Document:

bioc-ex104_436.htm

 

Exhibit 10.4

 

EMPLOYMENT AGREEMENT AMENDMENT

This Employment Agreement Amendment is entered into by and between Biocept, Inc., a Delaware corporation (the “Company”), and Michael W. Nall (“Executive”), and shall be effective as of November 6, 2015 (the “Amendment Effective Date”).

Whereas, the Company and Executive are parties to an Employment Agreement, effective as of August 26, 2013 (the “Employment Agreement”); and

Whereas, the Company and the Executive now desire to amend the Employment Agreement as set forth herein.

Now, Therefore, in consideration of the foregoing and the mutual promises herein contained, the parties agree as follows (capitalized terms used but not defined herein shall have the meaning set forth in the Employment Agreement):

1.Amendment of Section 4(g) "Stock Award Acceleration".  Section 4(g) of the Employment Agreement is hereby amended and restated to read in its entirety as follows:

"(g) Stock Award Acceleration

(i)  In the event of a Change of Control, if the surviving corporation or acquiring corporation (or its parent company) in such Change of Control does not assume or continue Executive's then-outstanding Stock Awards or substitute similar stock awards for such Stock Awards, then all previously unvested Stock Awards shall vest and become exercisable (as applicable) immediately prior to such Change of Control, provided that Executive is providing continued service to the Company as of  immediately prior to such Change of Control.

In addition, solely with respect to Executive's Stock Awards granted prior to pre-Amendment Effective Date (the "Pre-Amendment Stock Awards"), in the event of a Change of Control where such Pre-Amendment Stock Awards are not fully accelerated pursuant to the first sentence of this Section 4(g)(i), (A) the vesting and/or exercisability of fifty percent (50%) of the Executive’s outstanding unvested Pre-Amendment Stock Awards shall be automatically accelerated on the date of a Change of Control, and (B) the remaining unvested Pre-Amendment Stock Awards shall vest and/or become exercisable on the first to occur of (1) the first anniversary of such Change of Control, or (2) the date of Executive’s termination of employment as a result of Executive’s discharge by the Company without Cause or by reason of Executive’s resignation for Good Reason.  

(ii)  In the event of Executive’s termination of employment as a result of Executive’s discharge by the Company without Cause or by reason of Executive’s resignation for Good Reason, the vesting and/or exercisability of each of Executive’s outstanding Stock Awards shall be automatically accelerated on the date of Executive’s termination of employment as to the number of Stock Awards that would vest over the twelve (12) month period following the date of Executive’s termination of employment had Executive remained continuously employed by the Company during such period.

(iii)  In the event that during the 10-day period before a Change of Control or during the 12-month period following a Change of Control, Executive's employment is terminated either as a result of Executive's discharge by the Company (or successor(s) thereto) without Cause or by reason of Executive's resignation for Good Reason, then the vesting and/or exercisability of each of Executive’s outstanding Stock Awards shall be automatically accelerated on the date of Executive’s termination or resignation of employment, as applicable.

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(iv)  The foregoing provisions of this Section 4(g) are hereby deemed to be a part of each Stock Award and to supersede any less favorable provision in any agreement or plan regarding such Stock Award."

2.Amendment of Section 10 "Miscellaneous".   A new Section 10(o) shall be added to Section 10 of the Employment Agreement as follows:

"(o) Code Section 280G.  

(i)  If any payment or benefit Executive will or may receive from the Company or otherwise (a “280G Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then any such 280G Payment (a “Payment”) shall be equal to the Reduced Amount.  The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive’s receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax.  If a reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that results in the greatest economic benefit for Executive.  If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata. 

(ii)  Unless Executive and the Company agree on an alternative accounting firm or law firm, the accounting firm engaged by the Company for general tax compliance purposes as of the day prior to the effective date of the Change of Control shall perform the foregoing calculations.  If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, the Company shall appoint a nationally recognized accounting or law firm to make the determinations required hereunder.  The Company shall bear all expenses with respect to the determinations by such accounting or law firm required to be made hereunder.  The Company shall use commercially reasonable efforts to cause the accounting or law firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to Executive and the Company within 15 calendar days after the date on which Executive's right to a 280G Payment becomes reasonably likely to occur (if requested at that time by Executive or the Company) or such other time as requested by Executive or the Company.  

 If Executive receives a Payment for which the Reduced Amount was determined pursuant to clause (x) of Section 10(o) and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive agrees to promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of Section 10(o) so that no portion of the remaining Payment is subject to the Excise Tax.  For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) of clause (x) of Section 10(o), Executive shall have no obligation to return any portion of the Payment pursuant to the preceding sentence."

3.Miscellaneous.

(a)Except as specifically provided for in this Employment Agreement Amendment, the terms of the Employment Agreement shall be unmodified and shall remain in full force and effect. In the event that any provision of this Employment Agreement Amendment and the Employment Agreement conflict, the provision of this Employment Agreement Amendment shall govern.  

(b)This Employment Agreement Amendment will be effective upon the Amendment Effective Date. 

(c)This Employment Agreement Amendment may be executed in counterparts, each of which when so executed shall be deemed to be an original, and such counterparts shall together constitute one and 

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the same instrument.  This Employment Agreement Amendment shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and to be performed wholly within such State, and without regard to the conflicts of laws principles thereof. For the avoidance of doubt, the Employment Agreement Amendment shall become part of the Employment Agreement and therefore subject to its terms, including but not limited to Section 8 thereof.  

 (Signature Page Follows)

 

3.

 

 

 

In Witness Whereof, the parties have executed this Employment Agreement Amendment as of the date first set forth above.

 

	
 
	
 
	
BIOCEPT, INC.

	
 
	
 
	
By:
	
/s/ David F. Hale

	
 
	
 
	
Name:
	
David F. Hale

	
 
	
 
	
Title:
	
Chairman of the Board

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
EXECUTIVE

	
 
	
 
	
 
	
/s/ Michael W. Nall

	
 
	
 
	
 
	
Print Name: Michael W. Nall

 

4.AMENDMENT
5 TO SHARE PURCHASE AGREEMENT AND OPTION AGREEMENT

 

THIS
AMENDMENT NO. 5 (“Agreement”) is made and entered into as of the 6th
day of November 2015 to a SHARE PURCHASE AGREEMENT, dated as of January 20, 2015,
as amended as of March 27, 2015 and as further amended on the 1st day of June 2015 and on the 10th day of
July 2015, and on September 30, 2015 (collectively, the “Purchase Agreement”)
by and among: K LASER TECHNOLOGY, INC., a Taiwan corporation, (“K
Laser”), the other Persons who are listed as Majority Shareholders on Exhibit
A-1 to the Purchase Agreement; 寶萊特科技股份有限公司(BOXLIGHT
DISPLAY, INC.), a corporation organized under the laws of Taiwan (the “Purchaser”);
BOXLIGHT CORPORATION (formerly, LOGICAL CHOICE CORPORATION),
a corporation organized under the laws of the State of Nevada, United States (the “Parent”);
and VERT CAPITAL CORP., a corporation organized under the laws of the State of
Delaware, United States (“Vert”). 

 

Reference
is also made to an OPTION AGREEMENT,
dated as of January 20, 2015, as amended as of March 27, 2015 and as further amended as of June 1, 2015 and on the 10th
day of July 2015 and on September 30, 2015 (collectively, the “Option Agreement”)
by and among: K Laser; the other Persons who are listed as the shareholders of EVEREST DISPLAY, INC.,
a corporation organized under the laws of Taiwan (“EDI”) on Exhibit
A (“Majority Shareholders”); the Participating Minority Shareholders
(as defined in the Purchase Agreement); Parent and Vert. K Laser, the other Persons who are listed as Majority Shareholders and
the Participating Minority Shareholders (as defined in the Purchase Agreement) are hereinafter collectively referred to as the
“Option Holders.”

 

1. Pursuant
to ARTICLE III of the Purchase Agreement and for the purposes of ARTICLES I, II, V, VI, VIII and X of the Purchase Agreement,
K Laser has been appointed as the Shareholders’ Representative (the “Shareholders’ Representative”)
by the Selling Parties (as defined in the Purchase Agreement)). In addition, the Option Agreement acknowledges that K Laser had
been appointed as Shareholders Representative.

 

2. This
Agreement will acknowledge that all references in the Purchase Agreement and Option Agreement to “Boxlight Display, Inc.,
a Taiwan corporation” or the “Purchaser” be, and the same is hereby amended to replace Boxlight Display,
Inc. with the term “Boxlight Holdings, Ltd., a Taiwan corporation” and all references in the Purchase Agreement
and the Option Agreement to the “Purchaser” shall mean and include only Boxlight Holdings, Ltd.

 

3. This
Agreement will further acknowledge that as at the date of execution of the original Purchase Agreement in January 2015, Logical
Choice Corporation (now Boxlight Corporation), a Nevada corporation did not own any of the share capital of Boxlight Holdings,
Ltd.

 

4.
 Section 1.5 of the Purchase Agreement is deleted in its entirety and is replaced by the following Section 1.5:

 

1.5
Closing. Upon the terms and subject to the conditions set forth
herein, the closing of the sale and purchase of the Subject Shares and related transactions under the Option Agreement referred
to herein (the “Closing”) will take place at 10:00 a.m., Taiwan time, immediately
after the consummation of a “Liquidity Event” defined herein and after satisfaction or, to the extent permitted
hereunder, waiver of all conditions to the Closing set forth herein (other than those conditions that by their nature are to be
satisfied at the Closing, but subject to the satisfaction or, to the extent permitted hereunder, waiver of all such conditions),
unless this Agreement has been terminated pursuant to its terms or unless another time or date is agreed to in writing by the
parties hereto. The Closing shall be held at the offices of Pamir Law, attorneys at law, and Taiwan counsel to the Purchaser in
Taipei, Taiwan, unless another place is agreed to in writing by the parties hereto, and the actual date of the Closing is hereinafter
referred to as the “Closing Date.” Notwithstanding the foregoing, if the
Liquidity Event and the Closing do not occur prior to December 15, 2015, the Shareholders’ Representative shall have the
option to terminate this Agreement unless otherwise agreed to between the Shareholders’ Representative, the Purchaser and
the Parent.

 

    	 

    	 

    

 

5. Section
1.4 of the Option agreement is deleted in its entirety and is replaced by the following Section 1.4:

 

1.4 Closings.
Upon the terms and subject to the conditions set forth herein, exercise of the Option and the closing of the issuance and sale
and the purchase of the Option Shares and related transactions under this Option Agreement (the “Closing”)
will take place at 10:00 a.m., Taiwan time, on a date which shall be simultaneous with the Closing Date of the transactions contemplated
by the Share Purchase Agreement. The Closing shall be held at the offices of Pamir Law, attorneys at law, and Taiwan counsel to
the Company, in Taipei, Taiwan, unless another place is agreed to in writing by the parties hereto, and the actual date of the
Closing is hereinafter referred to as the “Closing Date.” Notwithstanding
the foregoing, in no event shall the Closing of the exercise of the Option be earlier than or later than the Closing Date under
the Share Purchase Agreement, and, unless otherwise agreed to by the Company and the “Shareholders Representative”
(as defined in the Share Purchase Agreement), in no event shall such Closing of the exercise of the Option be later than December
15, 2015 “Outside Closing Date” under the Share Purchase Agreement.

 

6. All
references to the Liquidity Event and the Closing and the Outside Closing Date in both the Purchase Agreement
and the Option Agreement shall mean December 15, 2015.

 

7 In
the event of any inconsistency between the terms of the Purchase Agreement and/or the Option Agreement with terms and conditions
set forth in this Amendment No. 5, the provisions of this Amendment No. 5 shall govern.

 

8. Except
as amended by this Agreement all of the terms and conditions of the Purchase Agreement and the Option Agreement shall remain in
full force and effect and are incorporated herein by this reference as though more fully set forth herein at length.

 

**********************

 

Signature
page follow

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the Parties have caused their duly authorized representatives to execute this Agreement on the date first above
written.

  

	Parent:	BOXLIGHT
        CORPORATION

        (formerly,
        Logical Choice Corporation)

 

	 	By:	/s/
Mark Elliott  

	 	Name:	Mark
Elliott 

	 	Title:	CEO

 

	Purchaser:	寶萊特科技股份有限公司

        (BOXLIGHT
        HOLDINGS, LTD.)

 

	 	By:	/s/
Mark Elliott 

	 	Name:	Mark
Elliott 

	 	Title:	Chairman

 

	Vert:	VERT
    CAPITAL CORP.

 

	 	By:	/s/
    Michael Pope
	 	Name:	Michael
    Pope
	 	Title:	Managing
    Director

 

	Majority
    Shareholders:	K
        LASER TECHNOLOGY INC.

        in
        its capacity as Majority Shareholder and for the purpose of ARTICLES I, II, V, X, VI, VIII and X, as Shareholders’
        Representative

 

	 	By:	/s/
    Alex Kuo
	 	Name:	Alex
    Kuo
	 	Title:	Chairman

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