Document:

ARC Group Worldwide 10-K

 

Exhibit 10.22

 

 

PROMISSORY NOTE

 

 

 

	$302,770.00	    Deland, Florida
	 	July 1, 2011

 

 

FOR VALUE RECEIVED,
Robert L. Marten, (hereinafter referred to as “Maker” and “Employee”), jointly and severally
promises to pay to FLOMET LLC, a Delaware limited liability company (hereinafter referred to as “Holder”), or
order, in the manner hereinafter specified, the principal sum of Three Hundred Two Thousand Seven Hundred Seventy and no/100
Dollars ($302,770.00), with interest from the date hereof at the rate of five percent (5.0%) per annum on the balance from
time to time remaining unpaid. Such principal and interest shall be paid with after-tax proceeds from a portion of incentive compensation
(after withholding for applicable personal taxes) from the Holder and distributions from Quadrant Metals Technologies LLC (QMT
LLC) (net of personal taxes owed on Maker’s share of the income of QMT LLC), and shall otherwise have reasonable and customary
terms; payable at 810 Flightline Boulevard, Deland, Florida 32724, or at such other place as may hereafter be designated by written
notice from Holder to Maker.

 

The note is to be repaid
in ten (10) equal annual installments of $30,277, with the first installment of $30,277 plus accrued interest due on December 15,
2012 and thereafter annually until repaid in whole, provided such after-tax proceeds from incentive compensation and distributions
in the prior twelve (12) months are sufficient. If such proceeds are insufficient the note will automatically be extended by one
year. Maker may prepay this Note in whole or in part at any time without any prepayment premium, penalty or fee whatsoever.

 

If default be made
in the payment of any of the sums or interest mentioned herein, and such default shall continue for thirty (30) days or more after
Holder provides Maker with written notice thereof, or if default be made in the performance of or compliance with any of the covenants
and conditions contained herein, and such default shall continue for thirty (30) days or more after Holder provides Maker with
written notice thereof, then in any or all of such events, at the option of Holder, and without notice, the entire principal amount
of this Note, together with all interest then accrued thereon, shall become and be immediately due and payable. Failure on the
part of Holder to exercise any right granted herein shall not constitute a waiver of such right or preclude the subsequent exercise
thereof.

 

It is agreed that any
sums which shall not be paid when due (excepting a situation described in Paragraph 2 above where after-tax proceeds are insufficient
in any year resulting in an automatic extension of the note) whether maturing by lapse of time or by reason of acceleration, whether
principal or interest, shall bear interest until paid at the rate of eighteen percent (18%) per annum or the highest rate then
allowed by law, whichever is less.

 

If this Note is placed
in the hands of any attorney for collection, or if Holder shall become a party either as plaintiff or as defendant in any suit
or legal proceeding in relation to the recovery or protection of the indebtedness represented by this Note, then Maker will pay
to Holder, on demand, all costs and expenses incurred by Holder arising therefrom, including, without limitation, attorney fees
and costs, together with interest on such costs and expenses until paid at the rate of eighteen percent (18%)
per annum or the highest rate allowed by law, whichever is less.

 

 

    	1

    	 

    

 

Except as otherwise
provided in this Note, the maker, endorsers and guarantors hereof, if any, and all others who may be or become liable for all or
any part of the obligation represented by this Note, severally waive presentment for payment, protest, and notice of protest and
non-payment, and consent to any number of renewals or extensions of time of payment hereof. Any such renewals or extensions of
time may be made without notice to any of such parties and without affecting their liability. In addition, each maker, endorser,
or guarantor and all others who may be or become liable for all or any part of the obligation represented by this Note agree that
Holder may without notice, and without regard to the consideration, if any, paid therefor, release or substitute any part of the
property given as security for the repayment of the indebtedness represented hereby without releasing any other property given
as security for such indebtedness or may release any person liable for the repayment of the indebtedness represented hereby without
releasing any other person obligated on or for the repayment of the indebtedness represented by this Note.

 

If and whenever this
Note shall be assigned and transferred, or negotiated, the holder hereof shall be deemed the “Holder” for all purposes
under this Note.

 

It is the intention
of the parties hereto that the terms and provisions of this Note are to be construed in accordance with and governed by the laws
of the State of Florida.

 

	Maker’s Address:	Maker’s Signature:
	 	 	 	 
	 	/s/
    Robert L. Marten                                  
	 	 	 	 
	Deland, Florida	Printed Name:	Robert L. MartenARC Group Worldwide 10-K

Exhibit
10.23

 

LOAN
TERMINATION AGREEMENT 

 

THIS LOAN TERMINATION
AGREEMENT (this “Agreement”) is made as of the date set forth on the signature page below by and between
ARC Group Worldwide, Inc., a Utah corporation (referred to herein as “ARC” and the “Company”), FloMet
LLC, a Delaware limited liability company and subsidiary of ARC (“FloMet”) and Robert L. Marten, the President
and Chief Executive Officer of FloMet (the “Executive” and together with the Company and FloMet, the “Parties”).

 

WHEREAS, the Executive
entered into a Promissory Note with FloMet, dated as of July 1, 2011 (the “Promissory Note”);

 

WHEREAS, the principal
stated upon the Promissory Note represented the balance of the purchase price remaining due and payable as of as of July 1, 2011
with respect to certain membership interests which the Executive had acquired from FloMet through transactions which had originated
in 2006 (the “FloMet Membership Interests”);

 

WHEREAS, the Executive,
upon the acquisition of FloMet by Quadrant Metals Technologies LLC (“QMT”) received membership interests in
QMT (the “QMT Membership Interests”) as consideration for the FloMet Membership Interests;

 

WHEREAS, effective
August 8, 2012, ARC acquired all of the membership interests of QMT pursuant to a Membership Interest Purchase Agreement (the “QMT
Acquisition Agreement”);

 

WHEREAS, the QMT
Acquisition Agreement included the acquisition of QMT’s subsidiary FloMet;

 

WHEREAS, as a result
of the acquisition of QMT by ARC, the Executive was issued 83,941
shares of ARC common stock (the “Exchange Consideration Shares”) in exchange for the QMT Membership Interests
which had been subject to the continuing terms of the Promissory Note; and

 

WHEREAS, The Executive
has since the date of inception of the transactions giving rise to the Promissory Note paid an aggregate of $258,327 in respect
of the Promissory Note and its predecessor arrangements, including interest thereon at the rate of 5% per annum; and as of the
date hereof $272,463 remains as outstanding principal upon the Promissory Note, reflecting remaining payments due in respect of
44,159 shares of the Exchange Consideration Shares (the “Lien Shares”), as calculated by reference to the publicly
quoted closing price per share of the Company’s Common Stock on the Nasdaq Stock Market on September 24, 2013.

 

WHEREAS, the Parties
have determined to terminate the Promissory Note.

 

    	 

    	 

    

ARC Group
Worldwide, Inc. – Loan Termination Agreement

 

NOW, THEREFORE,
the Parties agree as follows:

 

1.                 
Promissory Note Termination. The Promissory Note is hereby terminated and is deemed null and void in all respects
as of the date hereof. Any and all remaining and unpaid amounts due, payable or otherwise owed to the Company by the Executive
pursuant to the terms of the Promissory Note as of the date hereof, including all outstanding principal and interest thereof, are
hereby cancelled.

 

2.                 
Stock Forfeiture. The Parties hereto agree that the Executive shall retain any and all of the Exchange Consideration
Shares for purposes of incentive for retention of employment of the Executive by FloMet, provided, however, that the Executive’s
ownership of such portion of the Exchange Consideration Shares constituting the Lien Shares shall be subject to forfeiture if Executive
does not remain an employee at the end of each Company fiscal year at June 30, 2014, June 30, 2015 and June 30, 2016 (respectively,
the “Vesting Dates”). The Parties hereby agree that the Lien Shares shall vest and become free of risk of forfeiture
in an amount equal to one-third (1/3) of the total amount of Lien Shares on each of the respective Vesting Dates, so long as the
Executive remains employed on such date by ARC, FloMet or any direct or indirect subsidiary or affiliated company thereof (an “ARC
Employee”). The value of any and all Lien Shares released from risk of forfeiture shall be construed as additional compensation
paid to the Executive and netted against the gross cash bonus the Executive would have otherwise been entitled to receive with
respect to each such fiscal year. Should the Executive cease to be an ARC Employee (other than for reasons of death, disability
or “good reason”) any and all unvested Lien Shares shall be forfeited and promptly tendered by the Executive to the
Company for cancellation. The Executive hereby agrees to promptly tender to the Company for cancellation any and all certificates
representing unvested Lien Shares, together with a stock power duly executed, if Executive is not an ARC Employee on any such Vesting
Date. Upon forfeiture, no payment or other consideration of any nature or kind shall be due or payable to the Executive with respect
to the tender and cancellation thereof.

 

3.                 
Definitions.

 

“Good Reason”
shall exist, other than pursuant to termination for “Cause” as defined below, if (i)
the Company imposes a material reduction in salary, benefits or role of the Executive without his prior written consent; or (ii)
the Company relocates Executive’s principle reporting location more than 75 miles away from the Executive’s current
reporting location in Deland, Florida. 

 

“Cause”
shall mean (i) the conviction of Executive of a felony, (ii) the commission by Executive of an act of fraud or embezzlement
involving assets of the Company or its shareholders, customers, suppliers or affiliates, (iii) a willful breach or habitual neglect
of Executive’s duties which he is required to perform under lawful and reasonable direction of the Company’s Chief
Executive Officer and which causes material harm to the Company’s business, (iv) refusal to timely produce any and all documentation
related to the Company’s business to the Chief Executive Officer upon request therefore, which refusal causes material harm
to the Company’s business; or (v) gross misconduct or gross negligence in connection with the business of the
Company or an affiliate which has a material adverse effect on the Company and any of its subsidiaries. 

    	-2-

    	 

    

ARC Group
Worldwide, Inc. –  Loan Termination Agreement

 

 

4.                 
Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the domestic Laws
of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State
of Delaware or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of
State of Delaware.

 

5.                 
Entire Agreement. This Agreement constitutes the complete agreement of the Parties with respect to the subject matters
referred to herein and supersedes all prior or contemporaneous negotiations, promises, covenants, agreements or representations
of every nature whatsoever with respect thereto, all of which have become merged and finally integrated into this Agreement. This
Agreement cannot be amended, modified or supplemented except by an instrument in writing executed by both Parties.

 

6.                 
Notices, Payments and Deliveries. Notices shall be given by certified or registered mail or personally or by courier
at the respective addresses on record with the Company.

 

7.                 
Miscellaneous. The terms of this Agreement shall be binding upon and shall inure to the benefit of the Parties and
their respective successors and assigns. This Agreement may be executed in counterparts, each of which when so executed and delivered
by fax, scan or any other means of electronic reproduction shall be an original for all purposes, and all such counterparts shall
together constitute one and the same instrument. Each Party has participated in the negotiation of this Agreement and nothing herein
shall be construed against either Party as the draftsperson. There are no third party beneficiaries.

 

[Signature Page Follows]

 

    	-3-

    	 

    

ARC Group
Worldwide, Inc. –  Loan Termination Agreement

 

 

IN WITNESS WHEREOF, the Parties have
duly executed and delivered this Agreement as of the 25th day of September 2013.

 

 

	EXECUTIVE	 
	 	 	 
	By:	/s/
Robert
    Marten
	 
	Name:	Robert
    Marten	 
			 

 

 

	ARC GROUP WORLDWIDE, INC.	 
	 	 	 	 
	 	By:	/s/
Jason Young
	 
	 	Name:	Jason Young	 
	 	Title:	Chief
Executive Officer	 

 

	FLOMET LLC	 
	 	 	 	 
	 	By:	/s/
        Norma Caceres
	 
	 	Name:	Norma Caceres	 
	 	Title:	 Chief
    Financial Officer	 

 

 

 

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