Document:

unico_ex10118.htm

 

Integrity Metals and Mining, LLC

2360 Corporate Circle, Suite 400 

Henderson, NV 89074

 

HIGHLY CONFIDENTIAL

 

August 26, 2011

Deer Trail Mining Company, LLC

14260 Garden Road, Suite A604, Poway, CA 92064

 

Mail: P.O. Box 503228, San Diego, CA 92150

 

For the attention of: Mark Lopez, CEO

Ed Winders, Chairman of the Board Deer Trail Mining company LLC (858) 837-0428 mlopez.unico@gmail.com

 

Re:     Letter of Intent Regarding Sale of Assets or Stock Purchase of Deer Trail Mining Company. LLC

Dear Sirs:

 

WHEREAS Deer Trail Mining Company, LLC, a Nevada limited liability company ("DTM"), is engaged in the business of the exploration, development and production of gold, silver, lead, zinc, copper and other metals,

 

WHEREAS DTM owns the patented and unpatented mining claims as well as certain real property, equipment and other assets,

 

WHEREAS DTM is seeking to sell all of its assets, including its mineral rights, equipment, real property and all other assets, tangible and intangible, to Integrity Metals & Mining LLC ("IMM") as set forth below and subject to the conditions described herein,

 

WHEREAS the Board of Directors of Unico, Inc., the parent company and sole equity holder in DTM, has approved this Agreement and is hereby committed and obligated to closing the transactions described below, subject only to the satisfaction of the closing conditions set forth below, and

 

WHEREAS, the Board of Directors of IMM has approved this Agreement and is hereby committed and obligated to closing the transactions described below, subject only to the satisfaction of the closing conditions set forth below

 

This binding Agreement confirms the understanding, subject only to the conditions set forth below, between DTM and IMM (collectively referred to herein as the "Parties") with respect to (i) the sale of the DTM assets to IMM for $10 million as set forth below

 

  

 

  

	
1. 

	
Representations of Integrity Metals & Mining LLC

 

Integrity Metals & Mining ("IMM") represents to Unico and DTM as follows:

 

	
(a)

	
IMM is a Nevada corporation and is qualified and authorized to enter into this Agreement,

	

(b) 

	

IMM is a sophisticated investor, is able to evaluate the merits and risks associated with entering into this Agreement and the transactions described herein, and has had access to all of the information necessary or desirable to complete its due diligence, and

	
(c)

	
IMM has all requisite power and authority to execute, deliver and perform this Agreement.

	

(d) 

	

IMM will show Proof of Funds, upon execution of this agreement exhibiting the ability to close this transaction in the time set forth by the Purchase Agreement

 

	
2. 

	
Representations of Unico and DTM

 

Unico and DTM represent to IMM as follows:

 

	

(a) 

	

Unico is an Arizona corporation and Unico and/or its subsidiaries, including DTM, are qualified to do business in all of the states in which they operate and conduct business and are in good standing in each of these jurisdictions; the common stock of Unico is registered under Section 12 of the Securities Exchange Act of 1934, as amended and has filed all past quarterly reports and annual reports with the U.S. Securities and Exchange Commission (other than the quarterly reports for the period ended August 31, 2010, November 30, 2010 and May 31, 2011 on Form 10-Q, and the annual report for the period ended February 28, 2011 on Form 10-K); the common stock of Unico is listed on the "Pink Sheets" under the
symbol "UNCO.PK",

	
(b)

	
DTM's assets are located at 1000 Deer Trail Mine, Marysvale, Utah,

	

(c) 

	

DTM is the legal and beneficial owner of the real property, patented claims and unpatented mineral claims (the "Mineral Property") located near Marysvale, Utah and as described in Exhibit "A";

	

(d) 

	

DTM holds all subsurface mineral rights to the Mineral Property and surface rights to the patented claims free of any liens, royalties, charges or encumbrances except as described in Exhibit "B"; there is no known impediment or restriction that would prevent conducting exploration or that would prevent ongoing mining operations or permitting of mine and milling operations on the Mineral Property,

	
(e)  

	
No creditor or other third party holds any interest, royalty obligation, lien or other encumbrance on any of the Company's assets except for the existing royalty claim by Crown Mining

	
(f)  

	
Both Unico and DTM have all requisite power and authority to execute, deliver and perform this Agreement.

	
3. 

	
DTM Asset/Stock Purchase Acquisition of Deer Trail Mining Company , LLC

 

Subject to the Asset Closing Conditions set forth below, IMM shall either purchase 100% of DTM's assets, including all patented and unpatented mining claims, real property, equipment and other assets, tangible and intangible (including but not limited to various water rights), for an amount equal to $10 million (ten million U.S. dollars) In addition, at the Asset Closing OR acquisition of the Deer Trail Mining Company LLC with the full understanding that all liabilities will be deducted at time of closing, monies escrowed in case of any outstanding judgments and or any other outstanding liabilities and that Unico will indemnify IMM in the result of any
pre-existing liabilities. Purchase price amount equal to $10 million (ten million U.S. Dollars)

 

IMM will decide within 10 days of execution of this agreement if it will be an asset purchase or acquisition of Deer Trail Mining Company, LLC. Unico shall pay in full the brokerage fees due Real Service Realty LLC as set forth in Exhibit F attached hereto.

	
4. 

	
DTM Outstanding payables

 

(a)    IMM will assist DTM in the negotiation of the immediate outstanding payables with the vendors.

 

  

 

  

 

	
5. 

	
IMM Exclusivity Period

The Parties agree to use their best efforts to negotiate and consummate an Investment Transaction as soon as practical, which Investment Transaction shall be subject to approval by the respective boards of directors of the Parties. Unico and DTM shall be prohibited from entering into a competing transaction with any party other than IMM for a period of 30 days after the execution of this agreement.

	
6. 

	
Asset/Stock Closing and Asset/Stock Closing Conditions

 

The Parties agree to use their best efforts to cause the sale of DTM's assets to IMM to close as soon as practical and in no case later than 30 days from the date of execution of the Sales and Purchase agreement. At the Asset/Stock Closing, the following conditions shall be satisfied:

 

	
(a)

	
IMM shall have completed its due diligence of DTM and its assets to its complete satisfaction,

	

(b) 

	

DTM and IMM shall have entered into a definitive asset purchase agreement setting forth the terms and conditions of the transaction ,

	

(c) 

	

The Boards of Directors of each of Unico and IMM shall each have approved the Purchase Agreement.

 

	
7.

	

Purchase to include

 

All assets of Deer Trail Mining or all the stock of Deer Trail Mining LLC Indemnification

 

Unico and IMM each agree, to the extent allowed under governing law, to indemnify and hold the other party harmless from any losses, claims, damages, suit, or liability (including attorney's fees and reasonable expenses incurred in connection with such claims and damages) which the indemnified party may sustain as a result of the indemnifying party breaching its representations, warranties or covenants described herein, provided however that such indemnification shall not be available to the extent that such losses, claims, damages, suit, liabilities or expenses are judicially determined to have resulted primarily from the bad faith, willful misconduct or negligence of the party seeking indemnification. As a
condition precedent to asserting a right of indemnity, the party seeking indemnification shall have given the indemnifying party timely written notice of the assertion of the claim to which the right of indemnification is claimed to exist.

 

	
9. 

	
Governing Law

 

This Agreement will be governed by and construed in accordance with the applicable governing law of the State of Utah. If a court or other tribunal of competent jurisdiction holds any of the provisions of this Agreement to be illegal, invalid or unenforceable in whole or in part, such provisions will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect.

 

	
10. 

	
Complete Agreement

 

Except as otherwise provided herein, this Agreement supersedes any and all prior negotiations, agreements and discussions between the parties, whether oral or written, covering the subject matter contained herein. This Agreement may not be amended or modified except as agreed to in writing by the Parties hereto.

	
11. 

	
Miscellaneous

 

This Agreement will inure to the benefit of and be binding on the respective successors and assigns of the parties to this Agreement. Neither party may assign the Agreement without the prior written consent of the other party. This Agreement may be executed in one or more counterparts, each of which so executed shall constitute an original and all of which together shall constitute one and the same Agreement.

 

  

 

  

If the foregoing is in accordance with your understanding of our agreements, please sign where indicated below.

 

	 	Yours truly,	 
	 	 	 
	 	
UNICO, INCORPORATED

	 
	 	 	 	 
	 	
By: 

		 
	 	 	Name:  Edward E. Winders 	 
	 	 	Title: Chairman of the Board	 
	 	 	 	 

 

	 	
DEER TRAIL MINING COMPANY, LLC

	 
	 	 	 	 
	 	
By: 

		 
	 	 	Name: 	 
	 	 	Title:    Manager	 
	 	 	 	 
	 	AGREED AND CONFIRMED	 
	 	INTEGRITY METALS & MINING LLC	 
	 	 	 	 
	 	By: 		 
	 	 	Name: Donna Blonien 	 
	 	 	Title:    Managing Member	 

 

  

 

  

 

Integrity Metals and Mining, LLC

2360 Corporate Circle, Suite 400 

Henderson, NV 89074

 

 

REAL ESTATE PURCHASE CONTRACT FOR DEER TRAIL MINE

 

 

This is a legally binding Real Estate Purchase Contract ("REPC").

OFFER TO PURCHASE

 

On this 15th day of September, 2011, Integrity Metals and Mining, LLC ("IMM" or "Buyer") offers to purchase, , 100% of the assets of Deer Trail Mining Company, LLC ("DTM" or "Seller"), a wholly-owned subsidiary of Unico, Inc. ("Unico").

"Reference Date" shall be September 15, 2011.

OTHER PROVISIONS

 

	
1. 

	
PROPERTY:

Deer Trail Mine to include patented and unpatented mining claims as well as certain real property, equipment and other assets.

Subject to the Closing Conditions and other terms and conditions set forth below, IMM shall purchase from DTM 100% of DTM's assets (the "DTM Asset Purchase"), including all patented and unpatented mining claims, real property, equipment and other assets, tangible and intangible (including but not limited to various water rights), for an amount of cash paid at Closing equal to $10,050,000 (ten million fifty thousand U.S. dollars), free and clear of all liens and encumbrances other than the royalty agreement in favor of Crown Mines, L.L.C. ("Crown Mines") as may be amended as to be mutually agreed to by Buyer and Seller..

Seller shall at the Closing pay in full the brokerage fees due Real Service Realty LLC pursuant to the terms of the real estate commission agreement between DTM and Real Service Realty LLC dated August 18, 2011.

	
2. 

	
PURCHASE PRICE:

The Purchase Price for the Property, including amounts for the payment of certain claims fees, is: Ten Million Fifty Thousand Dollars, US ($10,050,000) cash at closing.

Buyer has provided and Seller has received the proof of funds sent to "DTM" for the purchase of Deer Trail Mine.

	
3. 

	
SETTLEMENT AND CLOSING:

3.1 Settlement. Settlement shall take place no later than the Settlement Deadline referenced in Section 24(d), or as otherwise mutually agreed by Buyer and Seller in writing. This REPC and the obligations of Buyer and Seller described herein shall be null and void if the Settlement shall not have taken place by the close of business on the Settlement Deadline as referenced in Section 24(d) below. "Settlement" shall occur only when all of the following conditions (the "Closing Conditions") have been satisfied: (a) Buyer and Seller have signed and delivered to each other all documents required by the REPC, by the title insurance and escrow/closing offices, by written escrow
instructions (including any split closing instructions, if applicable), or by applicable law; (b) any monies required to be paid by Buyer or Seller under these documents have been delivered by Buyer or Seller to the other party, or to the escrow/closing office, in the form of cash, wire transfer, cashier's check, or other form acceptable to the escrow/closing office, (c) DTM shall have compiled fully with its obligations to Crown Mines pursuant to the Right of First Refusal ("ROFR") held by Crown Mines, and Crown Mines shall not have given Notice during the Offer Period of its acceptance of the Offer (the preceding words in italics
refer to the defined terms as set forth in the ROFR between Crown Mines and DTM, a copy of which has been provided to Buyer) and (d) Unico's Board of Directors shall have received a satisfactory fairness opinion from Moody Capital LLC.

 

  

 

  

 

3.2  Proration's. All proration's, including, but not limited to, property taxes for the current year, and interest on assumed obligations, if any, shall be made as of the Settlement Deadline referenced in Section 24(d), unless otherwise agreed to in writing by the parties. Such writing could include the settlement statement. The provisions of this Section 3.2 shall survive Closing.

 

3.3  Greenbelt. If any portion of the Property is presently assessed as "Greenbelt" the payment of any roll-back taxes assessed against the Property shall be paid for by Seller.

 

3.4  Fees/Costs/Payment Obligations. Unless otherwise agreed to in writing, Seller shall pay the fee charged by the escrow/closing office for its services in the settlement/closing process. Buyer agrees to be responsible for private and public utility service transfer fees, if any, and all utilities and other services provided to the Property after the Settlement Deadline. The escrow/closing office is authorized and directed to withhold from Seller's proceeds at Closing, sufficient funds to pay off on Seller's behalf all mortgages, trust deeds, judgments, mechanic's liens, tax liens and warrants. The provisions of this Section 3.4 shall
survive Closing.

 

3.5 Closing. For purposes of the REPC, "Closing" means that: (a) Settlement has been completed; (b) the applicable Closing documents have been recorded in the office of the county recorder. The actions described in 

 

3.5 (b) and (c) shall be completed within four calendar days after Settlement.

	
4.

	
POSSESSION:

Upon the execution of this REPC and prior to Closing, Buyer shall be entitled to physically store, at its own cost ore, similar material, equipment or other physical assets (the "Buyer's Materials") on Seller's property in a quantity, location and manner as shall be determined by Seller in its sole discretion. Buyer shall be solely responsible for determining that the storage of the Buyer's Materials does not violate any local, State of Utah or Federal laws, rules or regulations and shall be responsible for any loss or damages suffered by or caused by the Buyer's Materials while on Seller's property. If the Closing does not occur within the time periods set forth in Section 24 below, Seller is entitled to require
Buyer to remove the Buyer's Materials from Seller's property and to restore the property on which such material was stored at Buyer's cost. If the Buyer does not remove the Buyer's Materials within 60 days then such Buyer's Materials shall become the property of the Seller and Buyer shall have no rights to such Buyer's Materials. Upon execution of this agreement Seller shall also allow Buyer access to the Seller property for due diligence or for other purposes as Seller shall agree to in its sole discretion, provided (i) Buyer shall notify Seller in advance of when it seeks access to the property, (ii) Seller shall have the right to limit access to the property to periods when Seller's representatives can accompany Buyer on the property, (iii) prior to the Closing, Buyer shall have no right to operate any Seller equipment without approval of Seller and must be accompanied in doing so by
Seller's representatives, and (iv) Buyer shall be responsible for any damages to or losses suffered by Seller or any of Seller's property as a result of Buyer's conduct on or access to Seller's property.

Seller agrees to deliver the Property to Buyer in the same general condition it was in when Buyer inspected the property on September 6, 2011. The provisions of this Section 4 shall survive Closing.

 

  

 

  

 

	
5. 

	
CONFIRMATION OF AGENCY DISCLOSURE:

Buyer and Seller acknowledge prior written receipt of agency disclosure provided by their respective agent that has disclosed the agency relationships confirmed below. At the signing of the REPC:

Seller's and Buyer's Agent: Dan Kennedy, Real Service Realty LLC

	
6. 

	
TITLE & TITLE INSURANCE:

 

6.1 Title to Property. Seller represents that Seller has fee title to the Property and will convey marketable title to the Property to Buyer at Closing by general warranty deed. Title for all non-real estate assets shall be conveyed from Seller to Buyer at Closing by assignment. Buyer does agree to accept title to the Property subject to the contents of the Commitment for Title Insurance (the "Commitment") provided by Seller under Section 7, and as reviewed and approved by Buyer under Section 8. The provisions of this Section 6.1 shall survive Closing.

 

6.2 Title Insurance. At Settlement, Seller agrees to pay for and cause to be issued in favor of Buyer, through the Title insurance agency that issued the Commitment, the most current version of an ALTA standard coverage owner's policy of title insurance. Any additional title insurance coverage desired by Buyer shall be at Buyer's expense.

 

6.3 It is understood and agreed to by the parties: "IMM" will be having a survey done on the property and due to time constraints for closing, the survey may or may not be completed before closing. "DTM" understands and that any encroachments or discrepancies will be covered by the title insurance to be provided by seller.

	
7. 

	
SELLER DISCLOSURES:

To be provided by the Seller to the Buyer within five (5) calendar days after the Buyer and the Seller fully sign this REPC. Sellers Disclosures, shall include: (a) a written Seller Property Condition Disclosure (Land) for the property, completed, signed and dated by the Sellers as provided in Section 10.2; (b) Commitment for Title Insurance as referenced in Section 6.1; (c) a copy of any restrictive covenants, rules and/or regulations affecting the Property; (d) a copy of any lease, rental, and property management agreements affecting the Property not expiring prior to Closing. (e) evidence of any water rights and/or water shares in any way related to the property (f) written notice of any claims and/or
conditions known to Seller relating to environmental problems; and violation of any federal, state or local laws, and building or zoning code violations.

Seller has disclosed to and provided Buyer with a copy of the binding agreement between DTM and Crown Mines, L.L.C., a Texas limited liability company ("Crown Mines"), dated May 31, 2007, pursuant to which DTM purchased certain mineral claims from Crown Mines and Crown Mines retained a perpetual royalty interest on the DTM mineral claims and right of access to and across the surface of DTM's mineral claims (the "Crown Mines Obligations"). Buyer will handle negotiations with Crown Mines

Seller shall use its best efforts to allow Buyer to inspect its property, assets, financial books and records related to DTM, geological maps and reports, and other any other reports which Buyer may reasonably request upon execution of this REPC. Buyer shall pay in advance any direct or indirect costs which Seller may incur in allowing Buyer to inspect such material. Upon Closing, all of these materials shall become the property of the Buyer.

 

  

 

  

 

	
8. 

	
BUYER'S CONDITIONS OF PURCHASE:

 

8.1 DUE DILIGENCE CONDITION. Buyer's obligation to purchase the Property is conditioned upon Buyer's Due Diligence as defined in this Section 8.1(a) below. This condition is referred to as the "Due Diligence Condition." 

 

(a) Due Diligence Items. Buyer's Due Diligence shall consist of Buyer's review and approval of the contents of the Seller Disclosures referenced in Section 7, and any other tests, evaluations and verifications of the Property deemed necessary or appropriate by Buyer, such as: the physical condition of the Property; the existence of any hazardous substances, environmental issues or geologic conditions; the square footage or acreage of the Property; the costs and availability of flood insurance, if applicable; water source, availability and quality; the
location of property lines; regulatory use restrictions or violations; fees for services such as municipal services, and utility costs; and any other matters deemed material to Buyer in making a decision to purchase the Property. Unless otherwise provided in the REPC, all of Buyer's Due Diligence shall be paid for by Buyer and shall be conducted by individuals or entities of Buyer's choice. Seller agrees to cooperate with Buyer's Due Diligence. Buyer agrees to pay for any damage to the Property resulting from any such inspections or tests during the Due Diligence. In addition, the Buyer agrees to indemnify and hold Seller harmless from any injuries which might occur during Due Diligence or other inspections by Buyer or Buyer's agents.

 

(b) Buyer's Right to Cancel or Resolve Objections. If Buyer determines, in Buyer's sole discretion, that the results of the Due Diligence are unacceptable, Buyer may either: (i) no later than the Due Diligence Deadline referenced in Section 24(b), cancel the REPC by providing written notice to Seller or (ii) no later than the Due Diligence Deadline referenced in Section 24(b), resolve in writing with Seller any objections Buyer has arising from Buyer's Due Diligence.

 

(c) Failure to Cancel or Resolve Objections. If Buyer fails to cancel the REPC or fails to resolve in writing any objections Buyer has arising from Buyer's Due Diligence, as provided in Section 8.1(b), Buyer shall be deemed to have waived the Due Diligence Condition.

8.2 APPRAISAL CONDITION. Buyer's obligation to purchase the Property is not conditioned upon the Property appraising for not less than the Purchase Price.

 

8.3 FINANCING CONDITION. Buyer's obligation to purchase the property is not conditioned upon Buyer obtaining a loan for the purchase.

 

	
9. 

	
ADDENDA:

 

The terms of any addenda are incorporated into the REPC only upon the full endorsement of Buyer and Sellers.

 

	
10. 

	
"AS-IS" CONDITION OF PROPERTY:

 

10.1 Condition of Property/Buyer Acknowledgements. Buyer acknowledges and agrees that in reference to the physical condition of the Property: (a) Buyer is purchasing the Property in its "As-Is" condition without expressed or implied warranties of any kind; (b) Buyer shall have, during Buyer's Due Diligence as referenced in Section 8.1, an opportunity to completely inspect and evaluate the condition of the Property; and (c) if based on the Buyer's Due Diligence, Buyer elects to proceed with the purchase of the Property, Buyer is relying wholly on Buyer's own judgment and that of any
contractors or inspectors engaged by Buyer to review, evaluate and inspect the Property.

 

10.2 Condition of Property/Seller Acknowledgements. Seller acknowledges and agrees that in reference to the physical condition of the Property, Seller agrees to: (a) disclose in writing to Buyer defects in the Property known to Seller that materially affect the value of the Property that cannot be discovered by a reasonable inspection by an ordinary prudent Buyer; (b) carefully review, complete, and provide to Buyer a written Seller Property Condition Disclosure (Land) as stated in Section 7(a); and (c)
deliver the Property to Buyer in substantially the same general condition as it when Buyer inspected the property on September 6, 2011. The provisions of Sections 10.1 and 10.2 shall survive Closing.

 

  

 

  

	
11. 

	
NON-COMPETE:

 

For a period of ten years after the Closing, Unico (i) shall not acquire or seek to acquire any mineral claims, mining property or other real property located within a 20 mile radius of DTM, including but not limited to any properties owned by Crown Mines within such designated area, and (ii) shall not enter into any mining operations in any capacity within the 20 mile radius of DTM.

	
12. 

	
CHANGES DURING TRANSACTION:

 

Seller agrees that from the date of Acceptance until the date of Closing, none of the following shall occur without the prior written consent of Buyer: (a) no changes in any leases, rental or property management agreements shall be made; (b) no new lease, rental or property management agreements shall be entered into; (c) no substantial alterations or improvements to the Property shall be made or undertaken; (d) no further financial encumbrances to the Property shall be made, and (e) no changes in the legal title to the Property shall be made.

	
13. 

	
AUTHORITY OF SIGNERS:

 

If Buyer or Seller is a corporation, partnership, trust, estate, Limited Liability Company or other entity, the person signing the REPC on its behalf warrants his or her authority to do so and to bind Buyer and Seller.

 

	
14. 

	
COMPLETE CONTRACT:

The REPC together with its addenda, any attached exhibits, and Seller Disclosures (collectively referred to as the "REPC"), constitutes the entire contract between the parties and supersedes and replaces any and all prior negotiations, representations, warranties, understandings or contracts between the parties whether verbal or otherwise. The REPC cannot be changed except by written agreement of the parties.

	
15. 

	
MEDIATION:

Any dispute relating to the REPC arising prior to or after Closing shall first be submitted to mediation, however in no event shall any mediation be cause or postpone the Closing date. Mediation is a process in which the parties meet with an impartial person who helps to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. The parties to the dispute must agree before any settlement is binding. The parties will jointly appoint an acceptable mediator and share equally in the cost of such mediation. If mediation fails, the other procedures and remedies available under the REPC shall apply. Nothing in this Section 15 prohibits any party from seeking emergency legal or equitable
relief, pending mediation. The provisions of this Section 15 shall survive Closing.

	
16. 

	
DEFAULT:

 

16.1 Buyer Default. If Buyer defaults, Seller may elect one of the following remedies: (a) cancel the REPC and pursue any other remedies available at law.

 

16.2 Seller Default. If Seller defaults, Buyer may elect one of the following remedies: (a) cancel the REPC and pursue any other remedies available at law

 

  

 

  

 

	
17. 

	
ATTORNEY FEES AND COSTS/GOVERNING LAW:

In the event of litigation or binding arbitration to enforce the REPC, the prevailing party shall be entitled to costs and reasonable attorney fees. However, attorney fees shall not be awarded for participation in mediation under Section 15. This contract shall be governed by and construed in accordance with the laws of the State of Utah. The provisions of this Section 17 shall survive Closing.

	
18. 

	
NOTICES:

Except as provided in Section 23, all notices required under the REPC must be: (a) in writing; (b) signed by the Buyer or Seller giving notice; and (c) received by the Buyer or the Seller, or their respective agent, or by the brokerage firm representing the Buyer or Seller, no later than the applicable date referenced in the REPC.

 

	
19. 

	
NO ASSIGNMENT:

The REPC and the rights and obligations of Buyer hereunder, are personal to Buyer. The REPC may not be assigned by Buyer without the prior written consent of Seller. Provided, however, the transfer of Buyer's interest in the REPC to any business entity in which Buyer holds a legal interest, including, but not limited to, a family partnership, family trust, limited liability company, partnership, or corporation (collectively referred to as a "Permissible Transfer"), shall not be treated as an assignment by Buyer that requires Seller's prior written consent. Furthermore, the inclusion of "and/or assigns" or similar language on the line identifying Buyer on the first page of the REPC shall constitute Seller's written
consent only to a Permissible Transfer.

 

	
20. 

	
RISK OF LOSS:

If prior to Closing, any part of the Property is damaged or destroyed by fire, vandalism, flood, earthquake, or act of God, the risk of such loss or damage shall be borne by Seller except as set forth below; provided however, that if the cost of repairing such loss or damage would exceed ten percent (10%) of the Purchase Price referenced in Section 2, Buyer may elect to either: (i) cancel the REPC by providing written notice to the other party, in which instance the Earnest Money, or Deposits, if applicable, shall be returned to Buyer; or (ii) proceed to Closing, and accept the Property in its "As-Is" condition. Buyer shall bear the risk of any loss or damage to the ore or other material or equipment that it
stores on the Property prior to Closing pursuant to Section 4 above.

	
21. 

	
TIME IS OF THE ESSENCE:

Time is of the essence regarding the dates set forth in the REPC. Extensions must be agreed to in writing by all parties. Unless otherwise explicitly stated in the REPC: (a) performance under each Section of the REPC which references a date shall absolutely be required by 5:00 PM Mountain Time on the stated date; and (b) the term "days" and "calendar days" shall mean calendar days and shall be counted beginning on the day following the event which triggers the timing requirement (e.g. Acceptance). Performance dates and times referenced herein shall not be binding upon title companies, lenders, appraisers and others not parties to the REPC, except as otherwise agreed to in writing by such non-party.

 

	
22. 

	
ELECTRONIC TRANSMISSION AND COUNTERPARTS:

Electronic transmission (including email and fax) of a signed copy of the REPC, any addenda and counteroffers, and the retransmission of any signed electronic transmission shall be the same as delivery of an original. The REPC and any addenda and counteroffers may be executed in counterparts.

 

  

 

  

	
23.

	
ACCEPTANCE:

"Acceptance" occurs only when all of the following have occurred:

(a) Seller or Buyer has signed the offer or counteroffer where noted to indicate acceptance; and (b) Seller or Buyer or their agent has communicated to the other party or to the other party's agent that the offer or counteroffer has been signed as required.

	
24.

	
CONTRACT DEADLINES:

 

Buyer and Seller agree that the following deadlines shall apply to the REPC: If the closing of the transactions contemplated by this agreement do not occur by the Settlement Deadline (as may be extended by mutual written consent of the parties), then this agreement and the obligations of Buyer and Seller set forth herein shall be null and void.

 

(a) Seller Disclosure Deadline:                                           Five (5) calendar days after Acceptance

(b) Proof of Funds:                                                              (has been provided to seller)

(c) Due Diligence Deadline:                                               Twenty five (25) calendar days after Acceptance

(d) Settlement Deadline:                                                     Thirty (30) calendar days after Acceptance of this Purchase Agreement

 

	
25.

	
OFFER AND TIME FOR ACCEPTANCE:

It is agreed and understood by the parties: the prior signed and attached LOI shall become a legal and binding part of this purchase agreement. Should there be any discrepancies: this purchase agreement will prevail as the binding agreement. It is also understood and agreed by the parties: this agreement is to be held private between Buyer and Seller and will not be disclosed without the prior written consent of Buyer to any third party other than Crown Mines (in accordance with the terms of the ROFR between Crown Mines and Seller) or as Unico may be required to disclose, upon the advice of legal counsel, in its filings with the U.S. Securities and Exchange Commission.

 

  

 

  

 

Buyer offers to purchase the Property on the above terms and conditions.

 

		 	09/15/2011	 
	(Buyer's Signature) 	 	Date	 

 

   

IF YOU DESIRE SPECIFIC LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL.ex10-1.htm

 

Exhibit 10.1

 

DYNAMICS RESEARCH CORPORATION

 

2011 EMPLOYEE STOCK PURCHASE PLAN

 

1.           Purpose.  The purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company through accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1986, as amended. The provisions of the Plan, accordingly, shall be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code.

 

2.           Definitions.

 

(a)           “Board” shall mean the Board of Directors of Dynamics Research Corporation.

 

(b)           “Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(c)           “Common Stock” shall mean the Common Stock of Dynamics Research Corporation.

 

(d)           “Company” shall mean Dynamics Research Corporation, a Massachusetts corporation, and any Designated Subsidiary of the Company.

 

(e)           “Compensation” shall mean all base straight time gross earnings, commissions, overtime, and shift premium exclusive of payments for incentive compensation, incentive payments, bonuses and other compensation.

 

(f)           “Designated Subsidiary” shall mean any Subsidiary which has been designated by the Board or its committee appointed pursuant to Section 14 from time to time in its sole discretion as eligible to participate in the Plan.

 

(g)           “Employee” shall mean any individual who is an Employee of the Company for tax purposes whose customary employment with the Company is at least twenty (20) hours per week. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other leave of absence approved by the Company.  Where the period of leave exceeds 90 days and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment
relationship shall be deemed to have terminated on the 91st day of such leave.

 

(h)           “Enrollment Date” shall mean the first day of each Offering Period.

 

(i)           “Exercise Date” shall mean the last day of each Offering Period.

 

(j)           “Fair Market Value” shall mean, as of any date, the value of Common Stock determined as follows:

 

  

1

  

(1)           If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq Global Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the date of such determination (or, if such day was not a Trading Day, for the next preceding date that was a Trading Day) as reported in The Wall Street Journal or such other source as the Board or its committee appointed pursuant to
Section 14 deems reliable, or;

 

(2)           If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean of the closing bid and asked prices for the Common Stock on the date of such determination (or, if such day was not a Trading Day, for the next preceding date that was a Trading Day) as reported in The Wall Street Journal or such other source as the Board or its committee appointed pursuant to Section 14 deems reliable, or;

 

(3)           In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Board or its committee appointed pursuant to Section 14.

 

(k)           “Offering Period” shall mean, except as otherwise provided pursuant to

 

Section 4, four (4) periods of approximately three (3) months each, during which an option granted pursuant to the Plan may be exercised, commencing on the first Trading Day and terminating on the last Trading Day in the period, as follows: the period beginning May 1 and ending July 31 of the same year, the period beginning August 1 and ending October 31 of the same year, the period beginning November 1 and ending January 31 of the following year, or the period beginning
February 1 and ending April 30 of the following year; provided, however, that the first Offering Period shall begin on the first Trading Day after the effectiveness of a registration statement covering the offer and sale of Common Stock under the Plan.  The duration of Offering Periods may be changed pursuant to Section 4 of this Plan.

 

(l)           “Plan” shall mean this Employee Stock Purchase Plan.

 

(m)           “Purchase Price” shall mean an amount equal to ninety-five percent (95%), or such other percentage (but not less than eighty-five percent (85%)) of the Fair Market Value of a share of Common Stock on the Exercise Date as the Board or its committee appointed pursuant to Section 14 shall determine; provided however, that the Purchase Price (including the date for determination thereof) may be determined for subsequent Offering Periods by the Board or its committee appointed pursuant to Section 14 subject to compliance with
Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule) or pursuant to Section 20.

 

(n)           “Reserves” shall mean the number of shares of Common Stock covered by each option under the Plan which have not yet been exercised and the number of shares of Common Stock which have been authorized for issuance under the Plan but not yet placed under option.

 

(o)           “Subsidiary” shall mean a corporation, domestic or foreign, of which not less than 50% of the voting shares are held by the Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary.

 

(p)           “Trading Day” shall mean a day on which national stock exchanges and the Nasdaq System are open for trading.

 

  

2

  

3.           Eligibility.

 

(a)           An Employee is eligible to participate for any Offering Period from the first day of employment.

 

(b)           Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) to the extent that, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee would own (or pursuant to Section 424(d) of the Code would be deemed to own) capital stock of the Company and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or of any Subsidiary, or (ii) to the extent that his or her
rights to purchase stock under all employee stock purchase plans of the Company and its subsidiaries accrues at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of stock (determined at the fair market value of the shares at the time such option is granted) for each calendar year in which such option is outstanding at any time.

 

(c)           Non-U.S. Employees.  Employees who are citizens or residents of a non-U.S. jurisdiction (without regard to whether they also are citizens or residents of the United States or resident aliens (within the meaning of Section 7701(b)(1)(A) of the Code)) may be excluded from participation in the Plan or an Offering if the participation of such Employees is prohibited under the laws of the applicable jurisdiction or if complying with the laws of the applicable jurisdiction would cause the Plan or an Offering to violate
Section 423 of the Code.

 

4.           Offering Periods.   The Plan shall be implemented by consecutive Offering Periods with a new Offering Period commencing on the first Trading Day on or after May 1, August 1, November 1 and February 1 each year and ending on the last Trading Day on or before July 31, October 31, January 31 and April 30.  The Board or its committee appointed pursuant to Section 14 shall have the power to change the duration of Offering Periods (including the commencement dates thereof) with respect to future offerings without stockholder approval if such change is announced prior
to the scheduled beginning of the first Offering Period to be affected thereafter.

 

5.           Participation.

 

(a)           An eligible Employee may become a participant in the Plan at any time, by completing a required enrollment process . All Employees participating in the Plan for an Offering Period shall have the same rights and privileges except as otherwise permitted under Section 423(b)(5) of the Code.

 

(b)           Payroll deductions for a participant shall commence on the first payroll period following the Enrollment Date and shall end on the last payroll in the Offering Period to which such authorization is applicable, unless sooner terminated by the participant as provided in Section 10 hereof.

 

6.           Payroll Deductions and Contributions.

 

(a)           At the time a participant files his or her subscription agreement in such paper or electronic form as may be provided, he or she shall elect to have payroll deductions made on each pay day during the Offering Period in an amount not exceeding ten percent (10%) of the Compensation which he or she receives on each pay day during the Offering Period.

 

  

3

  

(b)           All payroll deductions made for a participant shall be credited to his or her account under the Plan and shall be withheld in whole percentages.  The Board or its committee appointed pursuant to Section 14, in its sole discretion, may permit Participants in a specified Offering to contribute amounts to the Plan through payment by cash, check or other means set forth in the subscription agreement prior to each Exercise Date of each Offering Period.

 

(c)           A participant may discontinue his or her participation in the Plan as provided in Section 10 hereof.  Also, a participant may at any time during an Offering Period (but only once during any Offering Period) reduce by one or more whole percentage points his or her specified payroll deduction percentage as to future withholdings during the period.  A participant who reduces his or her specified payroll deduction percentage in an Offering Period pursuant to the immediately preceding sentence but who does not withdraw from the Plan shall continue to be a participant for the
Offering Period.  The subscription agreement of a participant described in this subsection shall remain in effect for successive Offering Periods unless terminated as provided in Section 10 hereof.

 

(d)           Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b) hereof, a participant’s payroll deductions may be decreased to zero percent (0%) at any time during an Offering Period.  Payroll deductions shall recommence at the rate provided in such participants subscription agreement at the beginning of the next Offering Period, unless participation is terminated as provided in Section 10 hereof.

 

(e)           At the time the option is exercised, in whole or in part, or at the time some or all of the Company’s Common Stock issued under the Plan is disposed of or there is otherwise a taxable event with respect to the option or stock, the participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of the Common Stock. At any time, the Company may, but shall not be obligated to, withhold from the participants compensation the amount necessary for the Company to meet
applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by the Employee.

 

7.           Grant of Option.  On the Enrollment Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option to purchase on the Exercise Date of such Offering Period (at the applicable Purchase Price) up to a number of shares of the Company’s Common Stock determined by dividing such Employee’s payroll deductions accumulated prior to such Exercise Date and retained in the Participants account as of the Exercise Date by the applicable Purchase Price; provided that in no event shall an Employee be permitted to purchase
during each Offering Period more than 250shares (subject to any adjustment pursuant to Section 18), and provided further that such purchase shall be subject to the limitations set forth in Sections 3(b) and 13 hereof. Exercise of the option shall occur as provided in Section 8 hereof, unless the participant has withdrawn pursuant to Section 10 hereof. The Option, except to the extent exercised, shall expire on the last day of the Offering Period.

 

  

4

  

8.           Exercise of Option.  Unless a participant withdraws from the Plan as provided in Section 10 hereof, his or her option for the purchase of shares shall be exercised automatically on the Exercise Date, and the maximum number of full and fractional shares subject to option shall be purchased for such participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account. Any other monies left over in a participant’s account after the Exercise Date shall be returned to the participant.  During a participant’s
lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her.

 

9.           Delivery.  As promptly as practicable after each Exercise Date on which a purchase of shares occurs, the Company shall arrange the delivery to each participant, as appropriate, of the shares purchased upon exercise of his or her option.

 

10.           Withdrawal.

 

(a)           A participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to exercise his or her option under the Plan prior to exercise by giving written notice to the Company. All of the participant’s payroll deductions credited to his or her account shall be paid to such participant promptly after receipt of notice of withdrawal and such participants option for the Offering Period shall be automatically terminated, and no further payroll deductions for the purchase of shares shall be made for such Offering Period. If a participant
withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the participant delivers to the Company a new subscription agreement

 

(b)           A participant’s withdrawal from an Offering Period shall not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the termination of the Offering Period from which the participant withdraws.

 

11.           Termination of Employment.  Upon a participant’s ceasing to be an Employee for any reason, he or she shall be deemed to have elected to withdraw from the Plan and the payroll deductions credited to such participant’s account during the Offering Period but not yet used to exercise the option shall be returned to such participant or, in the case of his or her death, to the person or persons entitled thereto under Section 15 hereof, and such participant’s option shall be automatically terminated.

 

12.           Interest.  No interest shall accrue on the payroll deductions of a participant in the Plan.

 

  

5

  

13.           Stock.

 

(a)           Subject to adjustment upon changes in capitalization of the Company as provided in Section 18 hereof the maximum number of shares of the Company’s Common Stock which shall be made available for sale under the Plan shall be two hundred and fifty thousand (250,000) shares. If, on a given Exercise Date, the number of shares with respect to which options are to be exercised exceeds the number of shares then available under the Plan, the Company shall make a pro rata allocation of the shares remaining available for purchase in as uniform a
manner as shall be practicable and as it shall determine to be equitable.

 

(b)           The participant shall have no interest or voting right in shares covered by his option until such option has been exercised and the shares are issued.  Prior to such issuance a participant shall only have the rights of an unsecured creditor of the Company.

 

(c)           Shares purchased by a participant under the Plan shall be registered in the name of the participant or in the name of the participant and his or her spouse as determined by the participant.

 

14.           Administration.  The Plan shall be administered by the Board or a committee of members of the Board appointed by the Board. The Board or its committee shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan. Every finding, decision and determination made by the Board or its committee shall, to the full extent permitted by law, be final and binding upon all parties.

 

15.           Designation of Beneficiary.

 

(a)           A participant may file a written designation, in such form and manner as the Company may determine, of a beneficiary who is to receive any shares and cash, if any, from the participant’s account under the Plan in the event of such participant’s death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such participant of such shares and cash. In addition, a participant may file a written designation of a beneficiary who is to receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to
exercise of the option. If a participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective.

 

(b)           Such designation of beneficiary may be changed by the participant at any time by written notice in such form and manner as the Company may determine. In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participants death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the
spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.

 

16.           Transferability.  Neither payroll deductions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 15 hereof) by the participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance
with Section 10 hereof.

 

 

  

6

  

 

17.           Use of Funds.  All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose until they are invested as provided herein, and the Company shall not be obligated to segregate such payroll deductions.

 

18.           Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Sale.

 

(a)           Changes in Capitalization.  The Reserves, the maximum number of shares each participant may purchase per Offering Period (pursuant to Section 7), as well as the price per share and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised shall be appropriately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration”. Such adjustment shall be made by the Board or its committee appointed pursuant to Section 14, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an option.

 

(b)           Dissolution or Liquidation.  In the event of the proposed dissolution or liquidation of the Company, the Offering Period then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the consummation of such proposed dissolution or liquidation, unless provided otherwise by the Board or its committee appointed pursuant to Section 14. The New Exercise Date shall be before the date of the Company’s proposed dissolution or liquidation.
The Board or its committee appointed pursuant to Section 14 shall notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10 hereof.

 

(c)           Merger or Asset Sale.  In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, each outstanding option shall be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor-corporation refuses to assume or substitute for the option, the Offering Period then in progress shall be shortened by setting a new Exercise Date (the
“New Exercise Date”). The New Exercise Date shall be before the date of the Company’s proposed sale or merger. The Board or its committee appointed pursuant to Section 14 shall notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participants option has been changed to the New Exercise Date and that the participants option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10 hereof.

 

19.           Amendment or Termination.

 

(a)           The Board or its committee appointed pursuant to Section 14 may at any time and for any reason terminate, suspend or amend the Plan. Except as provided in Section 18 hereof, no such termination can affect options previously granted, provided that an Offering Period may be terminated by the Board or its committee appointed pursuant to Section 14 on any Exercise Date if the Board or its committee appointed pursuant to Section 14 determines that the termination of the Offering Period or the Plan is in the best interests of the Company and its stockholders. Except as provided in Section 18 and Section
19 hereof, no amendment may make any change in any option theretofore granted which adversely affects the rights of any participant. If an Offering Period is terminated prior to expiration, all amounts then credited on participants’ accounts that have not been used to purchase shares of Common Stock will be returned to the participants (without interest thereon).  To the extent necessary to comply with Section 423 of the Code (or any other applicable law, regulation or stock exchange rule), the Company shall obtain shareholder approval in such a manner and to such a degree as required.

 

(b)           Without limiting the generality of subsection (a) above, the Board or its committee shall be entitled, without stockholder consent and without regard to whether any participant rights may be considered to have been “adversely affected”, to: change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the
Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Board (or its committee) determines in its sole discretion advisable which are consistent with the Plan.  Notwithstanding the foregoing, no Offering Period shall be longer than twenty-seven (27) months.

 

20.           Notices.  All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

 

21.           Conditions Upon Issuance of Shares.  Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

 

As a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law.

 

22.           Term of Plan.  The Plan shall become effective upon the earlier to occur of its adoption by the Board of Directors or its approval by the stockholders of the Company. It shall continue in effect for a term of ten (10) years from the date of such adoption or approval unless sooner terminated under Section 19 hereof.

 

23.           Stockholder Approval.  The Plan will be submitted for approval by the stockholders of the Company.  If the stockholders of the Company do not approve the Plan within 12 months of its adoption by the Board of Directors, the Plan shall be deemed terminated upon such 12 month anniversary but the options granted under the Plan that were previously exercised shall not be deemed invalid, regardless of any change in the tax treatment thereof.

 

24.           Governing Law. The Plan shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without regard to its conflict of laws provisions.

 

 

  

7

  

 

25.        Severability. If any provision of the Plan is or becomes or is deemed to be invalid, illegal, or unenforceable for any reason in any jurisdiction or as to any Participant, such invalidity, illegality or unenforceability shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as to such jurisdiction or Participant as if the invalid, illegal or unenforceable provision had not been included.

26.        Section 409A.  The provisions of this Plan are intended and shall be interpreted and administered so as to be exempt from Section 409A of the Code, but the Company makes no representation or warranty to that effect.

 

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]