Document:

Exhibit 10.1

 

PERCEPTRON,
INC.

SEVERANCE AGREEMENT

 

THIS SEVERANCE AGREEMENT,
dated as of October 19, 2015, (the “Agreement”) is between Perceptron, Inc. (the “Company”) and
David Watza, who began employment by the Company in the position of Senior Vice President and Chief Financial Officer (the
“Executive”) effective October 5, 2015.

 

1.Operation
of Agreement. This Agreement sets forth the severance compensation that the Company shall pay the Executive if the Executive’s
employment with the Company terminates under one of the applicable provisions set forth herein. As used in this Agreement, employment
with the Company shall be deemed to include employment with a subsidiary of the Company. The severance provided under this Agreement
is intended either to be exempt from or comply with the provisions of Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”).

 

2.Defined
Terms. For purposes of this Agreement, the following terms shall have the meanings set forth below:

 

(a)“Administrator”
is defined in Section 15(a).

 

(b)“Agreement”
is defined in the preamble.

 

(c)“Benefit
Continuation Period” is defined in Section 3(b)(iii).

 

(d)“Cause”
shall mean the Executive’s

 

(i)personal
dishonesty in connection with the performance of services for the Company,

 

(ii)willful
misconduct in connection with the performance of services for the Company,

 

(iii)conviction
for violation of any law involving (A) imprisonment that interferes with performance of duties or (B) moral turpitude,

 

(iv)repeated
and intentional failure to perform stated duties, after written notice is delivered identifying the failure, and it is not cured
within 10 days following receipt of such notice,

 

(v)breach
of a fiduciary duty to the Company,

 

(vi)breach
of the Proprietary Information and Invention Agreement or the Perceptron Executive Agreement Not to Compete, or

 

(vii)prior
to a Change in Control, engaging in activities detrimental to the interests of the Company that have a demonstrable adverse effect
on the Company.

 

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(e)“Change
in Control” shall be deemed to have occurred upon the occurrence of any of the following events:

 

(i)A merger
involving the Company in which the Company is not the surviving corporation (other than a merger with a wholly-owned subsidiary
of the Company formed for the purpose of changing the Company’s corporate domicile);

 

(ii)A share
exchange in which the shareholders of the Company exchange their stock in the Company for stock of another corporation (other than
a share exchange in which all or substantially all of the holders of the voting stock of the Company, immediately prior to the
transaction, exchange, on a pro rata basis, their voting stock of the Company, for more than 50% of the voting stock of such other
corporation);

 

(iii)A
sale of all or substantially all of the assets of the Company; or

 

(iv)Any
person or group of persons (as defined in Section 13(d) of the Securities Exchange Act of 1934, as amended) (other than any employee
benefit plan or employee benefit trust benefiting the employees of the Company) becoming a beneficial owner, directly or indirectly,
of securities of the Company representing more than 50% of either the then outstanding Common Stock of the Company, or the combined
voting power of the Company’s then outstanding voting securities.

 

(f)“Change
in Control Severance Benefits” is defined in Section 4(c).

 

(g)“Change
in Control Benefit Continuation Period” is defined in Section 4(c)(iii).

 

(h)“Claimant”
is defined in Section 15(b).

 

(i)“Code”
is defined in Section 1.

 

(j)“Company”
is defined in the preamble.

 

(k)“Disability”
shall mean the Executive’s inability to substantially perform the Executive’s duties for such period as would qualify
the Executive for benefits under the long-term disability insurance policy provided by the Company or, if no such policy is provided,
the Executive’s total and permanent disability which prevents the Executive from performing for a continuous period exceeding
six months the duties assigned to the Executive. The determination of Disability shall be made by a medical board-certified physician
mutually acceptable to the Company and the Executive (or the Executive’s legal representative, if one has been appointed),
and if the parties cannot mutually agree to the selection of a physician, then each party shall select such a physician and the
two physicians so selected shall select a third physician who shall make this determination.

 

(l)“Executive”
is defined in the preamble.

 

(m)“Good
Reason” is defined in Section 4(a)(ii).

 

(n)“Non-Competition
Agreement” is defined in Section 9.

 

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(o)“Outside
Date” is defined in Section 16(e).

 

(p)“Prime
Rate” is defined in Section 3(c).

 

(q)“Proprietary
Information and Invention Agreement” shall mean the Proprietary Information and Invention Agreement dated October
5, 2015 between the parties to this Agreement.

 

(r)“Regular
Severance Benefits” is defined in Section 3(b).

 

(s)“Release”
is defined in Sections 3(b) and 4(c).

 

(t)“Termination
of Employment” is defined in Sections 3 and 4.

 

3.Termination
of Employment. The Executive shall be entitled to the Regular Severance Benefits (as defined in Section 3(b) below) set
forth in this Section 3 if the Executive has incurred a Termination of Employment. The Executive is not entitled to receive severance
payments under the Company’s documented severance policy, if any.

 

(a)For purposes of
Section 3 of the Agreement, “Termination of Employment” shall be defined as the Executive’s involuntary termination
by the Company for any reason other than death, Disability or Cause; provided such termination constitutes a “separation
from service” as defined in Code Section 409A.

 

(b)Upon satisfaction
of the requirements set forth in this Section 3 and conditioned upon the Executive’s execution of a release (in the form
attached hereto as Exhibit A) (the “Release”) that becomes irrevocable within 60 days following the Executive’s
Termination of Employment, the Executive shall be entitled to the following severance benefits (the “Regular Severance Benefits”)
to commence when the Release becomes irrevocable within such 60-day period (subject to the Specified Employee restrictions set
forth below) and provided that if the 60-day period spans two calendar years, the benefits shall commence in the second calendar
year:

 

(i)A cash
severance benefit equal to one-half of the Executive’s current annual base salary, as in effect at the time of the Termination
of Employment;

 

(ii)A prorated
portion of any bonus that the Executive would have earned for the year of termination had the Executive been employed by the Company
at the end of the applicable bonus period;

 

(iii)Subject
to Section 6, following the Executive’s election of COBRA and submission of monthly receipts evidencing the Executive’s
payment for monthly COBRA coverage for the Executive, the Executive’s spouse and dependent children under age 26, if health
coverage at the same level was provided by the Company to such family members at Termination of Employment (including vision and
dental, as applicable), the Company shall reimburse the Executive for such COBRA payments for six months of coverage or, if earlier,
for the months of COBRA coverage until the death of the Executive (the “Benefit Continuation Period”). To the extent
permissible under the terms of the Company’s welfare plans, the Company also shall provide the Executive with welfare benefits
(including executive life insurance coverage, if provided by the Company to the Executive at the date of termination) for six months
or, if earlier, until the death of the executive, at the same level and on comparable terms as provided by the Company to its employees
from time to time during the Benefit Continuation Period, with the Company paying (or reimbursing the Executive, as applicable)
for any monthly premiums otherwise required to be paid by the Executive to continue such coverage. Any reimbursement for COBRA
coverage under this paragraph shall run concurrently with the period of required COBRA continuation coverage under the Code; and

 

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(iv)Continuation
of the Executive’s then current car benefit for six months or, if earlier, the death of the Executive, in accordance with
the Company car policy in effect at the time of termination.

 

(c)Subject to payment
timing restrictions under the Release and Specified Employee provisions set forth herein, the Executive’s cash severance
benefit under Section 3(b)(i) shall be payable in the same manner as the Executive’s base salary, and the pro rata share
of any bonus under Section 3(b)(ii) shall be payable at the time set forth in the bonus program. Notwithstanding the foregoing,
if at the time of Termination of Employment the Executive constitutes a “Specified Employee” as defined in Code Section
409A, and the Executive’s aggregate severance benefit is not exempt from Code Section 409A, commencing at Termination of
Employment (subject to Release timings restrictions set forth above), the Executive shall receive the benefits that are exempt
from Code Section 409A and shall receive any payments that are not exempt from Code Section 409A until the attainment of any applicable
Code Section 409A cap, at which time the remaining non-exempt payments shall be suspended. When a period of six months has lapsed
from the Executive’s Termination of Employment or, if earlier, the Executive’s death, any suspended payments shall
be aggregated and paid in a lump sum on the first day of the next month, and the remaining compensation, if any, shall be paid
in accordance with its regular schedule. Any payment, including amounts suspended under Code Section 409A, made later than 10 days
following the Executive’s Termination of Employment (or applicable due date under this Section 3 or Section 11(a) hereof)
for whatever reason, shall include interest at the Prime Rate plus two percent, which shall begin accruing on the 10th
day following the Executive’s Termination of Employment (or applicable due date under this Section 3 or Section 11(a) hereof).
“Prime Rate” shall be determined by reference to the prime rate established by Comerica Bank (or its successor), in
effect from time to time commencing on the 10th day following the Executive’s Termination of Employment (or applicable
due date under Sections 3, 4, 11(a) or 16 hereof).

 

(d)In addition to the amounts specified
above, Executive shall be entitled to reimbursements of any accrued but unpaid expenses incurred in accordance with Code Section
409A and the Company’s reimbursement policy.

 

4.Termination
of Employment Following a Change in Control. Subject to Section 11(a) hereunder, the Executive shall be entitled to the
Change in Control Severance Benefits (as defined in Section 4(c) below) set forth in this Section 4 and not the severance benefits
under Section 3 of this Agreement, if there has been a Change in Control and the Executive has incurred a Termination of Employment.
The Executive is not entitled to receive severance payments under the Company’s documented severance policy, if any.

 

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(a)For purposes of
Section 4 of the Agreement, “Termination of Employment” shall be defined as:

 

(i)The
Executive’s involuntary termination by the Company for any reason other than death, Disability or Cause; provided such termination
constitutes a “separation from service” as defined in Code Section 409A; or

 

(ii)The
Executive’s termination for “Good Reason,” defined as the occurrence of any of the following events without the
Executive’s written consent, if the Executive terminates employment within one (1) year following the occurrence of such
event:

 

(A)Any material
diminution in the Executive’s position, duties, responsibilities or status with the Company from his position, duties, responsibilities
or status with the Company immediately prior to the Change in Control;

 

(B)Any material
diminution in the Executive’s base salary in effect immediately prior to the Change in Control, which shall be a reduction
in such base salary of five (5%) percent or more unless a greater reduction is required by Code Section 409A to constitute an “involuntary
separation from service”;

 

(C)A material
required relocation of the Executive’s principal place of employment which shall be a relocation of more than 50 miles from
the Executive’s place of employment prior to the Change in Control unless a relocation of a greater distance is required
by Code Section 409A to constitute an “involuntary separation from service”; or

 

(D)The Company’s
material breach of any provision in this Agreement.

 

(b)If the Executive
believes that Good Reason, as defined in Section 4 above exists, the Executive shall provide written notice of the existence of
the condition to the Company within 90 days after the initial existence of the condition and shall provide the Company with a period
of at least 30 days in which to cure the condition and not be required to pay the Good Reason severance. The submission of such
a written notification by the Executive shall not constitute “Cause” for the Company to terminate the Executive as
defined under Section 2(a) hereof. If the condition is not cured within the 30-day period, to receive a Good Reason Termination
of Employment, the Executive shall terminate employment within 30 days following the expiration of the cure period.

 

(c)Upon satisfaction
of the requirements set forth in Sections 4 or 11(a) hereof and with respect to any one or more Changes in Control that may occur
during the term of this Agreement, upon the Executive’s execution of a release that becomes irrevocable within 60 days following
the Executive’s Termination of Employment (in the form attached hereto as Exhibit A) (the “Release”),
the Executive shall be entitled to the following severance benefits (the “Change in Control Severance Benefits”) to
commence when the Release becomes irrevocable within such 60-day period (subject to the Specified Employee restrictions set forth
below) and provided that if the 60-day period spans two calendar years, the benefits shall commence in the second calendar year:

 

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(i)A cash
severance benefit equal to one times the Executive’s current annual base salary, as in effect at the time of the Change in
Control;

 

(ii)A prorated
portion of the Executive’s target bonus for the year of termination, based on the number of days worked in the year of termination;

 

(iii)Subject
to Section 6, following the Executive’s election of COBRA and submission of monthly receipts evidencing the Executive’s
payment for monthly COBRA coverage for the Executive, the Executive’s spouse and dependent children under age 26, if health
coverage at the same level was provided by the Company to such family members at Termination of Employment (including vision and
dental, as applicable), the Company shall reimburse the Executive for such COBRA payments for one year of coverage, or if earlier,
for the period until the death of the Executive (the Change in Control Benefit Continuation Period”). To the extent permissible
under the terms of the Company’s welfare plans, the Company also shall provide the Executive with welfare benefits (including
executive life insurance coverage, if provided by the Company to the Executive at Termination of Employment) for one year or, if
earlier, the death of the Executive, in each case, at the same level and on comparable terms as provided by the Company to its
employees from time to time during the Benefit Continuation Period, with the Company paying (or reimbursing the Executive, as applicable)
for any monthly premiums otherwise required to be paid by the Executive to continue such coverage. Any reimbursement for COBRA
coverage under this paragraph shall run concurrently with the period of required COBRA continuation coverage under the Code;

 

(iv)Continuation
of the Executive’s then current car benefit for one year or, if earlier, the death of the Executive, in accordance with the
Company car policy in effect at the time of termination; and

 

(v)Continued
coverage, during the six (6) years following the Executive’s termination for his actions or omissions as an officer and,
if applicable, director of the Company prior to the date of termination of his employment, under any directors and officers liability
insurance policy maintained by the Company (or, if the Company does not maintain such a policy, by its affiliates) for its former
directors and officers or, at the Company’s election, for the current directors and officers. If the Company or its affiliates
does not otherwise maintain such a policy, then the Company shall be required to provide the Executive with such a policy, to the
extent available. The policy dollar coverage limits of any such policy shall be not less than the policy limit under any Company
policy in place within the one (1) year prior to the Executive’s termination of employment (the “Existing Policy”)
or, if less, the policy dollar coverage limit that can be purchased by the Company for all of its current and former directors
and officers at an annual premium equal to two times the Company’s annual premium for the Existing Policy.

 

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(d)Subject to Section
11(a) hereof, the Release timing restrictions set forth above and the Code Section 409A Specified Employee limitations set forth
below, the Executive’s cash severance benefit under Section 4(c)(i) and (ii) shall be paid in a lump sum cash payment within
ten (10) days following the Executive’s Termination of Employment, as defined in Section 4. Any payment, including amounts
suspended under Code Section 409A, made later than 10 days following the Executive’s Termination of Employment (or applicable
due date under this Section 4 or Section 11(a) hereof) for whatever reason, shall include interest at the Prime Rate plus two percent,
which shall begin accruing on the 10th day following the Executive’s Termination of Employment (or applicable due date under
this Section 4 or Section 11(a) hereof). Notwithstanding the foregoing, if at the time of Termination of Employment the Executive
constitutes a “Specified Employee,” as defined in Code Section 409A, commencing at Termination of Employment (subject
to the Release timing requirements set forth above), the Executive shall receive the benefits that are exempt from Code Section
409A and shall receive the non-exempt payments until attainment of any applicable Code Section 409A cap, at which time the remaining
non-exempt payments shall be suspended. When a period of six months has lapsed from the Executive’s Termination of Employment
or, if earlier, the death of the Executive, any suspended payments shall be aggregated and paid in a lump sum on the first day
of the next month, and the remaining compensation, if any, shall be paid in accordance with its regular schedule.

 

(e)Section 4 of this
Agreement shall terminate upon the first of the following events to occur:

 

(i)Three
years from the date hereof if a Change in Control has not occurred within such three-year period;

 

(ii)Termination
of the Executive’s employment with the Company prior to a Change in Control; provided, however, if there is a Change in Control
within six months after the termination of the Executive’s employment with the Company, other than a termination due to the
Executive’s death or Disability, an involuntary termination by the Company for Cause or a termination of employment by the
Executive other than for Good Reason, then the Agreement shall not be deemed to have terminated and the Executive shall be entitled
to receive the Change in Control Severance Benefits provided in Section 4, less any Regular Severance Benefits the Executive has
been paid under Section 3, in lieu of the severance benefits the Executive is entitled to under Section 3;

 

(iii)The
expiration of two years following a Change in Control;

 

(iv)Termination
of the Executive’s employment with the Company following a Change in Control due to the Executive’s death or Disability;

 

(v)Termination
of the Executive’s employment by the Company for Cause following a Change in Control; or

 

(vi)Termination
of employment by the Executive for other than Good Reason following the date of a Change in Control.

 

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Unless Section 4 of this Agreement has first terminated under
clauses (ii) through (vi) hereof, commencing on the third anniversary of the date of this Agreement, and on each one-year anniversary
thereafter, Section 4 of this Agreement shall be extended for one additional year, unless at least 180 days prior to any such anniversary,
the Company notifies the Executive in writing that it shall not extend the term of Section 4 of this Agreement.

 

5.Golden
Parachute Limit. Payments under this Agreement, when aggregated with any other “golden parachute” amounts (defined
under Section 280G of the Code) as compensation that becomes payable or accelerated due to a Change in Control payable under this
Agreement or any other plans, agreements or policies of the Company, shall not exceed to the golden parachute cap under Sections
280G and 4999 of the Code.

 

6.No
Mitigation or Duty to Seek Reemployment. The Executive shall be under no duty or obligation to seek or accept other employment
after Termination of Employment and shall not be required to mitigate the amount of any payments provided for by this Agreement
by seeking employment or otherwise. The Regular Severance Benefit and Change in Control Severance Benefits payments shall not be
reduced or suspended if the Executive accepts other employment, except that Company is not required to continue any health or welfare
benefit payments which duplicate employee benefits and perquisites received in such other employment.

 

7.Pro
Rata Share of Bonus. For purposes of this Agreement, a pro rata share of any bonus or target bonus shall mean the total
bonus or target bonus payable multiplied by a fraction, the numerator of which is the number of days in the applicable bonus period
prior to the date of the Executive’s Termination of Employment, Disability or death and the denominator of which is the number
of days in the bonus period.

 

8.Stock
Options. The Executive’s rights with respect to any options to purchase Company stock shall be governed by the terms
of the agreements pursuant to which such options were issued.

 

9.Non-Competition
and Restrictive Covenant. If, during the term that the Executive is receiving benefits under this Agreement, the Executive
violates the terms of this Agreement, the Release, the Proprietary Information and Invention Agreement, or the Perceptron Executive
Agreement Not to Compete dated September 4, 2015 between the Executive and the Company (the “Non-Competition Agreement”)
or any other non-competition agreement with the Company, the Company’s obligations to the Executive under this Agreement
shall automatically terminate. For purposes of Section 1 of the Non-Competition Agreement, “Payment Completion Period”
shall mean two years from the date of the Executive’s termination of employment if the Executive receives Change in Control
Severance Benefits under Section 4.

 

10.Tax
Withholding. The Company may withhold from any cash amounts payable to the Executive under this Agreement to satisfy all
applicable Federal, State, local or other income (including excise) and employment withholding taxes. In the event the Company
fails to withhold such sums for any reason, or withholding is required for any non-cash payments provided in connection with the
Executive’s Termination of Employment, the Company may require the Executive to promptly remit to the Company sufficient
cash to satisfy all applicable income and employment withholding taxes.

 

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11.Binding
Effect.

 

(a)This Agreement
shall be binding upon the successors and assigns of the Company. The Company shall take whatever actions are necessary to ensure
that any successor to its operations (whether by purchase, merger, consolidation, sale of substantially all assets or otherwise)
assumes the obligations under this Agreement and shall cause such successor to evidence the assumption of such obligations in an
agreement satisfactory to the Executive. Notwithstanding any other provisions in this Agreement, if the Company fails to obtain
an agreement evidencing the assumption of the Company’s obligations by any such successor, the Executive shall be entitled
to immediate payment of the severance compensation provided under Section 4, irrespective of whether the Executive’s employment
has then terminated. For purposes of implementing the foregoing, the date on which any succession becomes effective shall be deemed
to constitute the date of the Executive’s Termination of Employment. Notwithstanding the foregoing, if the succession does
not constitute a “Change of Control” as defined under Code Section 409A, the compensation payments under Section 4
shall be suspended until the earlier of a “Change of Control” as defined under Code Section 409A, or the Executive
incurs an actual separation from service, or, if later, at the end of any additional suspensions as may be required under Section
4 if the Executive is a “Specified Employee” at the time of separation from service, at which time any suspended payments,
with interest at the Prime Rate plus two percent, accruing from 10 days following the succession date, shall be paid in accordance
with the terms of Section 4.

 

(b)This Agreement
shall be binding upon the Executive and shall inure to the benefit of and be enforceable by the Executive’s legal representatives
and heirs. However, the rights of the Executive under this Agreement shall not be assigned, transferred, pledged, hypothecated
or otherwise encumbered, except by operation of law.

 

12.Amendment
of Agreement. This Agreement may not be modified or amended except by instrument in writing signed by the parties hereto.
The parties agree that this Agreement may be amended to comply with applicable law, including, but not limited to, Code Section
409A.

 

13.Validity.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall continue in full force and effect.

 

14.Limitation
on Rights.

 

(a)This Agreement
shall not be deemed to create a contract of employment between the Company and the Executive and shall create no right in the Executive
to continue in the Company’s employment for any specific period of time, or to create any other rights in the Executive or
obligations on the part of the Company, except as set forth herein. This Agreement shall not restrict the right of the Company
to terminate the Executive, or restrict the right of the Executive to terminate employment.

 

(b)Subject to the
exception for cash severance payments under the Company’s documented severance policy referenced in Sections 3 and 4 above,
this Agreement shall not be construed to exclude the Executive from participation in any other compensation or benefit programs
in which the Executive is specifically eligible to participate either prior to or following the execution of this Agreement, or
any such programs that generally are available to other executive personnel of the Company, nor shall it affect the kind and amount
of other compensation to which the Executive is entitled.

 

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(c)The rights of
the Executive under this Agreement shall be solely those of an unsecured general creditor of the Company.

 

15.Claims
Procedure.

 

(a)The administrator
for purposes of this Agreement shall be the Company (“Administrator”), whose address is 47827 Halyard Drive, Plymouth,
Michigan 48170, and whose telephone number is (734) 414-6100. The “Named Fiduciary” as defined in Section 402(a)(2)
of ERISA, also shall be the Company. The Company shall have the right to designate one or more Company employees as the Administrator
and the Named Fiduciary at any time, and to change the address and telephone number of the same. The Company shall give the Executive
written notice of any change in the Administrator and Named Fiduciary, or in the address or telephone number of the same.

 

(b)The Administrator
shall make all determinations as to the right of any person to receive benefits under the Agreement. Any denial by the Administrator
of a claim for benefits by the Executive (“the Claimant”) shall be stated in writing by the Administrator and delivered
or mailed to the Claimant within 10 days after receipt of the claim, unless special circumstances require an extension of time
for processing the claim. If such an extension is required, written notice of the extension shall be furnished to the Claimant
prior to the termination of the initial 10-day period. In no event shall such extension exceed a period of 10 days from the end
of the initial period. Any notice of denial shall set forth the specific reasons for the denial, specific reference to pertinent
provisions of this Agreement upon which the denial is based, a description of any additional material or information necessary
for the Claimant to perfect the claim, with an explanation of why such material or information is necessary, and any explanation
of claim review procedures, written to the best of the Administrator’s ability in a manner that may be understood without
legal or actuarial counsel.

 

(c)A Claimant whose
claim for benefits has been wholly or partially denied by the Administrator may request, within 60 days following the date of such
denial, in a writing addressed to the Administrator, a review of such denial. The Claimant shall be entitled to submit such issues
or comments in writing or otherwise, as the Claimant shall consider relevant to a determination of the claim, and the Claimant
may include a request for a hearing in person before the Administrator. Prior to submitting the request, the Claimant shall be
entitled to review such documents as are pertinent to the claim. The Claimant may, at all stages of review, be represented by counsel,
legal or otherwise, of the Claimant’s choice. All requests for review shall be promptly resolved. The Administrator’s
decision with respect to any such review shall be set forth in writing and shall be mailed to the Claimant not later than 10 days
following receipt by the Administrator of the Claimant’s request unless special circumstances, such as the need to hold a
hearing, require an extension of time for processing, in which case the Administrator’s decision shall be so mailed not later
than 20 days after receipt of such request.

 

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(d)A Claimant who
has followed the procedure in paragraphs (b) and (c) of this Section, but who has not obtained full relief on the claim for benefits,
may, within 60 days following the Claimant’s receipt of the Administrator’s written decision on review, apply in writing
to the Administrator for binding arbitration of the claim before an arbitrator mutually acceptable to both parties, the arbitration
to be held in Plymouth, Michigan, in accordance with the arbitration rules of the American Arbitration Association, Commercial
Disputes Resolution Procedures, as then in effect. If the parties are unable to mutually agree upon an arbitrator, then the arbitration
proceedings shall be held before three arbitrators, one of which shall be designated by the Company, one of which shall be designated
by the Claimant and the third of which shall be designated mutually by the first two arbitrators in accordance with the arbitration
rules referenced above. The arbitrator(s) sole authority shall be to interpret and apply the provisions of this Agreement; the
arbitrator(s) shall not change, add to, or subtract from, any of the Agreement’s provisions. The arbitrator(s) shall have
the power to compel attendance of witnesses at the hearing. Any court having jurisdiction may enter a judgment based upon such
arbitration. All decisions of the arbitrator(s) shall be final and binding on the Claimant and the Company without appeal to any
court. The Executive and the Company hereby acknowledge that as arbitration is the exclusive remedy with respect to any grievance
hereunder, neither party has the right to resort to any federal, state or local court or administrative agency concerning breaches
of this Agreement, and the decision of the arbitrator shall be a complete defense to any suit, action or proceeding instituted
in any federal, state or local court or before any administrative agency with respect to any dispute which is arbitrable as herein
set forth.

 

16.Legal
Fees and Expenses.

 

(a)Except as otherwise
provided in Section 16(b), in the event any arbitration or litigation is brought to enforce any provision of this Agreement and
the Executive prevails, then the Executive shall be entitled to recover from the Company the Executive’s reasonable costs
and reasonable expenses of such arbitration or litigation, including reasonable fees and disbursements of counsel (both at trial
and in appellate proceedings), (“Expenses”). Except as otherwise provided in Section 16(b), if the Company prevails,
then each party shall be responsible for its/his respective costs, expenses and attorneys fees, and the costs of the arbitrator
shall be equally divided.

 

(b)Except to the
extent prohibited by applicable law, in the event any arbitration or litigation is brought to enforce any provision of Section
4 of this Agreement, the Company shall advance to the Executive one half of the amount of the Executive’s Expenses and shall
pay the costs of the arbitrator. The Executive shall be obligated to repay such advances to the Company only if the Company prevails
in the arbitration or litigation.

 

(c)In the event that
it is determined that the Executive is entitled to compensation, legal fees and expenses hereunder, the Executive also shall be
entitled to interest thereon, from the date payment thereof was due, payable to the Executive at the Prime Rate of interest plus
two percent.

 

(d)For purposes of
this Section 16, “prevails” means that the Executive receives an award of severance benefits in such arbitration or
litigation in excess of the amount offered to be paid by the Company to the Executive prior to the initiation of the arbitration
or litigation. For purposes of determining the date when legal fees and expenses are payable, such amounts are not due until 30
days after notification to the Company of such amounts.

 

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(e)Notwithstanding
the foregoing, to the extent that the payment by the Company of the Executive’s Expenses more than two calendar years following
the calendar year of the Termination of Employment (the “Outside Date”) would cause the payments under this Agreement
to not be exempt from Code Section 409A, no such payments after the Outside Date shall be payable hereunder.

 

17.Nonalienation
of Benefits. Except in so far as this provision may be contrary to applicable law, no sale, transfer, alienation, assignment,
pledge, collateralization or attachment of any benefits under this Agreement shall be valid or recognized by the Company.

 

18.ERISA.
This Agreement is an unfunded compensation arrangement for a member of a select group of the Company’s management and any
exemptions under ERISA, as applicable to such an arrangement, shall be applicable to this Agreement.

 

19.Reporting
and Disclosure. The Company, from time to time, shall provide government agencies with such reports concerning this Agreement
as may be required by law, and the Company shall provide the Executive with such disclosure concerning this Agreement as may be
required by law or as the Company may deem appropriate.

 

20.Notices.
Any notice required or permitted by this Agreement shall be in writing, sent by registered or certified mail, return receipt requested,
addressed to the Board and the Company at the Company’s then principal office, or to the Executive at the Executive’s
last address on file with the Company, as the case may be, or to such other address or addresses as any party hereto may from time
to time specify in writing for the purpose of this Agreement in a notice given to the other parties in compliance with this section.
Notices shall be deemed given when received.

 

21.Miscellaneous/Severability.
A waiver of the breach of any term or condition of this Agreement shall not be deemed to constitute a waiver of any subsequent
breach of the same or any other term or condition. This Agreement is intended to be performed in accordance with, and only to the
extent permitted by, all applicable laws, ordinances, rules and regulations. To the extent that any provision or benefit under
this Agreement is not deemed to be in accordance with any applicable law, ordinance, rule or regulation, the noncomplying provision
shall be construed, or benefit limited, to the extent necessary to comply with all applicable laws, ordinances and regulations
and any such provision or benefit shall not affect the validity of any other provision or benefit provided by this Agreement. The
headings in this Agreement are inserted for convenience of reference only and shall not be a part of or control or affect the meaning
of any provision hereof.

 

22.Governing
Law. To the extent not preempted by Federal law, this Agreement shall be governed and construed in accordance with the
laws of the State of Michigan, without regard to its conflicts of law rules.

 

23.Entire
Agreement. This document represents the entire agreement and understanding of the parties with respect to the subject matter
of the Agreement (other than the Non-Competition Agreement, and the Proprietary Information and Invention Agreement, which shall
remain in full force and effect after the execution of this Agreement) and it may not be altered or amended except by an agreement
in writing that is executed by both parties to this Agreement. Specifically, this Agreement supersedes any other severance pay
provisions in effect on the date of this Agreement, including, but not limited to, those contained in the Prior Agreement or the
Non-Competition Agreement.

 

    	 	12	 

     

    

 

24.Code
Section 409A. It is intended that payments and benefits provided under this Agreement shall be in compliance with or exempt
from Code Section 409A and the regulations and guidance thereunder, and the terms of this Agreement are to be interpreted and construed
accordingly. Each payment (including each payment in a series of payments) under this Agreement shall each be treated as a separate
payment for purposes of Code Section 409A, and the terms “termination”, “Termination of Employment”, and
phrases of like kind are intended to mean “separation from service” as defined by Code Section 409A. To the extent
a payment is subject to Code Section 409A, in no event may the Executive, directly or indirectly, designate the calendar year of
any payment to be made under this Agreement. To the extent the time period for the Executive to sign and not revoke a release pursuant
to Section 3(b) or Section 4(c) of this Agreement spans two calendar years, the payment or payments, to the extent subject to Code
Section 409A, shall always commence in the second calendar year. In no event will the Company be responsible for any Code Section
409A tax or penalty owed by the Executive or Executive’s spouse or beneficiary, with regard to any payment or benefit provided
for under this Agreement. All reimbursements and in-kind benefits provided under this Agreement that constitute “nonqualified
deferred compensation” within the meaning of Code Section 409A shall be made or provided in accordance with the requirements
under Code Section 409A, including that: (a) in no event shall reimbursements by the Company under this Agreement be made later
than the end of the calendar year next following the calendar year in which such fees and expenses were incurred, provided that
Executive has submitted an invoice for such fees or expenses at least 30 days before the end of the calendar year next following
the calendar year in which such fees and expenses were incurred and complied with all Company policies regarding such reimbursements;
(b) the amount of in-kind benefits or expenses that the Company is obligated to provide or pay in any given calendar year (other
than medical reimbursements described in Treas. Reg. Section 1.409A-3(i)(1)(iv)(B)) shall not affect the in-kind benefits or expenses
eligible for reimbursement that the Company is obligated to provide or pay in any other calendar year; (c) the Executive’s
right to have the Company pay or provide such reimbursement and in-kind benefits may not be liquidated or exchanged for any other
benefit; and (d) in no event shall the Company’s obligations to make such reimbursements or to provide such in-kind benefits
apply later than the periods set forth in this agreement. The benefits provided in Sections 3(b)(iii) and 4(c)(iii) of this Agreement
shall only be provided to the extent that the Company determines that such benefit will be nondiscriminatory under Code Section
105(h) and any nondiscrimination requirements applied under the Affordable Care Act.

 

    	 	13	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year first written above.

 

	 	PERCEPTRON, INC.
	 	 
	 	 
	 	By:	/s/ Margaret Kaczmarek
	 	 	Margaret Kaczmarek
	 	 	 
	 	 	 
	 	/s/ David Watza
	 	David Watza

 

 

 

    	 	14	 

     

    

 

EXHIBIT
a

RELEASE AGREEMENT

 

THIS AGREEMENT (“Agreement”)
is made by and between ______________________ (“Employee”) and Perceptron, Inc. (the “Company”).

 

RECITALS

 

A.Employee has
terminated employment with the Company, effective __________, ____.

 

B.Employee has
been given the opportunity to review this Agreement, to consult with legal counsel, and to ascertain his rights and remedies.

 

C.Employee and
Company, without any admission of liability, desire to settle with finality, compromise, dispose of, and release any and all claims
and demands asserted or which could be asserted arising out of Employee’s employment at and separation from Company.

 

In consideration of
the foregoing and of the promises and mutual covenants contained herein, it is hereby agreed between Employee and Company as follows:

 

AGREEMENT

 

1.In exchange for
the good and valuable consideration set forth in that certain Agreement, made as of February 11, 2014, between the Company and
Employee (the “Severance Agreement”), Employee hereby releases, waives and discharges any and all manner of action,
causes of action, claims, rights, charges, suits, damages, debts, demands, obligations, attorneys fees, and any and all other liabilities
or claims of whatsoever nature, whether in law or in equity, known or unknown, including, but not limited to, age discrimination
under the Age Discrimination in Employment Act of 1967 (as amended), employment discrimination prohibited by other federal, state
or local laws, and any other claims, which Employee has claimed or may claim or could claim in any local, state or federal or other
forum, against Company, its directors, officers, employees, agents, attorneys, successors and assigns as a result of or relating
to Employee’s employment at and separation from Company and as an officer of Company as a result of any acts or omissions
by Company or any of its directors, officers, employees, agents, attorneys, successors or assigns (“Covered Acts or Omissions”)
which occurred prior to the date of this Agreement; excluding only those for indemnification under the Company’s articles
of incorporation, bylaws or applicable law by reason of his service as an officer or director of the Company and those arising
under the Severance Agreement between the Parties dated August 6, 2014.

 

2.Employee agrees
to immediately return to Company all property, assets, manuals, materials, information, notes, reports, agreements, memoranda,
customer lists, formulae, data, know-how, inventions, trade secrets, processes, techniques, and all other assets, materials and
information of any kind or nature, belonging or pertaining to Company (“Company Information and Property”), including,
but not limited to, computer programs and diskettes or other media for electronic storage of information containing Company Information
and Property, in Employee’s possession, and Employee shall not retain copies of any such Company Information and Property.
Employee further agrees that from and after the date hereof he will not remove from Company’s offices any Company Information
and Property, nor retain possession or copies of any Company Information and Property.

 

    	 	1	 

     

    

 

3.Employee agrees
that he shall never make any statement that negatively affects the goodwill or good reputation of the Company, or any officer or
director of Company, except as required by law or to enforce his rights, and except that such statements may be made to members
of the Board of Directors of the Company.

 

4.Employee covenants
and agrees that he shall never commence or prosecute, or knowingly encourage, promote, assist or participate in any way, except
as required by law, in the commencement or prosecution, of any claim, demand, action, cause of action or suit of any nature whatsoever
against Company or any officer, director, employee or agent of Company (“Covered Litigation”) that is based upon any
claim, demand, action, cause of action or suit released pursuant to this Agreement or involving or based upon the Covered Acts
and Omissions.

 

5.Employee further
agrees that he has read this Agreement carefully and understands all of its terms.

 

6.Employee understands
and agrees that he was advised to consult with an attorney and did so prior to executing this Agreement.

 

7.Employee understands
and agrees that he has been given twenty-one (21) days within which to consider this Agreement.

 

8.Employee understands
and agrees that he may revoke this Agreement for a period of seven (7) calendar days following the execution of this Agreement
(the “Revocation Period”) and any payments or agreements conditioned upon his signing this Agreement shall not be paid
until the Revocation Period expires and such payments shall not be required to be paid and such agreements shall be deemed revoked
if this Agreement is revoked. This Agreement is not effective until this revocation period has expired. Employee understands that
any revocation, to be effective, must be in writing and either (a) postmarked within seven (7) days of execution of this Agreement
and addressed to Perceptron, Inc., 47827 Halyard Drive, Plymouth, Michigan 48170 or (b) hand delivered within seven (7) days of
execution of this Agreement to Perceptron, Inc., 47827 Halyard Drive, Plymouth, Michigan 48170. Employee understands that if revocation
is made by mail, mailing by certified mail, return receipt requested, is recommended to show proof of mailing.

 

9.In agreeing to
sign this Agreement and separate from Company, Employee is doing so completely voluntarily and of his own free-will and without
any encouragement or pressure from Company and agrees that in doing so he has not relied on any oral statements or explanations
made by Company or its representatives.

 

10.Both parties
agree not to disclose the terms of this Agreement to any third party, except as is required by law, or as is necessary for purposes
of securing counsel from either parties’ attorneys or accountants.

 

    	 	2	 

     

    

 

11.This Agreement
shall not be construed as an admission of wrongdoing by Company.

 

12.This Agreement
contains the entire agreement between Employee and Company regarding the matters set forth herein. Any modification of this Agreement
must be made in writing and signed by Employee and each of the entities constituting the Company.

 

13.This Agreement
shall be governed by and construed in accordance with the domestic laws of the State of Michigan, without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of Michigan or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of Michigan.

 

14.In the event
any provision of this Agreement or portion thereof is found to be wholly or partially invalid, illegal or unenforceable in any
judicial proceeding, then such provision shall be deemed to be modified or restricted to the extent and in the manner necessary
to render the same valid and enforceable, or shall be deemed excised from this Agreement, as the case may require, and this Agreement
shall be construed and enforced to the maximum extent permitted by law, as if such provision had been originally incorporated herein
as so modified or restricted, or as if such provision had not been originally incorporated herein, as the case may be.

 

15.If there is
a breach or threatened breach of the provisions of this Agreement, Company may, in addition to other available rights and remedies,
apply to any court of competent jurisdiction for specific performance and/or injunctive relief in order to enforce, or prevent
any violation of, any of the provisions of this Agreement.

 

The parties hereto
have entered into this Agreement as of this ____ day of _____, ______.

 

 

	 	PERCEPTRON, INC.
	 	 
	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	 	 
	 	EMPLOYEE
	 	 	 
	 	 	 
	 	 

 

 

 

 

    	 	3ex101.htm

Date of Grant: October 23, 2015

OCTAGON 88 RESOURCES, INC.

RESTRICTED STOCK AWARD AGREEMENT

THIS AGREEMENT is made by and between Octagon 88 Resources, Inc., a Nevada corporation (the “Company”) and [_______] (“Director”).

1.  Award of Restricted Stock.  In lieu of $[_____] in compensation owed to the Director for services rendered on behalf of the Company, the Company hereby grants to Director, in the manner and subject to the conditions hereinafter provided, [________] ([_____]) shares of the Company’s common stock (the “Restricted Stock”). As used in this Agreement, the term “Restricted Stock” refers to the stock granted under this Agreement and includes all securities received (a) in replacement of the Restricted Stock, (b) as a result of stock dividends or stock splits in respect of the Restricted Stock, and (c) in replacement of the Restricted Stock in a recapitalization, merger, reorganization or the like.

In exchange for the issuance of the Shares, Director hereby agrees to release the Company and its affiliates from, and waive his rights to, any and all claims relating to compensation owed to Director by the Company, up through the date hereof.

This Restricted Stock is specifically conditioned on compliance with the terms and conditions set forth herein.

2.   Vesting of Restricted Stock; Deliveries of Certificates.

2.1 Vesting.  The right to unrestricted ownership in the Restricted Stock under this Agreement shall vest with respect to 1/3rd of the total number of shares of Restricted Stock on January 1, 2016, 1/3rd of the total number of shares of Restricted Stock on January 1, 2017, and the remainder on January 1, 2018, subject to Director’s continuous service to the Company or any of its subsidiaries, as an officer, director, employee or service provider.  Notwithstanding the foregoing, all unvested Restricted Stock shall vest immediately upon the sale or acquisition of the Company or upon Director’s death.

2.2  Deliveries by the Company.  A certificate evidencing the Restricted Stock shall be issued by the Company in Director’s name, pursuant to which Director shall have voting rights and shall be entitled to receive all dividends. Notwithstanding any other provisions of this Agreement, the issuance or delivery of any shares under this Agreement may be postponed for such period as may be required to comply with applicable requirements of any national securities exchange or any requirements under any federal or state securities law or regulation. the Company shall not be obligated to (a) issue or deliver any Restricted Stock if the issuance or delivery thereof shall constitute a violation of any provision of any law or regulation of any governmental authority or any national securities exchange, (b) qualify the issuance of the Restricted Stock in any jurisdiction, or (c) register the shares of Restricted Stock with the Securities and Exchange Commission.

3.   Adjustments.  Should any change be made to the common stock of the Company by reason of any stock split, reverse stock split, stock dividend, combination of shares, exchange of shares or other change affecting the outstanding common stock as a class without the Company’s receipt of consideration, the Company shall make appropriate adjustments to the number and/or class of securities in effect under this Agreement in order to prevent the dilution or enlargement of benefits thereunder; provided however, that the number of shares subject to this Agreement shall always be a whole number and the Company shall make such adjustments as are necessary to insure this Restricted Stock Award is set as whole shares.

  

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4.  Suspension and Cancellation of Stock

4.1  Mandatory Suspension and Cancellation of Stock.  In the event the Company reasonably believes Director has committed an act of misconduct including, but limited to acts specified below, the Company may suspend Director’s right in his Restricted Stock Award granted hereunder pending final determination by the Board of Directors of the Company (the “Board”). If Director is determined by the Board to have:

(a)           committed an act of embezzlement, fraud, dishonesty, breach of fiduciary duty to the Company or a subsidiary;

(b)           deliberately disregarded the rules or policies of the Company or a subsidiary which resulted in loss, damage or injury to the Company or a subsidiary;

(c)           made any unauthorized disclosure of any trade secret or confidential information of the Company or a subsidiary;

(d)           induced any partner, collaborator, client or customer of the Company or a subsidiary to break any contract with the Company or a subsidiary or induced any principal for whom the Company or a subsidiary acts as agent to terminate such agency relations;

(e)           engaged in any substantial conduct which constitutes unfair competition with the Company or a subsidiary; or

(f)           violated any requirement of the Foreign Corrupt Practices Act or any analogous foreign regulations,

neither Director nor Director’s estate shall be entitled to shares of the Restricted Stock hereunder. The determination of the Board shall be final and conclusive. In making its determination, the Board shall give the Director an opportunity to appear and be heard at a hearing before the full Board and present evidence on Director’s behalf.

5.  Reservation of Shares.  The Company agrees that prior to the issuance of the Restricted Stock represented by this Agreement, there shall be reserved for issuance such number of the Company’s authorized and unissued shares as shall be necessary to satisfy the terms and conditions of this Agreement.

6.   Rights of Directors.

6.1  No Obligation To Employ.  Nothing in this Agreement will confer or be deemed to confer on Director any right to continue in the employ of, or to continue any other relationship with, the Company or a subsidiary or to limit in any way the right of the Company or a subsidiary to terminate Director’s employment or other relationship at any time, with or without cause.

6.2  Compliance With Code Section 162(m).  At all times when the Company determines that compliance with Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”) is required or desired, the Restricted Stock if granted to a Named Executive Officer shall comply with the requirements of Code Section 162(m). In addition, in the event that changes are made to Code Section 162(m) to permit greater flexibility with respect to this Agreement the Company may, subject to this Section 6, make any adjustments it deems appropriate.

  

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7.  Director Representations.

7.1  Purchase for Own Account.  Director represents that he is acquiring the Restricted Stock solely for his own account and beneficial interest for investment and not for sale or with a view to distribution of the Restricted Stock or any part thereof, has no present intention of selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the same, and does not presently have reason to anticipate a change in such intention.

7.2  Information and Sophistication.  Director hereby: (i) acknowledges that he has received all the information he has requested from the Company and that he considers necessary or appropriate for deciding whether to acquire the Restricted Stock, (ii) represents that he has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Restricted Stock and to obtain any additional information necessary to verify the accuracy of such information and (iii) further represents that he has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risk of this investment.

7.3  Ability to Bear Economic Risk.  Director acknowledges that investment in the Restricted Stock involves a high degree of risk, and represents that he is able, without materially impairing his financial condition, to hold the Restricted Stock for an indefinite period of time and to suffer a complete loss of his investment.

7.4  Foreign Persons.  If Director is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), Director hereby represents that he has satisfied himself as to the full observance of the laws of his jurisdiction in connection with any invitation to purchase the Restricted Stock or any use of this Agreement, including (i) the legal requirements within his jurisdiction for the purchase of the Restricted Stock, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any government or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Restricted Stock.  The Company’s offer and sale and Director’s subscription and payment for and continued beneficial ownership of the Restricted Stock will not violate any applicable securities or other laws of Director’s jurisdiction.

7.5  Further Assurances.  Director agrees and covenants that at any time and from time to time it will promptly execute and deliver to the Company such further instruments and documents and take such further action as the Company may reasonably require in order to carry out the full intent and purpose of this Agreement and to comply with state or federal Restricted Stock laws or other regulatory approvals.

8.  Securities Law And Other Regulatory Compliance. The Company shall not be obligated to issue any Restricted Stock with respect to this Agreement unless such shares are at that time effectively registered or exempt from registration under the federal securities laws and the offer and sale of the shares are otherwise in compliance with all applicable securities laws. Director may be required to furnish representations or undertakings deemed appropriate by the Company to enable the offer and sale of the shares or subsequent transfers of any interest in such shares to comply with applicable securities laws. Evidences of ownership of shares acquired with respect to this Agreement shall bear any legend required by, or useful for purposes of compliance with, applicable securities laws or this Agreement.

9.  Restricted Securities.  Director understands that the Restricted Stock are characterized as “restricted securities” under the Securities Act inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under the Securities Act and applicable regulations thereunder such securities may be resold without registration under the Securities Act only in certain limited circumstances. Accordingly, the Restricted Stock, absent an effective registration statement, can only be sold pursuant to an exemption from registration, such as Rule 701 or Rule 144 of the Securities Act. Director understands that the Company is under no obligation to register any of the securities sold hereunder.

 

  

3

  

  

 

10. Restrictive Legends and Stop-Transfer Orders.

10.1  Legends.  Director understands and agrees that the Company will place the legends set forth below or similar legends on any stock certificate(s) evidencing the Restricted Stock, together with any other legends that may be required by state or federal securities laws, the Company’s Articles of Incorporation or Bylaws, any other agreement between Director and the Company or any agreement between Director and any third party:

THE SECURITIES REPRESENTED BY THIS  CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).  THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT.

 

  

10.2 Stop-Transfer Instructions.  Director agrees that, to ensure compliance with the restrictions imposed by this Agreement, the Company may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

10.3  Refusal to Transfer.  The Company will not be required (i) to transfer on its books any Restricted Stock that have been sold or otherwise transferred in violation of any of the provisions of this Agreement, or (ii) to treat as owner of such Restricted Stock, or to accord the right to vote or pay dividends, to any purchaser or other transferee to whom such Restricted Stock have been so transferred.

11.  Attorneys’ Fees.  In the event of any litigation, arbitration, or other proceeding arising out of this Agreement, the prevailing party shall be entitled to an award of costs, including an award of reasonable attorneys’ fees. Any judgment, order, or award entered in any such proceeding shall designate a specific sum as an award of attorneys’ fees and costs incurred. This attorneys’ fee provision is intended to be severable from the other provisions of this Agreement, shall survive any judgment or order entered in any proceeding, and shall not be deemed merged into any such judgment or order, so that such further fees and costs as may be incurred in the enforcement of an award or judgment or in defending it on appeal shall likewise be recoverable by further order of a court or panel or in a separate action as may be appropriate.

12.  Miscellaneous Provisions.

12.1  Notice.  All notices to be given by either party to the other shall be in writing and may be transmitted by personal delivery, facsimile transmission, overnight courier or mail, registered or certified, postage prepaid with return receipt requested; provided, however, that notices of change of address or telex or facsimile number shall be effective only upon actual receipt by the other party. Notices shall be delivered at the following addresses, unless changed as provided for herein.

         To the Director:            [______]

[______]

[______]

  To the Company:       Octagon 88 Resources, Inc.

318 N Carson, ST #208

Carson City, NV 89701

  

4

  

          

 

         12.2  Entire Agreement.  This Agreement constitutes the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) that relate to the subject matter hereof.

         12.3  Severability; Conflicts.  Should any provision of this Agreement be held to be invalid or illegal, such illegality shall not invalidate the whole of the Agreement, but, rather, the Agreement shall be construed as if it did not contain the illegal part or narrowed to permit its enforcement, and the rights and obligations of the parties shall be construed and enforced accordingly.

 

         12.4  Choice of Law; Venue.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada, as such laws are applied to contracts entered into and performed in such state. Any action brought in connection with this Agreement shall be subject the exclusive jurisdiction of the state and federal courts sitting in Nevada in any action on a claim arising out of, under or in connection with this Agreement or the transactions contemplated by this Agreement.

         12.5  Binding Effect.  This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective heirs, executors, and successors.

         12.6  Counterparts.  This Agreement may be executed in one or more counterparts, each of which when taken together shall constitute one and the same instrument.

[Signature Page Follows]

  

5

  

         IN WITNESS WHEREOF, this Restricted Stock Award Agreement has been executed as of the 23rd day of October, 2015.

OCTAGON 88 RESOURCES, INC:

_________________________

Guido Hilekes

President

DIRECTOR:

_________________________

[___________]

  

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