		6.4	Performance
                                         by Seller. Seller shall have performed, satisfied, and complied with all covenants, agreements,
                                         deliveries, and conditions required by this Agreement to be performed, complied with,
                                         or satisfied by Seller on or before the Closing Date.

 

		6.5	Approval
                                         of Documentation. The form and substance of all certificates, instruments, opinions,
                                         and other documents delivered to Buyer under this Agreement shall be satisfactory in
                                         all reasonable respects to Buyer and Buyer’s counsel.

 

		6.6	Approval
                                         of the Independent Board Members of the Buyer. The Independent members of the Board of
                                         Directors of the Buyer shall have approved the transaction.

 

		7.	CONDITIONS
                                         PRECEDENT TO SELLER’S PERFORMANCE

 

The
obligations of Seller to sell the Shares under this Agreement is subject to the satisfaction, at or before the Closing, of all
of the conditions set forth in this Article. Seller may waive in writing any or all of these conditions in whole or in part without
prior notice; provided, however, that no such waiver of a condition shall constitute a waiver by Seller of any other rights or
remedies, at law or in equity, if Buyer should be in default of any of its representations, warranties, or covenants under this
Agreement.

 

		7.1	Accuracy
                                         of Buyer’s Representations and Warranties. Except as otherwise permitted by this
                                         Agreement, all representations and warranties by Buyer in this Agreement, or in any written
                                         statement that shall be delivered to Seller or its agents pursuant to this Agreement,
                                         shall be continually true and correct at all times from the date of this Agreement until
                                         and including the Closing Date as though made at that time.

 

		7.2	Performance
                                         by Buyer. Buyer shall have performed, satisfied and complied with all covenants, agreements,
                                         deliveries and conditions required by this Agreement to be performed, complied with,
                                         or satisfied by Buyer on or before the Closing.

 

		7.3	Approval
                                         of Documentation. The form and substance of all certificates, instruments, opinions,
                                         and other documents delivered to Seller under this Agreement shall be satisfactory in
                                         all reasonable respects to Seller and Seller’s counsel.

 

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		8.	THE
                                         CLOSING

 

		8.1	Time
                                         and Place. The sale of the Shares (the “Closing”) shall take place within
                                         three (3) Business Days after the conditions precedent to Closing set forth in this Agreement
                                         have been satisfied, unless Buyer and Seller may otherwise agree in writing. The date
                                         upon which the Closing occurs shall be the “Closing Date”. For purposes of
                                         this Agreement, the term “Business Day” is understood to mean any day when
                                         the FAA’s offices in Richmond, VA are open for service to the general public, but
                                         excludes Saturdays, Sundays and holidays observed by the United States federal government.

 

		8.2	Seller’s
                                         Obligations at Closing. At the Closing, Seller shall deliver to Buyer the following items,
                                         in form and substance satisfactory to Buyer and its counsel, against delivery of the
                                         items to be delivered by Buyer and the Company:

 

		8.2.1.1	Assignment
                                         of Shares.  An assignment of the certificate(s) evidencing the Shares;

 

		8.2.1.2	Fundamental
                                         Assets. Physical or electronic custody of the Fundamental Assets.

 

		8.2.1.3	Company
                                         Books and Records. The organizational documents of the Company and all of the other books
                                         and records of the Company, including without limitation pertaining to the Fundamental
                                         Assets and any other assets and obligations of the Company being transferred to Buyer
                                         upon Closing;

 

		8.2.1.4	Orders
                                         Affecting the Company. Copies of all permits, orders, consents or exemptions issued by
                                         any regulatory agency with respect to the Company, or any security of it, and all applications
                                         for such permits, orders, consents and exemptions.

 

		8.2.1.5	Conveyance
                                         Documentation. Any documentation reasonably required by Buyer to evidence the assignment
                                         and conveyance of the Fundamental Assets to the Company.

 

		8.3	Buyer’s
                                         Obligations at Closing. At the Closing, Buyer shall deliver the Purchase Price as provided
                                         in Section 1.3 of this Agreement.

 

		9.	SELLER’S
                                         OBLIGATIONS AFTER CLOSING

 

		9.1	Indemnity.
                                         Each of Seller and Jackson River Aviation, LLC (collectively, the “Indemnitors”)
                                         shall, jointly and severally, indemnify, defend, and hold harmless Buyer against and
                                         in respect of any and all liability, claims, demands, losses, costs, expenses, obligations,
                                         liabilities, damages, recoveries, and deficiencies, including interest, penalties, and
                                         reasonable professional and attorney’s fees, including those arising from settlement
                                         negotiations, that Buyer shall incur or suffer, which arise, result from, or relate to
                                         any breach of, or failure by Seller to perform, any of Seller’ representations,
                                         warranties, covenants, or agreements in this Agreement or in any schedule, certificate,
                                         exhibit or other instrument furnished or to be furnished by Seller under this Agreement.
                                         Each of the Indemnitors shall, jointly and severally, fully indemnify Buyer for liabilities
                                         or claims arising from the term of Seller’s ownership of the Company. Buyer shall
                                         promptly notify the Indemnitors of the existence of any claim, demand, or other matter
                                         to which the Indemnitors’ indemnification obligations would apply and shall give
                                         the Indemnitors a reasonable opportunity to defend the same at the Indemnitors’
                                         own expense and with counsel of their own selection; provided that Buyer shall at all
                                         times also have the right to fully participate in the defense at Buyer’s expense.
                                         If the Indemnitors shall fail to defend, Buyer shall have the right, but not the obligation,
                                         to undertake the defense of, and to compromise or settle, the matter (exercising reasonable
                                         business judgment) at the Indemnitors’ risk and expense. The Indemnitors shall
                                         reimburse Buyer for all amounts due under this Section on a monthly basis upon presentation
                                         of invoice therefor. If the claim is one that cannot by its nature be defended solely
                                         by the Indemnitors, then Buyer shall make available and cause the Company to make available
                                         all information and assistance that the Indemnitors may reasonably request at the Indemnitors’
                                         sole cost and expense. The duty of the Indemnitors to indemnify Buyer shall survive Closing.

 

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		9.2	Compliance
                                         with Securities Laws. Seller shall comply with all applicable securities laws to insure
                                         that the transactions contemplated by this Agreement meet the requirements of such laws
                                         and regulations.

 

		10.	BUYER’S
                                         OBLIGATIONS AFTER CLOSING

 

		10.1	Buyer’s
                                         Indemnity. Buyer shall indemnify, defend, and hold harmless  Seller against and in respect
                                         of any and all liability, claims, demands, losses, costs, expenses, obligations, liabilities,
                                         damages, recoveries, and deficiencies, including interest, penalties, and reasonable
                                         professional and attorney’s fees, including those arising from settlement negotiations
                                         that Seller shall incur or suffer, which arise, result from, or relate to any breach
                                         of, or failure by Buyer to perform, any of Buyer’s representations, warranties,
                                         covenants, or agreements in this Agreement or in any schedule, certificate, exhibit or
                                         other instrument furnished or to be furnished by Buyer under this Agreement. Buyer assumes
                                         responsibility for all obligations and liabilities of the Company arising after the Closing
                                         Date which are not attributable to an act or omission of Seller during Seller’s
                                         term of ownership. Buyer expressly does not indemnify Seller for any act or omission
                                         giving rise to liability during the term of Seller’s ownership of the Company.
                                         Seller shall promptly notify Buyer of the existence of any claim, demand, or other matter
                                         to which Buyer’s indemnification obligations would apply and shall give Buyer a
                                         reasonable opportunity to defend the same at Buyer’s own expense and with counsel
                                         of its own selection; provided that Seller shall at all times also have the right to
                                         fully participate in the defense at Seller’s expense.  If Buyer shall fail to defend,
                                         Seller shall have the right, but not the obligation, to undertake the defense of, and
                                         to compromise or settle, the matter (exercising reasonable business judgment) at Buyer’s
                                         risk and expense. Buyer shall reimburse Seller for all amounts due under this Section
                                         on a monthly basis upon presentation of invoice therefor. If the claim is one that cannot
                                         by its nature be defended solely  by Buyer, Seller shall make  available  all information
                                         and assistance  that Buyer  may reasonably request at Buyer’s sole cost and expense.
                                         The duty of Buyer to indemnify Seller shall survive Closing.

 

		10.2	Compliance
                                         with Securities Laws. Buyer shall comply with all applicable securities laws to insure
                                         that the transaction contemplated by this Agreement meets the requirements of such laws
                                         and regulations.

 

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		11.	TERMINATION
                                         AND REMEDIES

 

		11.1	Termination
                                         by Agreement of the Parties. If the Parties determine prior to the Closing Date that
                                         the transactions contemplated in this Agreement cannot be completed for reasons beyond
                                         the reasonable control of the Parties or that the essential purpose of the transaction
                                         will be frustrated (e.g., the FAA revokes the Operating Certificate, Buyer will not obtain
                                         all right, title and interest in the Operating Certificate) or if Closing has not occurred
                                         on or before the Expiration Date, then the Parties shall terminate the Agreement and
                                         cancel the transactions contemplated herein, and neither Party shall have any other claims
                                         against each other under the Agreement.

 

		11.2	Termination
                                         upon Default. If either Party materially defaults in the due and timely performance of
                                         any of its obligations under this Agreement, the non-defaulting Party or Parties may
                                         terminate this Agreement after ten days’ notice to the defaulting Party, which
                                         specifies with particularity the default or defaults, and such default is not cured within
                                         such ten-day period. The remedies set forth in this Section 11.2 shall be the sole and
                                         exclusive remedy of the Parties for any default prior to Closing.

 

		11.3	Termination
                                         upon Delay beyond the Expiration Date. This Agreement shall be subject to termination
                                         by either Party in the event the conditions required for Closing have not yet been satisfied
                                         on or before the Expiration Date.

 

		12.	MISCELLANEOUS

 

		12.1	Disclosures
                                         to Third Parties. All information concerning the transactions contemplated by this Agreement
                                         is confidential business information and shall not be disclosed to third parties without
                                         the prior written approval of all of the Parties, except as may be required by law. All
                                         Parties shall take reasonable precautions to assure that’ all such information
                                         remains confidential. All notices to third parties and all publicity concerning the transactions
                                         contemplated by this Agreement shall be jointly planned and coordinated by and between
                                         Buyer and Seller.

 

		12.2	Expenses.
                                         The Parties agree to bear their respective expenses, including, but not limited to accounting,
                                         legal and other professional fees, incurred with respect to this Agreement and the transactions
                                         contemplated by it.

 

		12.3	Assignment.
                                         Except as provided herein, the rights and obligations of the Parties under this Agreement
                                         may not be assigned or assumed without the written consent of all Parties. Any attempt
                                         to so transfer same shall be void ab initio.

 

		12.4	Binding
                                         Effect. This Agreement shall be binding on, and shall inure to the benefit of the Parties
                                         to it and their respective heirs, legal representatives, successors and any permitted
                                         assigns.

 

		12.5	Parties
                                         in Interest. Except as expressly provided in this Agreement, nothing in this Agreement,
                                         whether express or implied, is intended to confer any rights or remedies under or by
                                         reason of this Agreement on any person other than the Parties to it and their respective
                                         successors and assigns, nor is anything in this Agreement intended to relieve or discharge
                                         the obligation or liability of any third person to any Party to this Agreement, nor shall
                                         any provision give any third person any right to subrogation or action against any Party
                                         to this Agreement.

 

    	 	10	 

     

    

 

		12.6	Entire
                                         Agreement. This Agreement and the other documents to be executed to implement its provisions
                                         together constitute the entire agreement between the Parties pertaining to the subject
                                         matter contained in them and supersedes all prior and contemporaneous agreements, representations
                                         and understandings of the Parties.

 

		12.7	Amendment.
                                         No supplement, modification, or amendment of this Agreement shall be binding unless executed
                                         in writing by all the Parties.

 

		12.8	Waiver.
                                         No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute
                                         a waiver of any other provision, whether or not similar, nor shall any waiver constitute
                                         a continuing waiver. No waiver shall be binding unless executed in writing by the Party
                                         making the waiver.

 

		12.9	Timeliness.
                                         Time is of the essence in this Agreement and all of its provisions.

 

		12.10	Notices.
                                         Notices given under this Agreement shall be in writing and shall either be served personally
                                         or delivered by first class U.S. Mail, postage prepaid, or by other reliable common carrier,
                                         such as FedEx. Notices may also effectively be given by transmittal over electronic transmitting
                                         devices such as facsimile machine if the Party to whom the notice is being sent has such
                                         a device in its office, provided a complete copy of any notice so transmitted shall also
                                         be mailed in the same manner as required for a mailed notice. Notices shall be deemed
                                         received at the earlier of actual receipt or three days following deposit in U.S. Mail,
                                         postage prepaid. Notices shall be directed to the Parties at their respective addresses
                                         shown below. A Party may change its address for notice by giving written notice to all
                                         other Parties in accordance with this Section.

 

To
Seller:

B.
Scott Terry

Tempus
Jets, Inc.

333
Scotland Street

Williamsburg,
VA 23185

 

To
Buyer:

Tempus
Applied Solutions Holdings, Inc.

133
Waller Mill Road 

Williamsburg,
VA 23185

Attn:
Bev Castonguay

Telephone:
757-875-7779

 

To
Jackson River Aviation, LLC:

133
Waller Mill Road

Williamsburg,
VA 23185

 

		12.11	Governing
                                         Law and Venue. This Agreement shall be construed in accordance with, and governed by,
                                         the laws of the Commonwealth of Virginia, and any action or proceeding, including arbitration,
                                         brought by any Party in which this Agreement is a subject, shall be brought in Virginia.

 

    	 	11	 

     

    

 

		12.12	Effect
                                         of Headings. The headings of the Articles and Sections of this Agreement are included
                                         for purposes of convenience only, and shall not affect the construction or interpretation
                                         of any of its provisions.

 

		12.13	Invalidity.
                                         Any provision of this Agreement which is invalid, void, or illegal, shall not affect,
                                         impair, or invalidate any other provision of this Agreement, and such other provisions
                                         of this Agreement shall remain in full force and effect.

 

		12.14	Counterparts.
                                         This Agreement may be executed simultaneously in one or more counterparts, each of which
                                         shall be deemed an original, but all of which together shall constitute one and the same
                                         instrument.

 

		12.15	Number
                                         and Gender. When required by the context of this Agreement, each number (singular and
                                         plural) shall include all numbers, and each gender shall include all genders.

 

		12.16	Joint
                                         and Several Liability. In the event either Party now or hereafter shall consist of more
                                         than one person, firm, or corporation, then and in such event, all such persons, firms
                                         or corporations shall be jointly and severally liable as Parties under this Agreement.

 

		12.17	Further
                                         Assurances. Each Party to this Agreement agrees to execute further instruments as may
                                         be necessary or desirable to carry out this Agreement, provided the Party requesting
                                         such further action shall bear all related costs and expenses.

 

		12.18	Advice
                                         of Professionals. Each Party has had the opportunity to be advised by legal counsel and
                                         other professionals in connection with this Agreement, and each Party has obtained such
                                         advice as each Party deems appropriate.

 

		12.19	Negotiated
                                         Terms. The Parties agree that the terms and conditions of this Agreement are the result
                                         of negotiations between the Parties and that this Agreement shall not be construed in
                                         favor of or against any Party by reason of the extent to which any Party or its professionals
                                         participated in its preparation.

 

		12.20	Professional
                                         Fees and Costs. If any legal or equitable action, arbitration, or other proceeding, whether
                                         on the merits or on motion, are brought or undertaken, or an attorney retained, to enforce
                                         this Agreement, or because of an alleged dispute, breach, default, or misrepresentation
                                         in connection with any of the provisions of this Agreement, then the successful or prevailing
                                         Party or Parties in such undertaking (or the Party that would prevail if an action were
                                         brought) shall be entitled to recover reasonable attorney’s and other professional
                                         fees and other costs incurred in such action, proceeding, or discussions, in addition
                                         to any other relief to which such Party may be entitled. The Parties intend this provision
                                         to be given the most liberal construction possible and to apply to any circumstances
                                         in which such Party reasonably incurs expenses.

 

    	 	12	 

     

    

 

		12.21	Effectiveness.
                                         This Agreement shall be dated and effective upon execution of this Agreement (or one
                                         or more of its counterparts) by all of the Parties.

 

		12.22	Force
                                         Majeure. The occurrence of any of the following events shall excuse such obligations
                                         of the Parties as are rendered impossible or unreasonably impracticable for so long as
                                         such event continues; or the Party who is not so obligated may elect to terminate this
                                         Agreement with no further obligation on the part of either Party under this Agreement
                                         to complete its performance: strikes; lockouts; labor disputes; acts of God; inability
                                         to obtain labor, materials or reasonable substitutes therefor, governmental restrictions,
                                         regulations or controls; judicial orders; enemy or hostile governmental action; civil
                                         commotion; fire or other casualty; and other causes beyond the reasonable control of
                                         the Party obligated to perform.

 

		12.23	Access
                                         to Records after Closing. Buyer and Seller agree to preserve all records relating to
                                         the sale and transactions contemplated by this Agreement for six (6) years after the
                                         Closing. Upon reasonable notice, each Party shall allow representatives of the other
                                         access to such records and the making of copies thereof during regular business hours
                                         at such Party’s place of business for the following purposes:

 

		12.23.1	To
                                                                                                                                                                                                                                                                                                                                                            gather                                          information for preparing tax returns;

 

		12.23.2	To
                                                                                                                                                                                                                                                                                                                                                            verify                                          any of the representations or warranties contained in this Agreement, or
                                                                                                                                                                                                                                                                                                                                                            obtain further                                          assurances regarding same;

 

		12.23.3	To
                                                                                                                                                                                                                                                                                                                                                            comply                                          with any audit, request, subpoena, or other investigative demand by any
                                                                                                                                                                                                                                                                                                                                                            government authority;                                          and to prepare for other legitimate purposes not injurious to
                                                                                                                                                                                                                                                                                                                                                            the other Party and not                                          related to prospective competition by such Party with the
                                                                                                                                                                                                                                                                                                                                                            other Party.

 

    	 	13	 

     

    

 

IN
WITNESS WHEREOF, the Parties to this Agreement have duly executed it as of the date first written above.

 

	SELLER:	 
	 	 
	B. Scott Terry	 
	 	 
	/s/ B. Scott Terry	 
	 	 
	BUYER:	 
	 	 
	Tempus Applied Solutions Holdings, Inc.	 
	 	 
	By:	/s/ R. Lee Priest	 
	Name:	R. Lee Priest	 
	Title:	Chief Financial Officer	 
	 	 
	Solely
    for purposes of Sections 9.1 and 12:	 
	 	 
	Jackson River Aviation, LLC	 
	 	 
	By:	/s/ B. Scott Terry	 
	Name:	B. Scott Terry	 
	Title:	Manager	 

 

    	 	14	 

     

    

 

Schedule
2.1

Company
Assets & Liabilities to be acquired by the Buyer

 

ASSETS

	Total Current Assets	 	$	-	 
	 	 	 	 	 
	Fixed Assets	 	 	 	 
	Total Fixed Assets	 	$	-	 
	 	 	 	 	 
	Other Assets	 	 	 	 
	Intangible Asset	 	$	500,000	 
	Total Other Assets	 	$	500,000	 
	 	 	 	 	 
	TOTAL ASSETS	 	$	500,000	 
	 	 	 	 	 
	LIABILITIES & EQUITY	 	 	 	 
	 	 	 	 	 
	Liabilities	 	 	 	 
	 	 	 	 	 
	Total Current Liabilities	 	$	-	 
	Total Long Term Liabilities	 	$	-	 
	 	 	 	 	 
	Total Liabilities	 	$	-	 
	 	 	 	 	 
	Equity	 	 	 	 
	Total Equity	 	$	500,000	 
	 	 	 	 	 
	TOTAL LIABILITIES & EQUITY	 	$	500,000	 

 

 

15Exhibit

Exhibit 10.8
TEMPLATE – EXECUTIVE OFFICER

Glowpoint, Inc. 
2014 Equity Incentive Plan

Performance-Vested Restricted Stock Unit Agreement

Glowpoint, Inc., a Delaware corporation (the “Company”), pursuant to its 2014 Equity Incentive Plan, as amended from time to time (the “Plan”), hereby grants to the holder listed below (“Participant”), the restricted stock units set forth below (individually and collectively referred to as the “Restricted Stock Units”). The grant is subject to and governed by the Plan generally, and all capitalized terms not defined herein shall have the meanings given to such terms in the Plan.
Notice of Restricted Stock Unit Award
	
		
	Participant
	[__________]

	Grant Date
	[__________]

	Target Restricted Stock Units
	[__________]

	Overview
	Participant shall be able to earn between [__]% - [__]% of the Target Restricted Stock Units based on the attainment of certain performance goals over the Measuring Period described below.

	Measuring Period
	[______].

	Vesting, General
	Vesting, if any, shall occur at the end of the Measuring Period based upon the [______] (defined below) and [______] (defined below) of the Company during such Measuring Period.  Except as set forth below, Participant must remain in the continuous employment of the Company from the Grant Date through the last day of the Measurement Period in order to vest in the Restricted Stock Units.

	Target Vesting Amounts for the Measurement Period
	The Target Restricted Stock Units shall be divided into amounts that shall be eligible to vest based on [______] for the Measuring Period, and amounts that shall vest based on [______] for the Measuring Period, by multiplying the Target Restricted Units by the following weightings:
[______] .................................[__%] 
[______] .................................[__%]
The Target Restricted Stock Units that shall be eligible to vest based on [______] for the Measuring Period shall be known as the “[______] Target RSUs.”   
The Target Restricted Stock Units that shall be eligible to vest based on [______] for the Measuring Period shall be known as the “[______] Target RSUs.”   

	Amounts Vesting Based on [______]
	The number of Restricted Stock Units actually vesting at the end of the Measuring Period based on [______] for the Measuring Period (the “[______] Vested RSUs”) shall be equal to the [______] Target RSUs for such Measuring Period multiplied by the “Vesting Percentage” determined in accordance with the following chart: [______]

13526406.4

	
		
	Amounts Vesting Per Measuring Period Based on [______]
	The number of Restricted Stock Units actually vesting at the end of the Measuring Period based on [______] for the Measuring Period (the “[______] Vested RSUs”) shall be equal to the [______] Target RSUs for such Measuring Period multiplied by the “Vesting Percentage” determined in accordance with the following chart: [______]

	Total Amount Vested Per Measuring Period
	The total number of Restricted Stock Units vested at the end of each Measuring Period (the “Total Vested RSUs”) shall be the sum of the [______] Vested RSUs plus the [______] Vested RSUs.

	Vesting Determinations
	The vesting results for a Measuring Period shall be certified in writing by the Administrator no later than the March 15th next following the end of such Measuring Period.

	[______] and Target [______]
	“[______]” shall mean [______] for the Measuring Period as reported on the Company’s Form 10-K.
“Target [______]” for the Measuring Period shall be: [______]

	[______] and Target [______]
	“[______]” shall mean gross [______] for the Measuring Period as reported on the Company’s Form 10-K.
“Target [______]” for each Measuring Period shall be: [______]

	Special Vesting Events
	Termination of Continuous Employment
In the event of the termination of Participant’s continuous employment by the Company without “cause” (as defined in the Plan), Participant shall be eligible to vest in a pro-rata number of Restricted Stock Units at the end of the Measuring Period, in an amount equal to (i) the Total Vested RSUs for the Measuring Period, multiplied by (ii) a fraction, (x) the numerator of which is the number of days Participant remained in continuous employment from the start of the Measuring Period through the date of termination (if any), and (y) the denominator of which is 365.
Death or Disability
In the event of the termination of Participant’s continuous employment with the Company on account of Participant’s death or Disability, Participant shall be eligible to vest in a pro-rata number of Restricted Stock Units at the end of the Measuring Period, in an amount equal to (i) the Total Vested RSUs for the Measuring Period, multiplied by (ii) a fraction, (x) the numerator of which is the number of days Participant remained in continuous employment from the start of the Measuring Period through the date of Participant’s death or Disability (if any), and (y) the denominator of which is 365.  “Disability” shall have the meaning set forth in Treasury Regulation Section 1.409A-3(i)(4).

	Payment
	The Company shall issue to Participant one share of Common Stock for each Restricted Stock Unit that vests hereunder, with the delivery of such Common Stock to occur as soon as reasonably practicable following the certification of results for the Measuring Period, but in all events payment shall be made no more than seventy-four (74) days following the last day of the Measuring Period.

2
2

	
		
	Change in Control
	Following a Special Vesting Event
Notwithstanding anything herein to the contrary, in the event of a Change in Control following the occurrence of a Special Vesting Event, the Measuring Period shall be deemed to have ended as of the date of the Change in Control, and the pro-rated number of Restricted Stock Units vested upon the Change in Control shall be equal to (i) the Target Restricted Stock Units, multiplied by (ii) a fraction, (x) the numerator of which is the number of days Participant remained in continuous employment from the start of the Measuring Period through the date of the Special Vesting Event (if any), and (y) the denominator of which is 365.  The Company shall issue to Participant one share of Common Stock for each Restricted Stock Unit that vests upon the Change in Control, and payment shall be made on or within 74 days following the Change in Control.  
During Employment
In the event of a Change in Control while Participant is in the continuous employment of the Company: (i) the successor or acquirer in the Change in Control shall provide for the assumption or continuation of the Restricted Stock Units or the substitution of new awards denominated in cash or stock units covering publicly traded shares of the successor or acquirer (or direct or indirect parent thereof), in either case having an intrinsic value equal to the Fair Market Value of a number of shares of Common Stock equal to the Target Restricted Stock Units on the date of the Change in Control (the “Replacement Award”), (ii) all performance-vesting criteria shall cease to have further force or effect and the Participant shall vest in the Replacement Award based solely on the Participant’s continued employment with the successor or acquirer (or affiliate thereof), (iii) vesting in the Replacement Award shall occur based on continued employment with the acquirer or successor (or affiliate thereof) through the soonest to occur of (A) the 12 month anniversary of the Change in Control, (B) the end of the originally scheduled Measurement Period, or (C) the Participant’s termination of employment from the successor or acquirer (or affiliate thereof) without “cause” (as defined in the Plan), or as a result of the Participant’s death or Disability (as defined herein).  Payment of the vested Replacement Award shall occur within 74 days of the vesting of such award.  For avoidance of doubt, termination of employment with the successor or acquirer (or affiliate thereof) that does not result in the vesting of the Replacement Award will result in the forfeiture of any unvested portion of such Replacement Award.
Notwithstanding the preceding paragraph, if, for any reason, the acquirer of successor fails to make the Replacement Award, the Participant shall become immediately vested upon the Change in Control in a number of RSUs equal to the Target Restricted Stock Units, and payment in respect of same (consisting of one share of Common Stock for each vested RSU) shall occur within 74 days of the Change in Control.

3
3

	
		
	Dividend Equivalent Right
	Participant shall be entitled upon the vesting of any Restricted Stock Units to receive an additional amount in cash equal to the value of all dividends and distributions made between the Grant Date and the vesting date with respect to a number of shares of Common Stock equal to the number of Restricted Stock Units vesting on such date (the “Dividend Equivalent Amounts”).  The Dividend Equivalent Amounts shall be accumulated and paid on the date on which the Restricted Stock Units to which they relate are paid.

	Stockholder Rights
	Participant has no stockholder rights with respect to the Restricted Stock Units.

	Other Terms and  Conditions
	Are set forth in the accompanying Restricted Stock Unit Grant Terms and Conditions and the Plan.

By executing this letter below, Participant and the Company agree that the Restricted Stock Units granted hereby are granted under and governed by the terms and conditions of the Plan and this Performance-Vested Restricted Stock Unit Agreement (including this Notice of Restricted Stock Unit Award and the accompanying Restricted Stock Unit Terms and Conditions) (the “Grant Documents”).  Participant hereby represents and acknowledges that he or she has been provided the opportunity to review the Plan and the Grant Documents in their entirety, and Participant hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the Administrator upon any questions relating to the Plan and the Grant Documents.

4
4

IN WITNESS WHEREOF, the parties have executed this Performance-Vested Restricted Stock Unit Agreement, effective as of the day and year first above written.

GLOWPOINT, INC.                    GRANTEE

_____________________________            _____________________________
Name, Title            Date            Signature            Date 

5
5

Restricted Stock Unit Terms and Conditions

The following terms and conditions apply to the Restricted Stock Units granted to Participant by the Company, as specified in the accompanying Notice of Restricted Stock Unit Award.
1.    Grant of Restricted Stock Units.  The Company has issued to Participant the Restricted Stock Units set forth above in the Notice of Restricted Stock Unit Award, effective on the Grant Date, and subject to the terms and conditions set forth in the Notice of Restricted Stock Unit Award, these Restricted Stock Unit Terms and Conditions, and the Plan (which is incorporated herein by reference).
2.    Restricted Stock Units Non-Transferable.  Restricted Stock Units (and related rights) may not be sold, assigned, transferred by gift or otherwise, pledged, hypothecated, or otherwise disposed of, by operation of law or otherwise.
3.     Vesting.  Unless otherwise provided in the Plan, Participant’s Restricted Stock Units shall vest in accordance with the terms and conditions set forth in the Notice of Restricted Stock Unit Award. 
4.    Payment.  Payment in respect of vested Restricted Stock Units shall be made at the time(s) and in the form(s) set forth in the Notice of Restricted Stock Unit Award.
5.    Termination of Employment; Forfeiture.  Upon the termination of Participant’s continuous employment with the Company or its Subsidiaries for any reason, any Restricted Stock Units that have not vested or that are not entitled to continued vesting in accordance with Paragraph 3 and the Notice of Restricted Stock Unit Award shall immediately be forfeited.  Upon forfeiture, Participant shall have no further rights with respect to such Restricted Stock Units and related Dividend Equivalent Amounts. 
6.    Tax Treatment; Section 409A.  Participant may incur tax liability as a result of the receipt of Restricted Stock Units and payments thereunder.  Participant should consult his or her own tax adviser for tax advice.   Participant acknowledges that the Administrator, in the exercise of its sole discretion and without Participant’s consent, may amend or modify the Grant Document in any manner, and delay the payment of any amounts thereunder, to the minimum extent necessary to satisfy the requirements of Section 409A of the Code.  The Company will provide Participant with notice of any such amendment or modification.  This Section does not, and shall not be construed so as to, create any obligation on the part of the Company to adopt any such amendments or to take any other actions or to indemnify Participant for any failure to do so. 
7.    Tax Withholding.  Participant shall make appropriate arrangements with the Company to provide for payment of all federal, state, local or foreign taxes of any kind required by law to be withheld upon the payment of any amounts pursuant to Participant’s Restricted Stock Units.  Such arrangements may include, but are not limited to, the payment of cash directly to the Company, withholding by the Company from other cash payments of any kind otherwise due Participant, or share withholding as described below.  Participant may elect to satisfy the minimum statutory withholding obligations, in whole or in part, (i) by having the Company withhold shares otherwise issuable to Participant or (ii) by delivering to the Company shares of Common Stock already owned by Participant.  The shares delivered or withheld shall have an aggregate Fair Market Value not in excess of the minimum statutory total tax withholding obligations.  The Fair Market Value of the shares used to satisfy the withholding obligation shall be determined by the Company as of the date that the amount of tax to be withheld is to be determined.  Shares used to satisfy any tax withholding obligation must be vested and cannot be subject to any 

6
6

repurchase, forfeiture, or other similar requirements.  Any election to withhold shares shall be irrevocable, made in writing, signed by Participant, and shall be subject to any restrictions or limitations that the Administrator, in its sole discretion, deems appropriate. 

8.    Consent Relating to Personal Data.  Participant, although under no obligation to do so, voluntarily acknowledges and consents to the collection, use, processing and transfer of personal data as described in this Section 8.  The Company and its subsidiaries hold, for the purpose of managing and administering the Plan, certain personal information about Participant, including Participant’s name, home address and telephone number, date of birth, social security number or other employee identification number, salary, nationality, job title, any shares or directorships held in the Company, details of all Restricted Stock Units and other equity awards or any other entitlement to shares awarded, canceled, purchased, vested, unvested or outstanding in Participant’s favor (“Data”). The Company and/or its Subsidiaries will transfer Data among themselves as necessary for the purpose of implementation, administration and management of Participant’s participation in the Plan and the Company and/or any of its Subsidiaries may each further transfer Data to any third parties assisting the Company in the implementation, administration and management of the Plan. These recipients may be located throughout the world, including the United States. Participant authorize them to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing Participant’s participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of shares on Participant’s behalf to a broker or other third party with whom Participant may elect to deposit any shares acquired pursuant to the Plan. Participant may, at any time, review Data, require any necessary amendments to it or withdraw the consents herein in writing by contacting the Company.   

10.    Other Employee Benefits.  Except as specifically provided otherwise in any relevant employee benefit plan, program, or arrangement, the Restricted Stock Units evidenced hereby are not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.

11.    Electronic Delivery.  PARTICIPANT HEREBY CONSENTS TO ELECTRONIC DELIVERY OF THE PLAN, AND ANY DISCLOSURE OR OTHER DOCUMENTS RELATED TO THE PLAN, INCLUDING FUTURE GRANT DOCUMENTS (COLLECTIVELY, THE “PLAN DOCUMENTS”).  THE COMPANY MAY DELIVER THE PLAN DOCUMENTS ELECTRONICALLY TO PARTICIPANT BY E-MAIL, BY POSTING SUCH DOCUMENTS ON ITS INTRANET WEBSITE OR BY ANOTHER MODE OF ELECTRONIC DELIVERY AS DETERMINED BY THE COMPANY IN ITS SOLE DISCRETION.  PARTICIPANT ACKNOWLEDGES THAT HE OR SHE IS ABLE TO ACCESS, VIEW AND RETAIN AN E-MAIL ANNOUNCEMENT INFORMING PARTICIPANT THAT THE PLAN DOCUMENTS ARE AVAILABLE IN HTML, PDF OR SUCH OTHER FORMAT AS THE COMPANY DETERMINES IN ITS SOLE DISCRETION.

12.    Notices.  Any notice required or permitted to be given hereunder shall be in writing and shall be given by hand delivery, by e-mail, by facsimile, or by first class registered or certified mail, postage prepaid, addressed, if to the Company, to its Corporate Secretary, and if to Participant, to Participant’s address now on file with the Company, or to such other address as either may designate in writing.  Any notice shall be deemed to be duly given as of the date delivered in the case of personal 

7
7

delivery, e-mail, or facsimile, or as of the second day after enclosed in a properly sealed envelope and deposited, postage prepaid, in a United States post office, in the case of mailed notice.

13.    Amendment.  The Grant Documents may be amended by the Administrator at any time without Participant’s consent if such amendment does not reduce the benefits to which Participant was entitled.  In all other cases, the Grant Documents may not be amended or otherwise modified unless evidenced in writing and signed by the Company and Participant.

14.    Relationship to Plan.  Nothing in the Grant Documents shall alter the terms of the Plan.  If there is a conflict between the terms of the Plan and the terms of the Grant Documents, the terms of the Plan shall prevail.

15.    Construction; Severability.  The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of these Restricted Stock Unit Terms and Conditions.  The invalidity or unenforceability of any provision of the Grant Documents shall not affect the validity or enforceability of any other provision thereof, and each other provision thereof shall be severable and enforceable to the extent permitted by law.

16.    Waiver.  Any provision contained in the Grant Documents may be waived, either generally or in any particular instance, by the Administrator appointed under the Plan, but only to the extent permitted under the Plan.

17.    Binding Effect.  The Grant Documents shall be binding upon and inure to the benefit of the Company and to Participant and their respective heirs, executors, administrators, legal representatives, successors and assigns.

18.    Rights to Employment.  Nothing contained in the Grant Documents shall be construed as giving Participant any right to be retained in the employ of the Company and the Grant Documents are limited solely to governing the parties’ rights and obligations with respect to the Restricted Stock Units. 

19.    Governing Law.  The Grant Documents shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to the choice of law principles thereof.

20.    Company Policies to Apply.  The sale of any shares of Common Stock received as payment under the Restricted Stock Units is subject to the Company’s policies regulating securities trading by employees, all relevant federal and state securities laws and the listing requirements of any stock exchange on which the shares of the Company’s Common Stock are then traded.  In addition, participation in the Plan and receipt of remuneration as a result of the Restricted Stock Units is subject in all respects to any Company compensation clawback policies that may be in effect from time to time.

21.    Section 409A Compliance.  The intent of the parties is that payments and benefits under these Grant Documents be exempt from Section 409A of the Code as “short-term deferrals,” and the Grant Documents shall be interpreted and administered accordingly.

8
8

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