Document:

Exhibit 10.4

 

 

 

BIOANALYTICAL SYSTEMS, INC.

 

EMPLOYEE STOCK OPTION AGREEMENT

 

THIS AGREEMENT, made this 13th
day of May, 2016, by and between Bioanalytical Systems, Inc., an Indiana corporation with its principal office at 2701 Kent Avenue,
West Lafayette, Indiana (hereinafter called “Company”), and Jill C Blumhoff, residing at 650 Perrin Avenue, Lafayette,
IN 47904 (hereinafter called the “Grantee”), pursuant to, and subject to, the terms, conditions and limitations contained
in the Company’s 2008 Stock Option Plan (hereinafter called the “Plan”), a copy of which is available upon request.

 

WITNESSETH THAT:

 

WHEREAS, in the interests of affording an
incentive to the Grantee to give his best efforts to the Company as a company officer, employee, or member of the Board of Directors,
the Company wishes to provide that the Grantee shall have an Option to buy Common Shares of the Company:

 

NOW, THEREFORE, it is hereby mutually agreed
to as follows:

 

1. Pursuant to, and subject to, the terms,
conditions and limitations contained in the Company’s 2008 Stock Option Plan (hereinafter called the “Plan”),
the Company hereby grants to the Grantee the right and Option to purchase, on the terms and conditions hereinafter set forth, all
or any part of an aggregate of 10,000 shares (hereinafter called “Subject Shares”) of the presently authorized, but
unissued, or treasury, Common Shares of the Company, hereinafter called the “Common Shares”) at a purchase price of
$0.94 per share, exercisable in whole or in part from time to time subject to the limitation that no Option may be exercised
with respect to fewer than twenty-five (25) shares then subject to Option hereunder, in which event any exercise must be as to
all such shares and subject to the further limitation that the Options represented by the Agreement shall first become exercisable
in three equal installments pursuant to the following sentence. The Option may be exercised as to the shares covered by the first
installment from and after the first anniversary of the grant of the Option, with the second and third installments becoming exercisable
on the two succeeding anniversary dates. Unless sooner terminated under the terms of the Plan or this Agreement, the Option shall
expire as to all shares subject to purchase hereunder on the 10th anniversary date of this Agreement if not exercised
on or before such date.

 

 

    	 	 	 

     

    

 

2. Subject to the limitation specified in
Section 1 hereof the terms and conditions of the Plan (including, but not limited to, the exercise provisions of Section 7 of the
Plan, and the termination provisions of Section 8 of the Plan), the Grantee may from time to time exercise this Option by delivering
a written notice of exercise and subscription agreement to the Secretary of the Company specifying the number of whole shares to
be purchased, accompanied by payment (i) in cash, (ii) by certified check or bank cashier’s check, (iii) through the tender
to the Company of Common Shares of the Company owned by the Grantee or by withholding of Common Shares of the Company that are
subject to the Option, which Common Shares shall be valued, for purposes of determining the extent to which the purchase price
has been paid, at their fair market value on the date of exercise as determined in Section 7(c) of the Plan, or (iv) by a combination
of the methods described in (i), (ii), or (iii). The Company may, in its sole discretion, refuse to withhold Common Shares of the
Company as payment of the exercise price of the Option. Such exercise shall be effective upon receipt by the Secretary of such
written notice, subscription agreement and payment of the purchase price. Only the Grantee may exercise the Option during the lifetime
of the Grantee. No fractional shares may be purchased at any time hereunder.

 

3. Upon the effective exercise of the Option,
or any part thereof, certificates representing the shares so purchased, marked fully paid and non-assessable, shall be delivered
to the person who exercised the Option, except as provided in Section 6(j) of the Plan. Until certificates representing such shares
shall have been issued and delivered, the Grantee shall not have any of the rights or privileges of a shareholder of the Company
in respect of any such shares.

 

4. In the event that, prior to the delivery
by the Company of all the Subject Shares, there shall be an increase or reduction in the number of Common Shares of the Company
issued and outstanding by reason of any subdivision or consolidation of Common Shares or any other capital adjustment, the number
of shares then subject to this option shall be increased or decreased as provided in Section 11 of the Plan.

 

5. The option and the rights and privileges
conferred by this Option Agreement shall not be assigned or transferred by the Grantee in any manner except by will or under the
laws of descent and distribution. In the event of any attempted assignment or transfer in violation of this Section 5, the Option,
rights and privileges conferred by this Option Agreement shall become null and void.

 

6. Nothing herein contained shall be deemed
to create any limitation nor restriction upon such rights as the Company would otherwise have to terminate a person as an employee
of the Company.

 

7. The Option, rights and privileges herein
conferred are granted subject to the terms and conditions set forth herein and in the Plan.

 

8. Any notices to be given or served under
the terms of this Option Agreement shall be addressed to the Secretary of the Company at 2701 Kent Avenue, West Lafayette, Indiana,
and to the Grantee at the address set forth on page one of this Option Agreement, or such other address or addresses as either
party may hereafter designate in writing to the other. Any such notice shall be deemed to have been duly given or served, and deposited
in the United States mail.

 

    	 	 	 

     

    

 

9. The interpretation by the Compensation
Committee, appointed by the Company’s Board of Directors to administer the Plan, or any provisions of the Plan or of this
Option Agreement shall be final and binding on the Grantee unless otherwise determined by the Company’s Board of Directors.

 

10. This Option Agreement shall be governed
by the laws of the State of Indiana.

 

IN WITNESS WHEREOF, the Company and the
Grantee have signed this Option Agreement as of the day and year first above written.

 

	 	“COMPANY”
	 	 
	 	BIOANALYTICAL SYSTEMS, INC.
	 	 
	 	By:
	 	 
	 	Jacqueline M. Lemke
	 	President and Chief Executive Officer
	 	 
	 	“GRANTEE”
	 	 
	 	Print:
	 	 
	 	Sign:Exhibit 10.1

 

 

AMENDMENT OF CONCESSION AGREEMENT

 

between

 

THE CITY OF NEW YORK ACTING BY AND THROUGH
ITS DEPARTMENT OF SMALL BUSINESS SERVICES 

 

and

 

FIRSTFLIGHT
HELIPORTS, LLC D/B/A SAKER AVIATION SERVICES, as successor in interest
to Saker Aviation Services, Inc. 

 

 THIS
AMENDMENT OF CONCESSION AGREEMENT (this “Amendment”) is made as of the   th day of , 2016, by and between THE
CITY OF NEW YORK, acting by and through its Department of Small Business Services, (the “City”), having an
address at 110 William Street, 7th Floor, New York, New York 10038 and FIRSTFLIGHT HELIPORTS, LLC D/B/A SAKER
AVIATION SERVICES, as
successor in interest to Saker Aviation Services, Inc., a Nevada corporation, having an office at 20 South Street, Pier
6, East River, New York, New York 10004 (the “Operator”).

 

W
I T N E S S E T H

 

WHEREAS, pursuant to
a Concession Agreement dated as of July 23, 2008 by and between the City and FirstFlight, Inc. (the “Concession Agreement”
or “Agreement”), and a Consent and Agreement dated September 29, 2009 by and between the City and FirstFlight Heliports,
LLC, a wholly owned subsidiary of Saker Aviation Services, Inc. f/k/a FirstFlight, Inc. and FirstFlight Heliports, LLC d/b/a Saker
Aviation Services, which agreements were amended by a further agreement dated February 2, 2016 (the “February Agreement”)
(collectively, the “Original Concession Agreement” or “Original Agreement”), Operator is the fixed base
operator of the Downtown Manhattan Heliport (“DMH”) which consists of 6,300 total square feet of terminal space and
71,900 square feet of barge and pier space together with all buildings and improvements as generally described in Exhibit “A”
of the Concession Agreement; and

 

WHEREAS, pursuant to the Amended and Restated
Maritime Contract between the City and the New York City Economic Development Corporation (“NYCEDC”), the City has
retained NYCEDC to engage in, inter alia, various activities intended to promote the economic development of the City’s waterfront
property and related transportation facilities, including the operation of DMH, and in that capacity, is the Agreement Administrator
of the Original Concession Agreement; and

 

WHEREAS, the City and Operator wish to further
amend the Original Concession Agreement as set forth below to extend the term and adjust the Minimum Annual Guarantee, the use
and other ancillary items; and

 

     

     

    

 

WHEREAS,
the Franchise and Concession Review Committee ("FCRC"), has authorized NYCEDC , on behalf of the New York City
Department of Small Business Services, to use a different procedure to enter into this Amendment.

 

NOW, THEREFORE, for and in consideration
of the mutual covenants herein contained and other good and valuable consideration, the adequacy and receipt of which are hereby
acknowledged, the City and the Operator hereby agree as follows:

 

		1.	Definitions. All capitalized terms used herein shall have the meanings ascribed to them in the Original Concession Agreement,
unless otherwise specifically set forth herein to the contrary. The following definitions shall be added to Section 1.01 of the
Agreement:

 

“Tourist Flight” or “Tourist
Flight Operations” means an aircraft first taking off from DMH, then flying along the Authorized Routes, and then landing
back at DMH.

 

		2.	Effective Date. This Amendment is effective upon written notice to the Operator from the Agreement Administrator of
registration with the Comptroller (the “Effective Date”).

 

		3.	Modification of Concession Agreement. The Original Concession Agreement is hereby modified as follows:

 

		a.	As of the Effective Date, Section 2.01 of the Concession Agreement is deleted in its entirety and replaced with the following:

 

Section 2.01. Term.
The initial term of this Agreement (“Initial Term”) shall commence on the date set forth in a written notice to proceed
from Agreement Administrator (“Commencement Date”) and continue until midnight on April 30, 2021 unless sooner terminated
in accordance with the provisions hereof (such date is hereinafter referred to as the “Expiration Date”). Six (6) months
prior to the expiration of the Agreement, the City, at its sole discretion, may offer Operator an option to renew the Agreement
for a one year period (the “First Renewal Term”) upon the same terms and conditions
applicable during the initial term except as to the Minimum Annual Guarantee, which, in the event of any such renewal, shall be
as provided in Section 3.01(b) hereof, provided that (1) the Agreement shall then be in full force and effect in accordance with
its terms, (2) there shall not then exist any uncured default hereunder at the time of exercise of the option or at the beginning
of any extension term and (3) Operator shall accept the option in writing within ten (10) days of notice. Six (6) months prior
to the expiration of the renewal term, the City, at its sole discretion, may offer Operator another option to renew the Agreement
for an additional one year period (the “Second Renewal Term,” and together with the First Renewal Term, the “Renewal
Term”) upon the same terms and conditions applicable during the initial term except as to the Minimum Annual Guarantee, which,
in the event of any such renewal, shall be as provided in Section 3.01(b) hereof, provided that (1) this Agreement shall then be
in full force and effect in accordance with its terms, (2) there shall not then exist any uncured default hereunder at the time
of exercise of the option or at the beginning of any extension term and (3) Operator shall accept the option in writing within
ten (10) days of notice. In the event that Operator fails to timely notify Agreement Administrator in writing of its acceptance
of the First Renewal Term or the Second Renewal Term, as applicable, in the manner provided herein, then Operator shall have waived
or forfeited its right to extend this Agreement for any renewal term and this Amendment shall expire on the Expiration Date. (The
Initial Term and the Renewal Terms shall be collectively referred to as the “Term”)

 

     

     

    

 

		b.	As of the Effective Date, the following paragraph (x) is added to Section 2.02(a) of the Concession Agreement:

 

(x) In addition to any other reporting and recordkeeping
required under the Agreement, commencing July 1, 2016, and again each month thereafter, within fifteen (15) calendar days of the
first day of the month for the duration of the Term, the Operator shall cause to be prepared and delivered a monthly report to
The New York City Council (“City Council”) at City Hall, New York, NY 10007, Attn.: Chief of Staff with a copy to NYCEDC
at 110 William Street, New York, NY 10038, Attn.: Senior Director of Aviation, detailing (a) the number of Tourist Flight Operations
conducted out of the DMH for the previous calendar month, (b) a comparison to the relevant monthly maximum number of Tourist Flight
Operations set forth in Section 2.03 and (c) the number and locations of any deviations of Tourist Flight Operations from the Authorized
Routes which result in flights over land or piers, including land or piers on Governors Island and Staten Island. Agreement Administrator
shall commission and the Operator shall pay, within reason, for reports of compliance, to be prepared by an impartial party.

 

		c.	As of the Effective Date, the following paragraph (xi) is added to Section 2.02(a) of the Concession Agreement:

 

(xi) establish and maintain a system approved by Agreement
Administrator to monitor air quality in the vicinity of DMH for the duration of the Term. All expenses associated with such monitoring
system are to be borne by the Operator. The Operator shall deliver monthly readings to the City Council with a copy to Agreement
Administrator at the following addresses: (1) to the City Council at New York City Council, City Hall, New York, NY 10007, Attn.:
Chief of Staff; (2) to Agreement Administrator at NYCEDC, 110 William Street, New York, NY 10038, Attn.: Senior Director of Aviation.

 

		d.	As of the Effective Date, the following paragraph (xii) is added to Section 2.02(a) of the Concession Agreement:

 

(xii) actively research available technologies to further
mitigate helicopter noise, reduce emissions, and promote fuel efficiency, and implement any such technology as it becomes commercially
feasible at the sole cost and expense of the Operator.

 

     

     

    

 

		e.	As of the Effective Date, the following paragraph (xiii) is added to Section 2.02(a) of the Concession Agreement:

 

(xiii) ensure that all flights for tour purposes leaving
from or coming into DMH (i) shall not undertake any routes other than those set forth in the 2010 Helicopter Sightseeing Plan (attached
hereto as Exhibit M), as modified to remove the Yankee Stadium routing and as may be further modified from time to time, (ii) shall
not fly over Staten Island while conducting Tourist Flight Operations originating out of the DMH, (iii) shall not fly over Governors
Island before the Tourist Flight Operations begin and after the Tourist Flight Operations end even if transitioning to and from
DMH, and (iv) provided it is for tour purposes leaving from or coming into DMH, shall make best efforts, working in coordination
with the air traffic control towers at Newark International Airport and LaGuardia, to fly at maximum altitudes permitted under
FAA rules while en route to DMH from facilities outside New York City (the “Authorized Routes”).

 

		f.	As of the Effective Date, a new Exhibit L is added to the Concession Agreement in the form attached to this Amendment as Exhibit
2.

 

		g.	As of the Effective Date, the following paragraph (xiv) is added to Section 2.02(a) of the Concession Agreement:

 

(xiv) make best efforts to prevent helicopters at DMH
from idling for a period greater than ten minutes.

 

		h.	As of the Effective Date, the fifth paragraph of Section 2.03 of the Concession Agreement is deleted in its entirety and replaced
with the following, including Exhibit 3 attached hereto:

 

The City or Agreement Administrator may prelude certain
types of helicopters during certain hours of operation. Operator acknowledges that the hours of operation of DMH for take-offs
and landings shall be limited as follows unless otherwise modified by the City:

 

		(i)	Monday through Friday to 7:00 a.m. to 10:00 p.m.; Tourist Flights from 9:00 a.m. to 7:00 p.m. only

 

		(ii)	Saturdays from 7:00 a.m. to 7:00 p.m.; Tourist Flights from 9:00 a.m. to 7:00 p.m. only

 

		(iii)	Sundays from 7:00 a.m. to 5:00 p.m.; no Tourist Flights

  

Notwithstanding the above, DMH may be used for emergency
landings and take-offs at any time. Emergency landings and take-off shall be those (i) used by any emergency service of any level
of government (e.g., police, fire, military), (ii) used for time-critical medical treatment purposes, (iii) used in addressing
any conditions where a threat to human life or safety or damage to property is present or imminent, or (iv) by operators experiencing
in-flight mechanical difficulties.

  

Commencing on June 1, 2016, Tourist Flight Operations
shall not exceed three hundred Tourist Flight Operations on any Saturday.

 

     

     

    

 

The total number of Tourist Flight Operations existing
prior to June 1, 2016 shall be reduced by Fifty Percent (50%) in accordance with the following implementation schedule:

 

		a.	Commencing June 1, 2016, the Operator shall implement a Twenty Percent (20%) reduction in the number
of Tourist Flight Operations out of the DMH on a month to month basis based on peak operational levels as set forth in Row A of
the spreadsheet attached hereto as Exhibit L and incorporated herein by reference, effectively ensuring that the number of such
operations do not exceed Eighty Percent (80%) of the peak operational levels on a monthly basis thereafter for the duration of
the Term.

 

		b.	Commencing October 1, 2016, the Operator shall again reduce total number of Tourist Flight Operations
out of the DMH on a monthly basis by a number equal to Twenty Percent (20%) of the peak operational levels set forth in Row A of
Exhibit L, ensuring that the number of such operations do not exceed Sixty Percent (60%) of the peak operational levels set forth
in Row A of Exhibit L on a monthly basis thereafter for the duration of the Term.

 

		c.	The Operator agrees that as of January 1, 2017, the Operator shall again reduce the total number
of Tourist Flight Operations out of the DMH on a monthly basis by a number equal to Ten Percent (10%) of the peak operational levels
set forth in Row A of Exhibit L, ensuring that the number of Tourist Flight Operations do not exceed Fifty Percent (50%) of the
peak operational levels set forth in Row A of Exhibit L on a monthly basis thereafter for the duration of the Term. The parties
to this Agreement explicitly acknowledge that the number of operations represented in Row B of Exhibit L represent a Fifty Percent
(50%) reduction in peak operational levels of Tourist Flight Operations conducted out of the DMH on a month-to-month basis during
calendar year 2015.

 

The City reserves the right to
reduce the maximum number of Tourist Flight Operations by an additional 50% for any or all of the remainder of the Term if:

 

		(i)	Tourist Flight Operations in any given month exceed the level for that month set forth in this
Section; or

 

		(ii)	on more than five occasions, other than in cases of emergency, Tourist Flight Operations cross
over land or piers, including those lands or piers on Governors Island or Staten Island, and are documented as having done so by
an independent professional commissioned by the Agreement Administrator and paid for by the Fixed Base Operator.

 

Upon each additional occurrence
of the facts set forth in subparagraph (i) or (ii) above, pursuant to the terms herein, the City shall have the right to reduce
the then maximum number of Tourist Flight Operations by an additional 50%.

 

		i.	As of the Effective Date, Exhibit E referenced in Section 3.01(b) of the Concession Agreement and attached thereto is deleted
in its entirety and replaced with the document attached hereto as Exhibit 1.

 

     

     

    

 

		j.	As of the Effective Date, Section 3.01(g) of the Concession Agreement and Paragraph 3 of the February Agreement are deleted
in their entirety and replaced with the following:

 

All payments of the Retention Payments and other payments
due from Operator shall be directed to Agreement Administrator at:

 

New York City Economic Development Corporation

 

110 William Street

 

New York, NY 10038

 

Attn: Downtown Heliport Agreement Administrator

 

Or at such other location as Agreement Administrator
may from time to time designate by written notice.

 

		k.	The following Sections 9.15 and 9.16 are added to the Concession Agreement:

 

Section 9.15. This Amendment and the Original
Concession Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements
made and to be performed in the State of New York, excluding New York’s rules regarding conflict of laws and any rule requiring
construction against the party drafting this Amendment and/or the Original Concession Agreement.

 

Section 9.16. If any one or more of the provisions
of this Amendment and the Original Concession Agreement is deemed invalid, illegal, or unenforceable in any respect by a court
of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions contained herein shall not in
any way be affected or impaired thereby.

 

		4.	Miscellaneous.

 

		a.	This Amendment may not be amended or modified except by a writing signed by the parties.

 

		b.	This Amendment constitutes the entire agreement of the parties hereto with respect to the matters
herein amended.

 

		c.	Captions are inserted for convenience only and will not affect the construction hereof.

 

		d.	This Amendment may be executed in counterparts.

 

		e.	Rights and obligations under this Amendment may not be assigned by the Operator without the prior
written consent of the City, which shall not be unreasonably delayed or withheld.

 

		f.	Operator hereby represents and warrants that it has all necessary power and authority to execute,
deliver and perform its obligations under this Amendment. The undersigned signatory for Operator, by signing this Amendment, personally
warrants that he or she has the power and authority to enter into this Amendment on behalf of Operator and to bind Operator to
the terms and conditions of this Amendment.

 

		g.	Notwithstanding the reduction in Tourist Flight Operations set forth in Paragraphs 7 and 11 of
the February Agreement and Section 2.03 of the Concession Agreement, the City continues to maintain the authority to preclude certain
types of helicopters and further reduce flights pursuant to the terms of Section 2.03 of the Concession Agreement.

 

		h.	Except as modified by this Amendment, all of the terms and conditions of the Original Concession
Agreement are hereby in all respects ratified and confirmed. In the event of any inconsistency between the terms of this Amendment
and the Original Concession Agreement, the terms of this Amendment shall prevail.

 

 

     

     

    

 

IN WITNESS WHEREOF, the parties hereto
have executed this Amendment on the day and year first written above.

 

 

THE CITY OF NEW YORK acting by and through
the NEW YORK CITY DEPARTMENT OF SMALL BUSINESS SERVICES

 

	 	 	 	 	 
	By:	 	 	 	 	 
	Name:	 	 	 	 	 
	Title:	 	 	 	 	 

 

 

FIRSTFLIGHT HELIPORTS, LLC d/b/a Saker
Aviation Services

 

	 	 	 	 	 	 
	By:	 	 	 	 	 
	Name:	Ronald J. Ricciardi	 	 	 	 
	Title:	President	 	 	 	 

 

 

APPROVED AS TO FORM

CERTIFIED AS TO LEGAL AUTHORITY:

 

	 	 	 	 	 
	ACTING CORPORATION COUNSEL	 	 	 	 
	 	 	 	 	 	 

 

 

     

     

    

 

EXHIBIT 1 

 

EXHIBIT E

 

Retention Payments Fee Schedule

 

Operator shall pay the City the greater of Minimum Annual Guarantee
("MAG") or the Percentage of Gross Receipts (collectively, the "Retention Payments").

 

MAG:

 

	 	 	 	 	 	 	 	 	 
	Year 	1	2	3	4	5	6	7	 
	Guaranteed Minimum 	1,200,000	1,245,000	1,292,250	1,341,863	1,393,956	1,448,654	1,506,086	 
	 	Updated MAG	Extended Term 	Optional Term
	Year 	8	9	10	1	2	3	4	5
	Guaranteed Minimum 	1,148,511	814,855.02	848,098	882,870	919,068	956,749	995,976	1,036,811
	 	 	 	 	 	 	 	 	 	 	 

 

Percentage of Gross Receipts:

 

Percentage of Gross Receipts shall be paid to the City at the
rate of 18% of the first $5 million of Gross Receipts (the “Base Receipts”). Additionally, the City shall receive 25%
of Gross Receipts collected in excess of the Base Receipts.

 

MAG shall be payable in equal monthly installments on the first
day of each month during the Term of this Agreement, except that Retention Payments for Year 9 and subsequent years shall commence
on May 1, 2016 and be payable on the first day of each month thereafter for the remainder of the Term. If at any time the Percentage
of Gross Receipts for a particular operating year becomes applicable, then, in addition to the monthly installment of the MAG to
be paid on the first day of each month, the Operator shall thereafter for the remainder of such operating year pay the additional
amount due on the twentieth (20) day of each succeeding month in such operating year.

 

     

     

    

 

 

EXHIBIT 2

  

EXHIBIT M

 

     

     

    

 

 

 

 

     

     

    

 

 

 

 

 

 

 

 

 

     

     

    

 

 

EXHIBIT 3

EXHIBIT L

 

	 	Helicopter
Flight Operations Downtown Manhattan Heliport (monthly)	 	 	 	 	 	 	 	 	 
	 	Calendar
    Year 2015	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Total
	Row
    A	Baseline	2319	2216	3413	5732	6456	4607	5645	6673	5487	6979	4766	5008	59301
	Row
    B	Post
        reduction (50%) Maximum

        

        TFO/Month

        
	1160	1108	1707	2866	3228	2304	2823	3337	2744	3490	2383	2504	296451

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