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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
December 19, 2023
Infrared Cameras Holdings, Inc.
(Exact name of registrant as specified in its
charter)
Delaware
(State or other jurisdiction
of incorporation) |
001-40916
(Commission
File Number) |
86-3962954
(I.R.S. Employer
Identification No.) |
|
|
|
2105 West Cardinal Drive
Beaumont, Texas |
77705 |
(Address of principal executive offices) |
(Zip Code) |
(866) 861-0788
(Registrant’s telephone number, including
area code)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each
class |
|
Trading Symbol(s) |
|
Name of each
exchange
on which registered |
Common stock, $0.0001 par value per share |
|
MSAI |
|
Nasdaq Global Market |
Warrants to purchase common stock |
|
MSAIW |
|
Nasdaq Global Market |
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act.
INTRODUCTORY
NOTE
Unless the context otherwise requires, “we,” “us,”
“our,” “ICI” and the “Company” refer to Infrared Cameras Holdings, Inc., a Delaware corporation (f/k/a
SportsMap Tech Acquisition Corp., a Delaware corporation), and its consolidated subsidiaries following the Closing (as defined below).
Unless the context otherwise requires, references to “SMAP” refer to SportsMap Tech Acquisition Corp., a Delaware corporation,
prior to the Closing. All references herein to the “Board” refer to the board of directors of the Company.
Terms used in this Current Report on Form 8-K (this “Report”)
but not defined herein, or for which definitions are not otherwise incorporated by reference herein, shall have the meaning given to such
terms in the Proxy Statement (as defined below) in the section titled “Selected Definitions” beginning on page 1 thereof,
or the Registration Statement (as defined below) in the section titled “Selected Definitions” beginning on page ii
thereof, and such definitions are incorporated herein by reference.
Item 1.01. Entry into a Material Definitive Agreement.
As disclosed under the sections titled “Summary of the Proxy
Statement—The Business Combination” and “Proposal No. 1—The Business Combination Proposal” beginning
on pages 24 and 103, respectively, of the proxy statement (the “Proxy Statement”) filed with the Securities and Exchange Commission
(the “SEC”) by SMAP on November 13, 2023, SMAP entered into a Business Combination Agreement (the “Business Combination
Agreement”), dated December 5, 2022, as amended June 27, 2023 and September 5, 2023, with ICH Merger Sub, Inc., a direct wholly-owned
subsidiary of SMAP (“Merger Sub”), and Infrared Cameras Holdings, Inc., a Delaware corporation (“Legacy ICI”).
Pursuant to the Business Combination Agreement, Merger Sub was merged with and into Legacy ICI, with Legacy ICI surviving the merger as
a wholly-owned subsidiary of SMAP (the “Business Combination” and, together with the other transactions contemplated by the
Business Combination Agreement, the “Transactions”). In connection with the Closing, the Company changed its name from SportsMap
Tech Acquisition Corp. to Infrared Cameras Holdings, Inc. and Legacy ICI changed its name to MSAI Operating, Inc.
As previously reported on the Current Report on Form 8-K filed with
the SEC on December 11, 2023, SMAP held a special meeting of stockholders on December 8, 2023 (the “Special Meeting”), at
which the SMAP stockholders considered and adopted, among other matters, a proposal to approve the Business Combination, including (a)
adopting the Business Combination Agreement and (b) approving the other transactions contemplated by the Business Combination Agreement
and related agreements described in the Proxy Statement.
Pursuant to the terms and subject to the conditions set forth in the
Business Combination Agreement, following the Special Meeting, on December 19, 2023, the Transactions were consummated (the “Closing”).
Item 2.01 of this Report discusses the consummation of the Transactions
and the entry into agreements relating thereto and is incorporated herein by reference.
Amended and Restated Registration Rights Agreement
On December 19, 2023, in connection with the consummation of the Business
Combination and as contemplated by the Business Combination Agreement, ICI, the Sponsor, and certain other holders of ICI and SMAP capital
stock entered into an Amended and Restated Registration Rights Agreement (the “Registration Rights Agreement”). The material
terms of the Registration Rights Agreement are described in the section of the Proxy Statement beginning on page 118 titled “Proposal
No. 1—The Business Combination Proposal—Related Agreements—Registration Rights Agreement.” Such
description is qualified in its entirety by the full text of the Registration Rights Agreement, which is included as Exhibit 10.6 to this
Report and is incorporated herein by reference.
Lock-Up Agreements
On December 19, 2023, in connection with the consummation of the Business
Combination and as contemplated by the Business Combination Agreement, ICI, the Sponsor, certain others of common stock of SportsMap and
certain holders of Legacy ICI common stock, Participating Company Options (as defined below) and Participating Company RSU Awards (as
defined below) entered into lock-up agreements (the “Lock-Up Agreements”). The material terms of the Lock-Up Agreements are
described in the section of the Proxy Statement beginning on page 118 titled “Proposal No. 1—The Business Combination
Proposal—Related Agreements—Lock-Up Agreements.” Such description is qualified in its entirety by the full
text of the Lock-Up Agreements, the form of which is included as Exhibit 10.7 to this Report and is incorporated herein by reference.
Following the execution of the Lock-Up Agreements and after distribution
by the Sponsor to its members of all SportsMap Common Stock held by the Sponsor at the Closing, a total of approximately 8,348,493 shares
of the Company’s common stock were subject to the restrictions of the Lock-Up Agreements as of the Closing.
Item 2.01 Completion of Acquisition or Disposition of Assets.
As described above, on December 8, 2023, SMAP held the Special Meeting,
at which the SMAP stockholders considered and adopted, among other matters, a proposal to approve the Business Combination Agreement and
the Transactions. On December 19, 2023, the parties consummated the Business Combination.
Holders of 1,493,265 shares of SportsMap common stock, par value $0.0001
per share (“SportsMap Common Stock”) sold in its initial public offering (the “Initial Shares”) properly exercised
their right to have such shares redeemed for a full pro rata portion of the trust account holding the proceeds from SMAP’s initial
public offering, calculated as of two business days prior to the consummation of the Business Combination, which was approximately $11.00
per share, or approximately $16.4 million in the aggregate.
As a result of the Business Combination, (i) each share of issued
and outstanding Legacy ICI common stock, other than dissenting shares and shares held immediately prior to the Effective Time by Legacy
ICI as treasury stock, converted into the right to receive 10.2776 shares of SportsMap Common Stock, based on the Exchange Ratio described
in the Proxy Statement (the “Exchange Ratio”), (ii) each option to purchase shares of Legacy ICI common stock outstanding
and unexercised immediately prior to the Effective Time, whether vested or unvested, other than any Out-of-the-Money Options (“Participating
Company Options”) converted into an option to purchase shares of SportsMap Common Stock upon substantially the same terms and conditions
(taking into account any accelerated vesting provided for in Legacy ICI’s existing equity plan or any related award agreement by
reason of the Business Combination Agreement or the Business Combination) as were in effect with respect to such option prior to the Effective
Time, except that such option represented the right to receive a number of shares of SportsMap Common Stock equal to the number of shares
of Legacy ICI common stock subject to such option prior to the Effective Time multiplied by the Exchange Ratio, and the exercise price
per share equal to the exercise price per share of such option prior to the Effective Time multiplied by the Exchange Ratio, and (iii) each
restricted stock unit award covering shares of Legacy ICI common stock outstanding immediately prior to the Effective Time, whether vested
or unvested (“Participating Company RSU Awards”), converted into a restricted stock unit (“RSU”) award covering
a number of shares of SportsMap Common Stock upon substantially the same terms and conditions as were in effect with respect to such award
prior to the Effective Time, except that such award represented the right to receive a number of shares of SportsMap Common Stock equal
to the number of shares of Legacy ICI common stock subject to such award prior to the Effective Time multiplied by the Exchange Ratio.
Immediately prior to the Closing, the Company consummated the issuance
and sale of convertible promissory notes (the “Financing Notes”) and warrants (the “Financing Warrants”) to certain
investors pursuant to a subscription agreement dated December 1, 2023 between the Company and those investors (the “Subscription
Agreement” and such transaction, the “Financing”). A summary of the material terms of the Financing, the Subscription
Agreement, the Financing Notes and the Financing Warrants is included in the Company’s Current Report on Form 8-K filed on December
1, 2023, as amended by the Company’s Current Report on Form 8-K/A filed on December 7, 2023.
After giving effect to the Transactions, the redemption of Initial
Shares as described above, and the consummation of the Financing, there are currently 11,956,823 shares of the Company’s common
stock issued and outstanding. Of those shares, 7,584,144 were issued to holders of Legacy ICI common stock in respect of such shares of
Legacy ICI common stock, representing approximately 63.4% of the Company’s voting power at the Closing.
The Company’s common stock and warrants commenced trading on
the Nasdaq Global Market (“Nasdaq”) under the symbols “MSAI” and “MSAIW,” respectively, on December
20, 2023. As previously disclosed, the Company’s Nasdaq listing application was not approved prior to the Closing. On December 20, 2023, the
Company received a written notice (the ’Nasdaq Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market
LLC indicating that the Staff has determined that the Company has not complied with all of the requirements of Nasdaq Rule IM-5101-2 since
it has not demonstrated compliance with the requirement to have a minimum of 1.1 million ’unrestricted publicly held shares”
and a minimum of 400 ’round lot holders,” as required by the Nasdaq Listing Rule 5405(a) for initial listing on Nasdaq. The
Company intends to appeal the Staff determination to a hearings panel pursuant to the procedures set forth in the Nasdaq rules by demonstrating
that it satisfies all of the requirements for initial listing on Nasdaq and pursue approval of its initial listing application as promptly
as possible.
FORM 10 INFORMATION
Item 2.01(f) of Form 8-K provides that if the predecessor registrant
was a “shell company” (as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), as SMAP was immediately before the Business Combination, then the registrant must disclose the information that would be
required if the registrant were filing a general form for registration of securities on Form 10. As a result of the consummation of the
Business Combination, and as discussed below in Item 5.06 of this Report, the Company has ceased to be a shell company. Accordingly, the
Company is providing the information below that would be included in a Form 10 if it were to file a Form 10. Please note that the information
provided below relates to the combined company after the consummation of the Business Combination, unless otherwise specifically indicated
or the context otherwise requires.
Cautionary Note Regarding Forward-Looking Statements
This Report includes statements that express ICI’s expectations,
hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intends,”
“may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,”
“should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking. These forward-looking statements include all matters that are not historical
facts. They appear in a number of places throughout this Report (including in information that is incorporated by reference into this
Report) and include statements regarding our intentions, beliefs or current expectations concerning, among other things, the Transactions
and the benefits of the Transactions, including results of operations, financial condition, liquidity, prospects, growth, strategies and
the markets in which ICI operates. Such forward-looking statements are based on information available as of the date of this Report, and
current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties.
As a result of a number of known and unknown risks and uncertainties,
the actual results or performance of ICI may be materially different from those expressed or implied by these forward-looking statements.
Some factors that could cause actual results to differ include:
| • | the inability to maintain the listing of the ICI’s common
stock on Nasdaq following the Business Combination; |
| • | our ability to recognize the anticipated benefits of the Business
Combination, which may be affected by, among other things, competition and the ability of ICI to grow and manage growth profitably following
the Business Combination; |
| • | changes in applicable laws or regulations; |
| • | the ability of ICI to implement business plans, forecasts,
and other expectations after the completion of the proposed transaction, and identify and realize additional opportunities; |
| • | the risk of downturns and the possibility of rapid change
in the highly competitive industry in which ICI operates; |
| • | the risk that ICI and its current and future collaborators
are unable to successfully develop and commercialize ICI’s products or services, or experience significant delays in doing so; |
| • | the risk that ICI may never achieve sustained profitability; |
| • | the risk that ICI will need to raise additional capital to
execute its business plan, which may not be available on acceptable terms or at all; |
| • | the risk that ICI experiences difficulties in managing its
growth and expanding operations; |
| • | the risk that third-party suppliers and manufacturers are
not able to fully and timely meet their obligations; |
| • | the risk that ICI is unable to secure or protect its intellectual
property; |
| • | the possibility that ICI may be adversely affected by other
economic, business, and/or competitive factors; and |
| • | other factors detailed under the section titled “Risk
Factors” beginning on page 9 of Amendment No. 2 to the registration statement on Form S-1 filed by SportsMap on December 19,
2023 (the “Registration Statement”) and incorporated herein by reference. |
The foregoing list of factors is not exhaustive. You should carefully
consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the
other documents filed by ICI from time to time with the SEC. The forward-looking statements contained in this Report and in any document
incorporated by reference are based on current expectations and beliefs concerning future developments and their potential effects on
ICI. There can be no assurance that future developments affecting ICI will be those that ICI has anticipated. ICI undertakes no obligation
to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may
be required under applicable securities laws.
Business
ICI’s business is described in the Registration Statement in
the section titled “Information About ICI” beginning on page 87, which is incorporated herein by reference.
Risk Factors
The risks associated with ICI’s business are described in the
Registration Statement in the section titled “Risk Factors” beginning on page 9 and are incorporated herein by reference.
A summary of the risks associated with ICI’s business is also included on pages 4-5 of the Registration Statement in the section
titled “Summary of the Prospectus—Risk Factors and Risk Factor Summary” and is incorporated herein by reference.
Financial Information
The (i) audited consolidated financial statements of ICI as of December
31, 2022 and 2021 and for the years ended December 31, 2022 and 2021 and (ii) unaudited condensed consolidated financial statements of
ICI as of September 30, 2023 and for the periods ended September 30, 2023 and 2022 are included in the Registration Statement beginning
on page F-3 of the Registration Statement and are incorporated herein by reference.
The unaudited pro forma condensed combined financial information of
SMAP and ICI as of and for the nine months ended September 30, 2023 and for the year ended December 31, 2022 is set forth in the section
of the Registration Statement titled “Unaudited Pro Forma Combined Financial Information” beginning on page 48 and
is incorporated herein by reference.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations
Management’s discussion and analysis of the financial
condition and results of operation of ICI for the periods ended September 30, 2023 and 2022 and the years ended December 31, 2022
and 2021 are set forth in the section of the Registration Statement titled “ICI Management’s Discussion and Analysis
of Financial Condition and Results of Operations” beginning on page 71 and is incorporated herein by reference.
Properties
ICI’s material facilities are described in the Registration Statement
in the section titled “Information About ICI—Facilities” on page 99 and is incorporated herein by reference.
Security Ownership of Certain Beneficial Owners and Management
The following table sets forth the beneficial ownership of the Company’s
common stock following the consummation of the Business Combination:
| • | each person who is known to be the beneficial owner of more
than 5% of shares of the Company’s common stock; |
| • | each of ICI’s current named executive officers and directors;
and |
| • | all current executive officers and directors of ICI as a group. |
Beneficial ownership is calculated based on 11,956,823 shares of the
Company’s common stock outstanding as of the Closing and determined according to the rules of the SEC, which generally provide that
a person has beneficial ownership of a security if he, she or it possesses sole or shared voting or investment power over that security,
including options and warrants that are currently exercisable or exercisable within 60 days.
Unless otherwise indicated, ICI believes that all persons named in
the table below have sole voting and investment power with respect to the voting securities beneficially owned by them.
Name and Address of Beneficial Owner(1) | |
Number of Shares | | |
% of Ownership | |
5% Holders | |
| | | |
| | |
Gary Strahan(2) | |
| 6,115,939 | | |
| 51.2 | % |
Steve Winch(3) | |
| 1,156,081 | | |
| 9.2 | % |
Peter Baird(4) | |
| 834,625 | | |
| 6.5 | % |
Jeff Guida(5) | |
| 785,828 | | |
| 6.2 | % |
David Gow(6) | |
| 996,955 | | |
| 8.1 | % |
Directors and Named Executive Officers | |
| | | |
| | |
Gary Strahan(2) | |
| 6,115,939 | | |
| 51.2 | % |
Steven Winch(3) | |
| 1,156,081 | | |
| 9.2 | % |
Peter Baird(4) | |
| 834,625 | | |
| 6.5 | % |
David Gow(6) | |
| 996,955 | | |
| 8.1 | % |
Reid Ryan | |
| 103,796 | | |
| * | |
Stuart V. Flavin III | |
| - | | |
| - | |
Petros Kitsos | |
| - | | |
| - | |
Margaret Chu | |
| - | | |
| - | |
All directors and executive officers as a group (9 individuals) | |
| 9,224,416 | | |
| 65.0 | % |
* Less than 1%.
(1) |
Unless otherwise noted, the business address of each of the following entities or individuals is 2105 West Cardinal Drive, Beaumont, Texas 77705. |
|
|
(2) |
Includes 100,000 shares of common stock held by the Jill A. Blashek Revocable Trust U/A May 8, 2004, as amended and restated, of which Jill A. Blashek, the wife of Gary Strahan, is trustee. |
|
|
(3) |
Consists of (i) 5,595 shares of common stock held by Mr. Winch, (ii) 547,210 shares of common stock held of record by Villard Capital, LLC, an estate-planning vehicle for Mr. Winch controlled by Mr. Winch and (iii) 603,276 shares of common stock issuable upon the settlement of Participating Company RSU Awards vesting within 60 days of the date of this Report. Does not include 635,649 New ICI Transaction RSU Awards expected to be granted to Mr. Winch following the Closing. |
|
|
(4) |
Consists of (i) 5,608 shares of common stock held by Mr. Baird, (ii) 204,493 shares of common stock issuable upon the exercise of Participating Company Options exercisable within 60 days of the date of this Report and (iii) 624,524 shares of common stock issuable upon the settlement of Participating Company RSU Awards vesting within 60 days of the date of this Report. Does not include 373,630 New ICI Transaction RSU Awards expected to be granted to Mr. Baird following the Closing. |
|
|
(5) |
Consists of (i) 127,463 shares of common stock issuable upon the exercise of Participating Company Options exercisable within 60 days of the date of this Report and (ii) 658,365 shares of common stock issuable upon the settlement of Participating Company RSU Awards vesting within 60 days of the date of this Report. Does not include 373,630 New ICI Transaction RSU Awards expected to be granted to Mr. Guida following the Closing. Mr. Guida is the Chief Innovation Officer of the Company. |
|
|
(6) |
Consists of (i) 472,346 shares of common stock held by Mr. Gow, (ii) 100,000 shares of common stock held by SportsMap, LLC, (iii) 19,609 shares of common stock held by Gow Media, LLC and (iv) 405,000 shares of common stock underlying private placement warrants that will be exercisable within 60 days of this Report. The business address for SportsMap, LLC, Gow Media, LLC and Mr. Gow is 5353 West Alabama, Suite 415 Houston, Texas 77056. Mr. Gow has voting and dispositive power over the shares held directly by, as well as shares underlying the private placement warrants held of record by, SportsMap, LLC and Gow Media, LLC. Mr. Gow disclaims any beneficial ownership of the securities held by SportsMap, LLC and Gow Media, LLC, except to the extent of his pecuniary interest therein. |
Directors and Executive Officers
Upon the consummation of the transactions contemplated by the Business
Combination Agreement and documents related thereto, and in accordance with the terms of the Business Combination Agreement, each executive
officer of SMAP ceased serving in such capacities, and each of Lawson Gow, David Graff, Oliver Luck and Steve Webster ceased serving on
SMAP’s board of directors.
David Gow, Reid Ryan, Gary Strahan, Steve Winch, Stuart V Flavin III,
Petros Kitsos, and Margaret Chu were elected as directors of the Company by the holders of SportsMap Common Stock at the Special Meeting,
effective immediately upon the Closing, in each case, until their respective successor is duly elected and qualified, or until their earlier
resignation, removal or death.
Ms. Chu, Mr. Kitsos, and Mr. Flavin were appointed to serve on the
audit committee of ICI’s Board, and each qualifies as an audit committee financial expert, as such term is defined in Item 407(d)(5)
of Regulation S-K.
Mr. Ryan, Ms. Chu and Mr. Kitsos were appointed to serve on the compensation
committee of ICI’s Board.
Messrs. Flavin, Kitsos and Ryan were appointed to serve on the nominating
and corporate governance committee of ICI’s Board.
Gary Strahan was appointed as ICI’s Chief Executive Officer,
Steve Winch was appointed as ICI’s President, Peter Baird was appointed as ICI’s Chief Financial Officer, and Steve Guidry
was appointed as ICI’s General Counsel.
ICI’s directors and executive officers after the consummation
of the Business Combination are described in the Registration Statement in the section titled “Management of New ICI After the
Business Combination” beginning on page 122 and that information is incorporated herein by reference.
Executive Compensation
The executive compensation of ICI’s executive officers is described
in the Registration Statement in the section titled “Executive and Director Compensation” beginning on page 128 and
that information is incorporated herein by reference.
Certain Relationships and Related Transactions
Certain relationships and related party transactions of ICI are described
in the Registration Statement in the section titled “Certain Relationships and Related Party Transactions” beginning
on page 132 and are incorporated herein by reference.
Director Independence
Information regarding director independence is described in the Registration
Statement in the section titled “Management of New ICI After the Business Combination—Independence of our Board of Directors”
beginning on page 125 and is incorporated herein by reference.
Legal Proceedings
Reference is made to the disclosure regarding legal proceedings in
the section of the Registration Statement titled “Information about ICI—Legal Proceedings” beginning on page
99, which is incorporated herein by reference.
Market Price of and Dividends on the Registrant’s Common
Equity and Related Stockholder Matters
Shares of the Company’s common stock and warrants commenced
trading on the Nasdaq under the symbols “MSAI” and “MSAIW,” respectively, on December 20, 2023, in lieu of
SportsMap Common Stock, warrants and units of SMAP. It is the present intention of the Board to retain all earnings, if any, for use in
ICI’s business operations and, accordingly, the Board does not anticipate declaring any dividends in the foreseeable future. The
payment of cash dividends in the future will be dependent upon ICI’s revenues and earnings, if any, capital requirements and general
financial condition. The payment of any cash dividends is within the discretion of the Board. Further, the ability of ICI to declare dividends
may be limited by the terms of financing or other agreements, including the Financing Notes, and other agreements entered into by it or
its subsidiaries from time to time.
Information regarding SportsMap Common Stock, warrants and units and
related stockholder matters are described in the Proxy Statement in the section titled “Market Prices and Dividends”
on page 37 and such information is incorporated herein by reference.
Recent Sales of Unregistered Securities
Reference is made to the disclosure set forth below under Item 3.02
of this Report concerning the issuance and sale by ICI of certain unregistered securities in connection with the Business Combination
and the Financing, which is incorporated herein by reference.
Information regarding Rule 144 under the Securities Act of 1933, as
amended (the “Securities Act”), and its use by former shell companies is set forth in the Registration Statement in the section
titled “Securities Act Restrictions on Resale of Securities” on page 108 and is incorporated herein by reference.
Description of Registrant’s Securities
The description of ICI’s securities is contained in the Registration
Statement in the section titled “Description of New ICI Securities” beginning on page 100 and is incorporated herein
by reference. As described below, ICI’s Second Amended and Restated Certificate of Incorporation was approved by SMAP’s stockholders
at the Special Meeting and became effective as of the Closing.
Indemnification of Directors and Officers
The indemnification of ICI’s directors and officers is set forth
in the Registration Statement in the section titled “Description of New ICI Securities—Limitations on Liability and Indemnification
of Officers and Directors” on page 104 and is incorporated herein by reference.
Item 3.02. Unregistered Sales of Equity Securities.
At the Closing, ICI consummated the Business Combination and the Financing.
SMAP issued 7,584,144 shares of SportsMap Common Stock as consideration pursuant to the Business Combination Agreement, 681,000 shares
of SportsMap Common Stock to certain service providers as compensation for services provided, an aggregate of $6.805 million of Financing
Notes, and Financing Warrants to purchase 340,250 shares of the Company’s common stock. The initial aggregate maximum number of
shares of the Company’s common stock issuable upon conversion of the Financing Notes and exercise of the Financing Warrants and
payable as interest on the Financing Notes is 3,266,400, subject to customary anti-dilution adjustments.
All of the securities referenced in the foregoing paragraph were issued
and sold in reliance on Section 4(a)(2) of the Securities Act. All such securities may not be re-offered or sold in the United States
absent an effective registration statement or an exemption from the registration requirements under applicable federal and state securities
laws.
Item 3.03. Material Modification to Rights of Security Holders.
The information set forth in Item 5.03 of
this Report is incorporated herein by reference.
Item 4.01. Changes in Registrant’s Certifying Accountant.
For accounting purposes, the Transactions are treated as a reverse
acquisition and, as such, the historical financial statements of the accounting acquirer, ICI, will become the historical financial statements
of the Company. In a reverse acquisition, a change of accountants is presumed to have occurred unless the same accountant audited the
pre-transaction financial statements of both the legal acquirer and the accounting acquirer, and such change is generally presumed to
occur on the date the reverse acquisition is completed.
(a) Dismissal of independent registered public accounting firm.
On December 19, 2023, the Audit Committee of the Board dismissed Marcum
LLP (“Marcum”), SMAP’s independent registered public accounting firm prior to the business combination, as the Company’s
independent registered public accounting firm effective upon consummation of the Closing.
The report of Marcum on SMAP’s, the Company’s legal predecessor,
balance sheet as of December 31, 2022 and 2021 and the statements of operations, changes in stockholders’ equity and cash flows
for the year ended December 31, 2022 and for the period from May 14, 2021 (inception) through December 31, 2021, did not contain an adverse
opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainties, audit scope or accounting principles, except
that such report contained an explanatory paragraph regarding SMAP’s ability to continue as a going concern.
During the period from May 14, 2021 (inception) to December 31, 2022
and subsequent interim period through December 19, 2023, there were no disagreements between the Company and Marcum on any matter of accounting
principles or practices, financial disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction
of Marcum, would have caused it to make reference to the subject matter of the disagreements in its reports on SMAP’s financial
statements for such period.
During the period from May 14, 2021 (inception) to December 31, 2022
and subsequent interim period through December 19, 2023, there were no “reportable events” (as defined in Item 304(a)(1)(v)
of Regulation S-K under the Exchange Act).
The Company has provided Marcum with a copy of the foregoing disclosures
and has requested that Marcum furnish the Company with a letter addressed to the SEC stating whether it agrees with the statements made
by the Company set forth above. A copy of Marcum’s letter, dated December 21, 2023, is filed as Exhibit 16.1 to this Report.
Item 5.01. Changes in Control of Registrant.
The information set forth above under Item 1.01 and Item 2.01 of this
Report is incorporated herein by reference.
Item 5.02. Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
The information set forth in the sections
titled “Directors and Executive Officers”, “Executive Compensation”, and “Certain Relationships
and Related Transactions” in Item 2.01 of this Report is incorporated herein by reference.
Employment Agreements
Effective upon the consummation of the Business
Combination, the Company entered into an amended and restated employment agreement with Gary Strahan, its Chief Executive Officer, Steve
Winch, its President, and Peter Baird, its Chief Financial Officer. The material terms of these employment agreements are described below.
Gary Strahan. Pursuant to his amended
employment agreement, Mr. Strahan is entitled to receive a base salary of $240,000 per year and he is eligible to receive
an annual bonus payment in the discretion of the Board.
Steve Winch. Pursuant to his amended
employment agreement, Mr. Winch is entitled to receive a base salary of $350,000 per year. Under the terms of the agreement, he received
a grant of RSUs from Legacy ICI prior to the Closing, and is entitled to receive a grant of 635,649 RSUs from ICI following the Closing.
Peter Baird. Pursuant to his amended
employment agreement, Mr. Baird is entitled to receive a base salary of $240,000 per year and is eligible to receive an annual bonus payment
in the discretion of the Board. Under the terms of the agreement, he received a grant of RSUs from Legacy ICI prior to the Closing, and
is entitled to receive a grant of 373,630 RSUs from ICI following the Closing.
General. Each of the agreements has
a one-year term and automatically renews for successive one-year terms unless a notice of non-renewal is provided at least 60 days prior
to the end of the then-current term. If Mr. Strahan is removed or chooses to step down from his position as Chief Executive Officer, he
will continue to be employed by the Company as an advisor and to receive payment of his base salary for the remainder of the then-current
term. The Company can terminate the employment of each of Messrs. Winch and Baird without “cause” (as defined in each agreement)
by providing ninety days’ notice or pay in lieu of notice. Each agreement also includes perpetual confidentiality and non-disparagement
covenants and non-competition, non-solicitation covenants that apply during employment with the Company and for twelve months following
termination of employment.
The foregoing description of the employment
agreements does not purport to be complete and is qualified in its entirety by the terms and conditions of the employment agreements and
the applicable forms of award agreements governing the RSU grants, which are included as Exhibits 10.8, 10.9, 10.10, 10.11 and 10.15 to
this Report, respectively, and are incorporated herein by reference.
2020 Equity Incentive Plan
In connection with the consummation of the
Business Combination, the Company assumed the Amended and Restated 2020 Equity Incentive Plan of Infrared Cameras Holdings, Inc. (the
“Prior Plan”) from Legacy ICI and, thereafter, terminated the Prior Plan. Any outstanding awards granted under the Prior Plan
will remain outstanding, subject to the terms of the applicable Prior Plan and applicable award agreement.
The information set forth in the section entitled
“Executive Compensation—Executive and Director Compensation of Infrared Cameras—Equity Incentive Plan—2020 Equity
Incentive Plan” beginning on page 216 of the Proxy Statement is incorporated herein by reference. The foregoing description of the
Prior Plan and the information incorporated by reference in the preceding sentence does not purport to be complete and is qualified in
its entirety by the terms and conditions of the Prior Plan. The Prior Plan is included as Exhibit 10.12 to this Report and is incorporated
herein by reference. The form of stock option award agreement under the Prior Plan is included as Exhibit 10.13 to this Report and is
incorporated herein by reference.
2023 Equity Incentive Plan
In connection with the consummation of the
Business Combination, the Company adopted the Infrared Cameras Holdings, Inc. 2023 Incentive Award Plan (the “Incentive Award Plan”)
under which the Company may grant cash and equity incentive awards to its eligible service providers in order to attract, motivate, and
retain the talent for which the Company competes. At the Special Meeting, the SMAP stockholders considered and approved the Incentive
Award Plan. The Incentive Award Plan became effective immediately upon the Closing.
Employees, consultants, and directors of the
Company, and employees and consultants of its subsidiaries, generally are eligible to receive awards under the Incentive Award Plan. The
Incentive Award Plan is administered by the Company’s board of directors, which may delegate its duties and responsibilities to
one or more committees of the Company’s directors and/or officers (referred to collectively as the “plan administrator”),
subject to the limitations imposed under the Incentive Award Plan and applicable laws. The plan administrator has the authority to take
all actions and make all determinations under Incentive Award Plan, to interpret the Incentive Award Plan and award agreements, and to
adopt, amend, and repeal rules for the administration of the Incentive Award Plan as it deems advisable. The plan administrator also has
the authority to determine which eligible participants receive awards, grant awards, and set the terms and conditions of all awards under
the Incentive Award Plan, including any vesting and vesting acceleration provisions, subject to the conditions and limitations in the
Incentive Award Plan.
The initial aggregate number of shares of
the Company’s common stock available for issuance under the Incentive Award Plan is equal to (a) 3,015,287 shares of common stock
and (b) any shares which, as of the effective date of the Incentive Award Plan, are subject to an award outstanding under the Prior Plan
(each, a “Prior Plan Award”), and which, on or following the effective date of the Incentive Award Plan, become available
for issuance under the Incentive Award Plan as provided in the Incentive Award Plan. The maximum number of shares that may be issued pursuant
to the exercise of incentive stock options granted under the Incentive Award Plan is 3,015,287. The foregoing share limits under the Incentive
Award Plan are, in each case, subject to certain adjustments set forth therein.
A summary of the other material terms of the
Incentive Award Plan is set forth in the Proxy Statement in the section titled “Proposal No. 6 —The Equity Incentive Plan
Proposal” beginning on page 155 of the Proxy Statement, which is incorporated herein by reference. Such summary and the foregoing
description are qualified in their entirety by reference to the full text of the Incentive Award Plan and applicable forms of award agreements,
copies of which are attached hereto as Exhibit 10.14, 10.15, 10.16 and 10.17, respectively, and incorporated herein by reference.
Item 5.03. Amendments to Articles of Incorporation or Bylaws;
Change in Fiscal Year.
At the Special Meeting, the SMAP stockholders considered and approved,
among other things, the proposals set forth in the Proxy Statement in the sections titled “Proposal No. 2—The Charter Proposal”
and “Proposal No.3—The Advisory Governance Proposals” beginning on pages 144 and 149, respectively, of the Proxy
Statement.
The Second Amended and Restated Certificate of Incorporation of ICI
(the “Certificate of Incorporation”), which became effective upon filing with the Secretary of State of the State of Delaware
on December 19, 2023, includes the amendments proposed by the Charter Proposal.
On December 19, 2023, the Board approved and adopted the Amended and
Restated Bylaws of ICI (the “Bylaws”), which became effective immediately prior to the completion of the Business Combination.
Copies of the Certificate of Incorporation and the Bylaws are attached
hereto as Exhibit 3.1 and Exhibit 3.2, respectively, and are incorporated herein by reference.
The description of the Certificate of Incorporation and the general
effect of the Certificate of Incorporation and the Bylaws upon the rights of holders of ICI’s capital stock are included in the
Registration Statement in the section titled “Description of New ICI Securities”, which is incorporated herein by reference.
Item 5.06. Change in Shell Company Status.
As a result of the Business Combination, the Company ceased being a
shell company. Reference is made to the disclosure in the Proxy Statement in the section titled “Proposal No. 1—The Business
Combination Proposal” beginning on page 103, which is incorporated herein by reference. Further, the information set forth in
the Introductory Note and under Item 2.01 of this Report is incorporated herein by reference.
Item 8.01. Other Events.
As a result of the Business Combination, ICI became the successor issuer
to SMAP. Pursuant to Rule 12g-3(a) under the Exchange Act, the Company’s common stock and warrants are deemed registered under Section
12(b) of the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(a) Financial statements of businesses acquired.
The (i) audited consolidated financial statements of ICI as of and
for the years ended December 31, 2022 and 2021 and (ii) unaudited condensed consolidated financial statements of ICI as of September 30,
2023 and for the periods ended September 30, 2023 and 2022 are included in the Registration Statement beginning on page F-3 and incorporated
herein by reference.
(b) Pro forma financial information.
The unaudited pro forma condensed combined financial information of
SMAP and ICI as of and for the nine months ended September 30, 2023 and for the year ended December 31, 2022 are set forth in the section
of the Registration Statement titled “Unaudited Pro Forma Combined Financial Information” beginning on page 48 and
is incorporated herein by reference.
(d) Exhibits.
Exhibit
No. |
|
Description |
2.1† |
|
Business Combination Agreement, dated as of December 5, 2022, by and among Infrared Cameras Holdings, Inc., ICH Merger Sub Inc. and SportsMap Tech Acquisition Corp. (incorporated by reference to Exhibit 2.1 of the Registrant’s Current Report on Form 8-K, filed with the SEC on December 6, 2022). |
2.1(a) |
|
Amendment No. 1 to Business Combination Agreement, dated June 27, 2023, by and among SportsMap Tech Acquisition Corp, Infrared Cameras Holdings, Inc. and ICH Merger Sub Inc. (incorporated by reference to Exhibit 2.2 of the Registrant’s Current Report on Form 8-K, filed with the SEC on June 28, 2023). |
2.1(b) |
|
Amendment No. 2 to Business Combination Agreement, dated September 17, 2023, by and among SportsMap Tech Acquisition Corp, Infrared Cameras Holdings, Inc. and ICH Merger Sub Inc. (incorporated by reference to Exhibit 2.2 of the Registrant’s Current Report on Form 8-K, filed with the SEC on September 19, 2023). |
3.1 |
|
Second Amended and Restated Certificate of Incorporation of Infrared Cameras Holdings, Inc. |
3.2 |
|
Amended and Restated Bylaws of Infrared Cameras Holdings, Inc. |
4.1 |
|
Warrant Agreement, dated as of October 18, 2021, by and between the Registrant and Continental Stock Transfer & Trust Company, as warrant agent (incorporated by reference to Exhibit 4.1 of the Registrant’s Current Report on Form 8-K, filed on October 21, 2021). |
10.1 |
|
Subscription Agreement, dated December 1, 2023, by and between the Registrant and the parties thereto (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K filed on December 1, 2023). |
10.2 |
|
Form of Financing Note (incorporated by reference to Exhibit 10.2 of the Registrant’s Current Report on Form 8-K filed on December 1, 2023). |
10.3 |
|
Form of Financing Warrant (incorporated by reference to Exhibit 10.3 of the Registrant’s Current Report on Form 8-K filed on December 1, 2023). |
10.4 |
|
Form of Loan Agreement (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed on November 16, 2023). |
10.5 |
|
Share Transfer Agreement (incorporated by reference to Exhibit 10.2 of the Registrant’s Current Report on Form 8-K filed on May 23, 2023). |
10.6 |
|
Amended and Restated Registration Rights Agreement, dated as of December 19, 2023, by and among Infrared Cameras Holdings, Inc. and the holders party thereto. |
10.7† |
|
Form of Lock-Up Agreement. |
10.8+† |
|
Amended and Restated Employment Agreement among Infrared Cameras Holdings, Inc., Infrared Cameras, Inc., and Gary Strahan. |
10.9+† |
|
Amended and Restated Employment Agreement among Infrared Cameras Holdings, Inc., Infrared Cameras, Inc., and Steven Winch. |
10.10+† |
|
Amended and Restated Employment Agreement among Infrared Cameras Holdings, Inc., Infrared Cameras, Inc., and Peter Baird. |
10.11+ |
|
Form of Restricted Stock Unit Grant Notice and Award Agreement (Deferred RSUs Non-Plan Award). |
10.12+ |
|
Amended and Restated 2020 Equity Incentive Plan of Infrared Cameras Holdings, Inc. |
10.13+ |
|
Form of Stock Option Agreement (2020 Equity Incentive Plan). |
10.14+ |
|
Infrared Cameras Holdings, Inc. 2023 Incentive Award Plan. |
10.15+ |
|
Form of Restricted Stock Unit Grant Notice and Award Agreement (Deferred RSUs 2023 Incentive Award Plan). |
10.16+ |
|
Form of Stock Option Grant Notice and Agreement (2023 Incentive Award Plan). |
10.17+ |
|
Form of Restricted Stock Unit Grant Notice and Agreement (2023 Incentive Award Plan). |
16.1 |
|
Letter from Marcum LLP to the Securities and Exchange Commission. |
21.1 |
|
List of Subsidiaries. |
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
| † | The annexes, schedules, and certain exhibits to this Exhibit
have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Registrant hereby agrees to furnish supplementally a copy of any
omitted annex, schedule or exhibit to the SEC upon request. |
| + | Indicates a management contract or compensatory plan. |
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
Infrared Cameras Holdings, Inc. |
|
|
|
Date: December 21, 2023 |
By: |
/s/ Peter Baird |
|
Name: |
Peter Baird |
|
Title: |
Chief Financial Officer |
Exhibit 3.1
SECOND
AMENDED AND RESTATED
CERTIFICATE
OF INCORPORATION
OF
SPORTSMAP
TECH ACQUISITION CORP.
SportsMap Tech Acquisition
Corp. (the “Corporation”), a corporation organized and existing under the General Corporation Law of the State of Delaware
(the “DGCL”), does hereby certify as follows:
1.
The name of the Corporation is SportsMap Tech Acquisition Corp. The Corporation was incorporated under the name SportsMap Tech
Acquisition Corp. by the filing of its original Certificate of Incorporation with the Secretary of State of the State of Delaware on May
14, 2021 (the “Original Certificate”).
2.
An Amended and Restated Certificate of Incorporation, which amended and restated the Original Certificate in its entirety, was
filed with the Secretary of State of the State of Delaware on October 15, 2021(as amended from time to time, the “Existing Certificate”).
3.
This Second Amended and Restated Certificate of Incorporation (the “Second Amended and Restated Certificate”),
which amends and restates the Existing Certificate in its entirety, has been approved by the Board of Directors of the Corporation (the
“Board of Directors”) in accordance with Sections 242 and 245 of the DGCL and has been adopted by the stockholders
of the Corporation at a meeting of the stockholders of the Corporation in accordance with the provisions of Section 211 of the DGCL.
4.
The text of the Existing Certificate is hereby amended and restated by this Second Amended and Restated Certificate to read in
its entirety as set forth in EXHIBIT A attached hereto.
5.
This Second Amended and Restated Certificate shall become effective on the date of filing with the Secretary of State of the State
of Delaware.
6.
IN WITNESS WHEREOF, SportsMap Tech Acquisition Corp. has caused this Second Amended and Restated Certificate to be signed by a
duly authorized officer of the Corporation, on December 19, 2023.
|
SPORTSMAP
TECH ACQUISITION CORP. |
|
|
|
By: |
/s/ Gary Strahan |
|
Name: |
Gary Strahan |
|
Title: |
Chief Executive Officer |
EXHIBIT
A
ARTICLE
I
NAME
The name of the corporation
is Infrared Cameras Holdings, Inc. (the “Corporation”).
ARTICLE
II
REGISTERED OFFICE AND AGENT
The address of the Corporation’s
registered office in the State of Delaware is 1209 Orange Street, in the City of Wilmington, County of New Castle, 19801, and the name
of its registered agent at such address is The Corporation Trust Company.
ARTICLE
III
PURPOSE
The purpose of the Corporation
is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware
(the “DGCL”) as it now exists or may hereafter be amended and supplemented.
ARTICLE
IV
CAPITAL STOCK
The Corporation is authorized
to issue two classes of stock to be designated, respectively, “Common Stock” and “Preferred Stock.”
The total number of shares of capital stock which the Corporation shall have authority to issue is 310,000,000. The total number of shares
of Common Stock that the Corporation is authorized to issue is 300,000,000, having a par value of $0.0001 per share, and the total number
of shares of Preferred Stock that the Corporation is authorized to issue is 10,000,000, having a par value of $0.0001 per share.
The Corporation has the authority
to create and issue rights, warrants and options entitling the holders thereof to acquire from the Corporation any shares of its capital
stock of any class or classes, with such rights, warrants and options to be evidenced by or in instrument(s) approved by the Board of
Directors of the Corporation (the “Board of Directors”). The Board of Directors is empowered to set the exercise price,
duration, times for exercise and other terms and conditions of such rights, warrants or options; provided, however, that the consideration
to be received for any shares of capital stock issuable upon exercise thereof may not be less than the par value thereof.
The designations and the powers,
privileges and rights, and the qualifications, limitations or restrictions thereof in respect of each class of capital stock of the Corporation
are as follows:
1.
General. The voting, dividend, liquidation, and other rights and powers of the Common Stock are subject to and qualified
by the rights, powers and preferences of any series of Preferred Stock as may be designated by the Board of Directors and outstanding
from time to time.
2.
Voting.
| a. | Except as otherwise provided herein (including any Certificate of Designation (as defined below)) or otherwise required
by law, the holders of the shares of Common Stock shall exclusively possess all voting power with respect to the Corporation. |
| b. | Except as otherwise provided herein or expressly required by law, each holder of Common Stock, as such,
shall be entitled to vote on each matter submitted to a vote of stockholders and shall be entitled to one (1) vote for each share of Common
Stock held of record by such holder as of the record date for determining stockholders entitled to vote on such matter. |
| c. | Except as otherwise provided herein (including any Certificate of Designation) or otherwise required by
law, at any annual or special meeting of the stockholders of the Corporation, holders of the Common Stock shall have the exclusive right
to vote for the election of directors and on all other matters properly submitted to a vote of the stockholders. |
| d. | Except as otherwise required by law, holders of Common Stock, as such, shall not be entitled to vote on
any amendment to this Second Amended and Restated Certificate (including any Certificate of Designation) that relates solely to the rights,
powers, preferences (or the qualifications, limitations or restrictions thereof) or other terms of one or more outstanding series of Preferred
Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series,
to vote thereon pursuant to this Second Amended and Restated Certificate (including any Certificate of Designation) or pursuant to the
DGCL. |
Subject to the rights of any
holders of any outstanding series of Preferred Stock, the number of authorized shares of Common Stock may be increased or decreased (but
not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the outstanding stock
of the Corporation entitled to vote thereon, irrespective of the provisions of Section 242(b)(2) of the DGCL.
3.
Dividends. Subject to applicable law and the rights and preferences of any holders of any outstanding series of Preferred
Stock, the holders of Common Stock, as such, shall be entitled to the payment of dividends on the Common Stock when, as and if declared
by the Board of Directors from time to time out of any assets or funds of the Corporation legally available therefor and shall share in
such dividends pro rata in proportion to the number of shares of Common Stock held by each such holder.
4.
Liquidation. Subject to the rights and preferences of any holders of any shares of any outstanding series of Preferred Stock,
in the event of any liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary, after payment or provision
for payment of the debts and other liabilities of the Corporation and after making provisions for preferential and other amounts, if any,
to which the holders of any outstanding series of Preferred Stock are entitled, the remaining funds and assets of the Corporation that
may be legally distributed to the Corporation’s stockholders shall be distributed among the holders of the then outstanding Common
Stock pro rata in proportion to the number of shares of Common Stock held by each such holder.
Shares of Preferred Stock
may be issued from time to time by the Board of Directors out of the unissued shares of Preferred Stock, in one or more series, each of
such series to have such terms as stated or expressed herein and in the resolution or resolutions providing for the creation and issuance
of such series adopted by the Board of Directors as hereinafter provided.
Authority is hereby expressly
granted to the Board of Directors from time to time to issue the Preferred Stock in one or more series, and in connection with the creation
of any such series, by adopting a resolution or resolutions providing for the issuance of the shares thereof and by filing a certificate
of designation relating thereto in accordance with the DGCL (a “Certificate of Designation”), to determine and fix
the number of shares of such series and to fix such voting powers, full or limited, or no voting powers, and such designations, preferences
and relative participating, optional or other special rights, and qualifications, limitations or restrictions thereof, including without
limitation thereof, dividend rights, dividend rates, conversion rights, exchange rights, redemption privileges and prices, liquidation
and dissolution preferences, and the rights in respect of any distribution of assets of any wholly unissued series of Preferred Stock,
and to increase or decrease (but not below the number of shares of such series then outstanding) the number of shares of any series as
shall be stated and expressed in such resolutions, all to the fullest extent now or hereafter permitted by the DGCL. Without limiting
the generality of the foregoing, the resolution or resolutions providing for the creation and issuance of any series of Preferred Stock
may provide that such series shall be superior or rank equally or be junior to any other series of Preferred Stock to the extent permitted
by law and this Second Amended and Restated Certificate (including any Certificate of Designation). Except as otherwise required by law,
holders of any series of Preferred Stock shall be entitled only to such voting rights, if any, as shall expressly be granted thereto by
this Second Amended and Restated Certificate (including any Certificate of Designation). There shall be no limitation or restriction on
any variation between any of the different series of Preferred Stock as to the designations, preferences and relative, participating,
optional or other special rights, and the qualifications, limitations or restrictions thereof, and the several series of Preferred Stock
may vary in any and all respects as fixed and determined by the resolution or resolutions of the Board of Directors or by a duly authorized
committee of the Board of Directors, providing for the issuance of the various series of Preferred Stock.
The number of authorized shares
of Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote
of the holders of a majority of the outstanding stock of the Corporation entitled to vote thereon, irrespective of the provisions of Section
242(b)(2) of the DGCL, unless a separate vote of any such holders is required pursuant to the terms of any Certificate of Designation.
ARTICLE
V
BOARD OF DIRECTORS
For the management of the
business and for the conduct of the affairs of the Corporation it is further provided that:
A. Except as otherwise expressly
provided by the DGCL or this Second Amended and Restated Certificate, the business and affairs of the Corporation shall be managed by
or under the direction of the Board of Directors. The number of directors which shall constitute the whole Board of Directors shall be
fixed exclusively by one or more resolutions adopted from time to time by the Board of Directors. Directors shall be elected by a plurality
of the votes cast by the stockholders present in person or represented by proxy at the meeting held for such purpose and entitled to vote
thereon.
B. Subject to the special
rights of the holders of one or more outstanding series of Preferred Stock to elect directors, the Board of Directors or any individual
director may be removed from office at any time, but only for cause and only by the affirmative vote of the holders of at least two-thirds
(66 and 2/3%) of the voting power of all of the then outstanding shares of voting stock of the Corporation entitled to vote at an election
of directors, at a meeting duly called for that purpose.
C. Subject to the
special rights of the holders of one or more outstanding series of Preferred Stock to elect directors, except as otherwise provided
by law, any vacancies on the Board of Directors resulting from death, resignation, disqualification, retirement, removal or other
causes and any newly created directorships resulting from any increase in the number of directors shall be filled exclusively by the
affirmative vote of a majority of the directors then in office, even though less than a quorum, or by a sole remaining director
(other than any directors elected by the separate vote of one or more outstanding series of Preferred Stock), and shall not be
filled by the stockholders. Any director appointed in accordance with the preceding sentence shall hold office until the expiration
of the term of the class to which such director shall have been appointed or until his or her earlier death, resignation,
retirement, disqualification, or removal.
D. Whenever the holders of
any one or more series of Preferred Stock issued by the Corporation shall have the right, voting separately as a series or separately
as a class with one or more such other series, to elect directors at an annual or special meeting of stockholders, the election, term
of office, removal and other features of such directorships shall be governed by the terms of this Second Amended and Restated Certificate
(including any Certificate of Designation). Notwithstanding anything to the contrary in this Article V, the number of directors
that may be elected by the holders of any such series of Preferred Stock shall be in addition to the number fixed pursuant to paragraph
A of this Article V, and the total number of directors constituting the whole Board of Directors shall be automatically adjusted
accordingly. Except as otherwise provided in the Certificate of Designation(s) in respect of one or more series of Preferred Stock, whenever
the holders of any series of Preferred Stock having such right to elect additional directors are divested of such right pursuant to the
provisions of such Certificate of Designation(s), the terms of office of all such additional directors elected by the holders of such
series of Preferred Stock, or elected to fill any vacancies resulting from the death, resignation, disqualification or removal of such
additional directors, shall forthwith terminate (in which case each such director thereupon shall cease to be qualified as, and shall
cease to be, a director) and the total authorized number of directors of the Corporation shall automatically be reduced accordingly.
E. The directors of the Corporation
need not be elected by written ballot unless the Bylaws so provide.
ARTICLE
VI
BYLAWS
In furtherance and not in
limitation of the powers conferred by statute, the Board of Directors is expressly authorized to adopt, amend or repeal the Amended and
Restated Bylaws of the Corporation (as amended and/or restated from time to time, the “Bylaws”). The Bylaws may also
be adopted, amended or repealed by the stockholders of the Corporation; provided, that, in addition to any vote of the holders
of any class or series of stock of the Corporation required by applicable law or by this Second Amended and Restated Certificate (including
any Certificate of Designation in respect of one or more series of Preferred Stock) or the Bylaws of the Corporation, the adoption, amendment
or repeal of the Bylaws of the Corporation by the stockholders of the Corporation shall require the affirmative vote of the holders of
at least two-thirds (66 and 2/3%) of the voting power of all of the then outstanding shares of voting stock of the Corporation entitled
to vote generally in an election of directors; and provided, further, that no Bylaws hereafter adopted by the stockholders
of the Corporation shall invalidate any prior act of the Board of Directors that would have been valid if such Bylaws had not been adopted.
ARTICLE
VII
STOCKHOLDERS
A. Subject to the
special rights of the holders of one or more series of Preferred Stock, special meetings of the stockholders of the Corporation may
be called, for any purpose or purposes, at any time only by or at the direction of the Board of Directors, the Chairperson of the
Board of Directors, the Chief Executive Officer or the President, if and for so long as the Corporation is a Controlled Company (as
defined in Section 5615(c)(1) of the Nasdaq Stock Market LLC Rules, Section 303A.00 of the New York Stock Exchange Listed Company
Manual or Section 801(a) of the NYSE American Company Guide, as applicable), by the Secretary of the Corporation at the request of
any holder of record of at least 25% of the voting power of the issued and outstanding shares of capital stock of the Corporation,
and shall not be called by any other person or persons. Subject to the special rights of the holders of one or more series of
Preferred Stock, from and after the date the Corporation ceases to qualify as a Controlled Company, special meetings of the
stockholders of the Corporation may not be called by the stockholders of the Corporation or any other person or entity.
B. Advance notice of stockholder
nominations for the election of directors and of other business proposed to be brought by stockholders before any meeting of the stockholders
of the Corporation shall be given in the manner provided in the Bylaws of the Corporation.
C. For so long as the Corporation
qualifies as a Controlled Company, any action required or permitted to be taken by the stockholders of the Corporation may be effected
by the consent in writing of the holders of outstanding capital stock of the Corporation having not less than the minimum number of votes
that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted.
From and after the date the Corporation ceases to qualify as a Controlled Company, any action required or permitted to be taken by the
stockholders of the Corporation must be effected at a duly called annual or special meeting of the stockholders of the Corporation (and
may not be taken by written consent of the stockholders in lieu of a meeting). In addition to the foregoing, any action required or permitted
to be taken by the holders of any series of Preferred Stock, voting separately as a series or separately as a class with one or more other
such series, may be taken without a meeting, without prior notice and without a vote, to the extent expressly so provided by the applicable
Certificate of Designation relating to such series of Preferred Stock, if a consent or consents in writing, setting forth the action so
taken, shall be signed by the holders of outstanding shares of the relevant series of Preferred Stock having not less than the minimum
number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were
present and voted and shall be delivered to the Corporation in accordance with the applicable provisions of the DGCL.
ARTICLE
VIII
LIABILITY
No director or officer of
the Corporation shall have any personal liability to the Corporation or its stockholders for monetary damages for any breach of fiduciary
duty as a director or officer, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL
as the same exists or hereafter may be amended. Any amendment, repeal or modification of this Article VIII, or the adoption of
any provision of the Second Amended and Restated Certificate inconsistent with this Article VIII, shall not adversely affect any
right or protection of a director or officer of the Corporation with respect to any act or omission occurring prior to such amendment,
repeal, modification or adoption. If the DGCL is amended after approval by the stockholders of this Article VIII to authorize corporate
action further eliminating or limiting the personal liability of directors, then the liability of a director or officer of the Corporation
shall be eliminated or limited to the fullest extent permitted by the DGCL as so amended.
ARTICLE
IX
INDEMNIFICATION
A.
To the fullest extent permitted by the DGCL or any other applicable law, as it presently exists or may hereafter be amended, the Corporation
shall indemnify and hold harmless each person who is or was made a party or is threatened to be made a party to or is otherwise involved
in any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “proceeding”)
by reason of the fact that he or she or a person for whom he or she is the legal representative is or was a director or officer of the
Corporation or, while serving as a director or officer of the Corporation, is or was serving at the request of the Corporation as a director,
officer, employee or agent of another corporation or of a partnership, joint venture, trust, other enterprise or nonprofit entity, including
service with respect to an employee benefit plan (an “indemnitee”), whether the basis of such proceeding is alleged
action in an official capacity as a director, officer, employee or agent, or in any other capacity while serving as a director, officer,
employee or agent, against all liability and loss suffered and expenses (including, attorneys’ fees, judgments, fines, ERISA excise
taxes and penalties and amounts paid in settlement) reasonably incurred by such indemnitee in connection with such proceeding; provided
that such indemnitee acted in good faith and in a manner such indemnitee reasonably believed to be in or not opposed to the best interests
of the Corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe such indemnitee’s
conduct was unlawful. The Corporation shall to the fullest extent not prohibited by applicable law pay the expenses (including attorneys’
fees) incurred by an indemnitee in defending or otherwise participating in any proceeding in advance of its final disposition; provided,
however, that, to the extent required by applicable law, such payment of expenses in advance of the final disposition of the proceeding
shall be made only upon receipt of an undertaking, by or on behalf of the indemnitee, to repay all amounts so advanced if it shall ultimately
be determined that the indemnitee is not entitled to be indemnified under this Article IX or otherwise. The rights to indemnification
and advancement of expenses conferred by this Article IX shall be contract rights and such rights shall continue as to an indemnitee
who has ceased to be a director, officer, employee or agent and shall inure to the benefit of his or her heirs, executors, administrators,
legatees and distributees. Notwithstanding the foregoing provisions of this Article IX, except for proceedings to enforce rights
to indemnification and advancement of expenses, the Corporation shall indemnify and advance expenses to an indemnitee in connection with
a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized by the Board of
Directors.
B. The rights to indemnification
and advancement of expenses conferred on any indemnitee by this Article IX shall not be exclusive of any other rights that any
indemnitee may have or hereafter acquire under law, this Second Amended and Restated Certificate, the Bylaws, an agreement, vote of stockholders
or disinterested directors, or otherwise.
C. Any repeal or amendment
of this Article IX by the stockholders of the Corporation or by changes in law, or the adoption of any other provision of this
Second Amended and Restated Certificate inconsistent with this Article IX, shall, unless otherwise required by law, be prospective
only (except to the extent such amendment or change in law permits the Corporation to provide broader indemnification rights on a retroactive
basis than permitted prior thereto), and shall not in any way diminish or adversely affect any right or protection existing at the time
of such repeal or amendment or adoption of such inconsistent provision in respect of any proceeding (regardless of when such proceeding
is first threatened, commenced or completed) arising out of, or related to, any act or omission occurring prior to such repeal or amendment
or adoption of such inconsistent provision.
D. This Article IX
shall not limit the right of the Corporation, to the extent and in the manner authorized or permitted by law, to indemnify and to advance
expenses to persons other than indemnitees.
ARTICLE
X
FORUM SELECTION
Unless the Corporation
consents in writing to the selection of an alternative forum, (a) the Court of Chancery (the “Chancery Court”) of
the State of Delaware (or, in the event that the Chancery Court does not have jurisdiction, the federal district court for the
District of Delaware or other state courts of the State of Delaware) shall, to the fullest extent permitted by law, be the sole
and exclusive forum for (i) any derivative action, suit or proceeding brought on behalf of the Corporation, (ii) any action, suit or
proceeding asserting a claim of breach of a fiduciary duty owed by any director, officer or stockholder of the Corporation to the
Corporation or to the Corporation’s stockholders, (iii) any action, suit or proceeding arising pursuant to any provision of
the DGCL or the Bylaws of the Corporation or this Second Amended and Restated Certificate (as either may be amended from time to
time) or (iv) any action, suit or proceeding asserting a claim against the Corporation governed by the internal affairs doctrine;
and (b) subject to the preceding provisions of this Article X, the federal district courts of the United States of America
(the “Federal Courts”) shall be the exclusive forum for the resolution of any complaint asserting a cause of
action arising under the Securities Act of 1933, as amended, except for, as to each of clause (a) and (b), any claim as to which the
Chancery Court or the Federal Courts, as applicable, determines that there is an indispensable party not subject to the jurisdiction
of the Chancery Court or the Federal Courts, as applicable (and the indispensable party does not consent to the personal
jurisdiction of the Chancery Court or Federal Courts, as applicable, within ten days following such determination), which is vested
in the exclusive jurisdiction of a court or forum other than the Chancery Court or the Federal Courts, as applicable, or for which
the Chancery Court or Federal Courts, as applicable, does not have subject matter jurisdiction. If any action the subject matter of
which is within the scope of clause (a) of the immediately preceding sentence is filed in a court other than the courts in the State
of Delaware (a “Foreign Action”) in the name of any stockholder, such stockholder shall be deemed to have
consented to (x) the personal jurisdiction of the state and federal courts in the State of Delaware in connection with any action
brought in any such court to enforce the provisions of clause (a) of the immediately preceding sentence and (y) having service of
process made upon such stockholder in any such action by service upon such stockholder’s counsel in the Foreign Action as
agent for such stockholder.
Any person or entity purchasing
or otherwise acquiring any interest in any security of the Corporation shall be deemed to have notice of and consented to this Article
X. This Article X is intended to benefit and may be enforced by the Corporation, its officers and directors, the underwriters
to any offering giving rise to such complaint, and any other professional or entity whose profession gives authority to a statement made
by that person or entity and who has prepared or certified any part of the documents underlying the offering.
Notwithstanding the foregoing,
the provisions of this Article X shall not apply to suits brought to enforce any liability or duty created by the Securities Exchange
Act of 1934, as amended, or any other claim for which the federal courts of the United States have exclusive jurisdiction.
If any provision or provisions
of this Article X shall be held to be invalid, illegal or unenforceable as applied to any circumstance for any reason whatsoever,
(a) the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this Article
X (including, without limitation, each portion of any paragraph of this Article X containing any such provision held to be
invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or
impaired thereby and (b) the application of such provision to other persons or entities and circumstances shall not in any way be affected
or impaired thereby.
ARTICLE
XI
AMENDMENTS
A. The Corporation
reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Second
Amended and Restated Certificate (including any Preferred Stock Designation), and to add or insert other provisions authorized by
the laws of the State of Delaware at the time in force that may be added or inserted, in the manner now or hereafter prescribed by
this Second Amended and Restated Certificate and the DGCL; provided, however, that notwithstanding anything contained
in this Second Amended and Restated Certificate to the contrary, in addition to any vote required by applicable law, the following
provisions in this Second Amended and Restated Certificate may be amended, altered, repealed or rescinded, in whole or in part, or
any provision inconsistent therewith or herewith may be adopted, only by the affirmative vote of the holders of at least two-thirds
(66 and 2/3%) of the total voting power of all the then outstanding shares of capital stock of the Corporation entitled to vote
thereon, voting together as a single class: Part B of Article IV, Article V, Article
VI, Article VII, Article VIII, Article IX, Article X and this Article XI.
B. If any provision or provisions
of this Second Amended and Restated Certificate shall be held to be invalid, illegal or unenforceable as applied to any person, entity,
or circumstance for any reason whatsoever: (i) the validity, legality and enforceability of such provisions in any other circumstance
and of the remaining provisions of this Second Amended and Restated Certificate (including, without limitation, each portion of any paragraph
of this Second Amended and Restated Certificate containing any such provision held to be invalid, illegal or unenforceable that is not
itself held to be invalid, illegal or unenforceable) shall not, to the fullest extent permitted by applicable law, in any way be affected
or impaired thereby and (ii) to the fullest extent permitted by applicable law, the provisions of this Second Amended and Restated Certificate
or any other provision of the Bylaws of the Corporation or any agreement entered into by the Corporation (including, without limitation,
each such portion of any paragraph of this Second Amended and Restated Certificate containing any such provision held to be invalid, illegal
or unenforceable) shall be construed so as to permit the Corporation to protect its directors, officers, employees and agents from personal
liability in respect of their good faith service to or for the benefit of the Corporation to the fullest extent permitted by law. Any
person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have
notice of and consented to the provisions of this Second Amended and Restated Certificate. To the fullest extent permitted by law, each
and every person or entity purchasing or otherwise acquiring any interest (of any nature whatsoever) in any shares of the capital stock
of the Corporation shall be deemed, by reason of and from and after the time of such purchase or other acquisition, to have notice of
and to have consented to all of the provisions of (a) this Second Amended and Restated Certificate, (b) the Bylaws and (c) any amendment
to this Second Amended and Restated Certificate or the Bylaws enacted or adopted in accordance with this Second Amended and Restated Certificate,
the Bylaws and applicable law.
Exhibit 3.2
Amended and Restated Bylaws of
Infrared Cameras Holdings, Inc.
(a Delaware corporation)
Table of Contents
Page
Article I - Corporate Offices |
1 |
1.1 |
Registered Office |
1 |
1.2 |
Other Offices |
1 |
Article II - Meetings of Stockholders |
1 |
2.1 |
Place of Meetings |
1 |
2.2 |
Annual Meeting |
1 |
2.3 |
Special Meeting |
1 |
2.4 |
Notice of Business to be Brought before a Meeting. |
2 |
2.5 |
Notice of Nominations for Election to the Board. |
5 |
2.6 |
Notice of Stockholders’ Meetings |
8 |
2.7 |
Quorum |
8 |
2.8 |
Adjourned Meeting; Notice |
9 |
2.9 |
Conduct of Business |
9 |
2.10 |
Voting |
10 |
2.11 |
Record Date for Stockholder Meetings and Other Purposes |
10 |
2.12 |
Proxies |
10 |
2.13 |
List of Stockholders Entitled to Vote |
11 |
2.14 |
Inspectors of Election |
11 |
2.15 |
Delivery to the Corporation. |
12 |
Article III - Directors |
12 |
3.1 |
Powers |
12 |
3.2 |
Number of Directors |
12 |
3.3 |
Election, Qualification and Term of Office of Directors |
12 |
3.4 |
|
12 |
3.5 |
Resignation and Vacancies |
13 |
3.6 |
Place of Meetings; Meetings by Telephone |
13 |
3.7 |
Regular Meetings |
13 |
3.8 |
Special Meetings; Notice |
13 |
3.9 |
Quorum |
14 |
3.10 |
Chairperson |
14 |
3.11 |
Board Action without a Meeting |
14 |
3.12 |
Fees and Compensation of Directors |
14 |
Article IV - Committees |
15 |
4.1 |
Committees of Directors |
15 |
4.2 |
Committee Minutes |
15 |
4.3 |
Meetings and Actions of Committees |
15 |
4.4 |
Subcommittees. |
16 |
Article V - Officers |
16 |
5.1 |
Officers |
16 |
5.2 |
Appointment of Officers |
16 |
5.3 |
Subordinate Officers |
16 |
5.4 |
Removal and Resignation of Officers |
16 |
5.5 |
Vacancies in Offices |
17 |
5.6 |
Representation of Shares of Other Corporations |
17 |
5.7 |
Authority and Duties of Officers |
17 |
5.8 |
Compensation. |
17 |
Article VI - Records |
17 |
Article VII - General Matters |
18 |
7.1 |
Execution of Corporate Contracts and Instruments |
18 |
7.2 |
Stock Certificates |
18 |
7.3 |
Special Designation of Certificates. |
18 |
7.4 |
Lost Certificates |
19 |
7.5 |
Shares Without Certificates |
19 |
7.6 |
Construction; Definitions |
19 |
7.7 |
Dividends |
19 |
7.8 |
Fiscal Year |
19 |
7.9 |
Seal |
19 |
7.10 |
Transfer of Stock |
20 |
7.11 |
Stock Transfer Agreements |
20 |
7.12 |
Registered Stockholders |
20 |
7.13 |
Waiver of Notice |
20 |
Article VIII - Notice |
20 |
8.1 |
Delivery of Notice; Notice by Electronic Transmission |
20 |
Article IX - Indemnification |
21 |
9.1 |
Indemnification of Directors and Officers |
21 |
9.2 |
Indemnification of Others |
22 |
9.3 |
Prepayment of Expenses |
22 |
9.4 |
Determination; Claim |
22 |
9.5 |
Non-Exclusivity of Rights |
22 |
9.6 |
Insurance |
23 |
9.7 |
Other Indemnification |
23 |
9.8 |
Continuation of Indemnification |
23 |
9.9 |
Amendment or Repeal; Interpretation |
23 |
Article X - Amendments |
24 |
Article XI - Definitions |
24 |
Second Amended and Restated Bylaws of
Infrared Cameras Holdings, Inc.
Article I - Corporate Offices
1.1
Registered Office.
The address of the registered
office of Infrared Cameras Holdings, Inc. (the “Corporation”) in the State of Delaware, and the name of its registered
agent at such address, shall be as set forth in the Corporation’s certificate of incorporation, as the same may be amended, restated
or otherwise modified from time to time (the “Certificate of Incorporation”).
1.2
Other Offices.
The Corporation may have additional
offices at any place or places, within or outside the State of Delaware, as the Corporation’s board of directors (the “Board”)
may from time to time establish or as the business and affairs of the Corporation may require.
Article II - Meetings of
Stockholders
2.1
Place of Meetings.
Meetings of stockholders shall
be held at any place, within or outside the State of Delaware, as designated by the Board. The Board may, in its sole discretion, determine
that a meeting of stockholders shall not be held at any place, but may instead be held solely by means of remote communication as authorized
by Section 211(a)(2) of the General Corporation Law of the State of Delaware (the “DGCL”). In the absence of any
such designation or determination, stockholders’ meetings shall be held at the Corporation’s principal executive office, whether
within or outside of the State of Delaware.
2.2
Annual Meeting.
The Board shall designate
the date and time of the annual meeting. At the annual meeting, the stockholders entitled to vote on such matters shall elect those directors
of the Corporation to fill any term of a directorship that expires on the date of such annual meeting and may transact any other business
as may properly be brought before the meeting in accordance with Section 2.4 and the DGCL. The Board may postpone, reschedule or
cancel any previously scheduled annual meeting of stockholders.
2.3
Special Meeting.
Special meetings of the stockholders
may be called only by such persons and only in such manner as set forth in the Certificate of Incorporation.
No business may be transacted
at any special meeting of stockholders other than the business specified in the notice of such meeting. The Board may postpone, reschedule
or cancel any previously scheduled special meeting of stockholders.
2.4
Notice of Business to be Brought before a Meeting.
(a)
At an annual meeting of the stockholders, only such business shall be conducted as shall have been properly brought before the
meeting. To be properly brought before an annual meeting, business must be (i) specified in the Corporation’s notice of meeting
(or any supplement thereto) given by or at the direction of the Board, (ii) if not specified in a notice of meeting, otherwise brought
before the meeting by or at the direction of the Board or the Chairman of the Board or (iii) otherwise properly brought before the
meeting by a stockholder present in person who (A) (1) was a record owner of shares of the Corporation both at the time of giving the
notice provided for in this Section 2.4 and at the time of the meeting, (2) is entitled to vote at the meeting and (3) has complied
with this Section 2.4 in all applicable respects or (B) properly made such proposal in accordance with Rule 14a-8 under the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (as so amended and inclusive of such rules and
regulations, the “Exchange Act”). The foregoing clause (iii) shall be the exclusive means for a stockholder to propose
business to be brought before an annual meeting of the stockholders. Except as set forth in the immediately preceding sentence, the only
matters that may be brought before a special meeting are the matters specified in the notice of meeting given by or at the direction of
the person calling the meeting pursuant to Section 2.3, and stockholders shall not be permitted to propose business to be brought
before a special meeting of the stockholders. For purposes of this Section 2.4, “present in person” shall
mean that the stockholder proposing that the business be brought before the annual meeting of the Corporation, or a qualified representative
of such proposing stockholder, appear at such annual meeting. A “qualified representative” of such proposing stockholder
shall be a duly authorized officer, manager or partner of such stockholder or any other person authorized by a writing executed by such
stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy at the meeting of stockholders
and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission,
at the meeting of stockholders. Stockholders seeking to nominate persons for election to the Board must comply with Section 2.5,
and this Section 2.4 shall not be applicable to nominations except as expressly provided in Section 2.5.
(b)
For business to be properly brought before an annual meeting by a stockholder, the stockholder must (i) provide Timely Notice
(as defined below) thereof in writing and in proper form to the Secretary of the Corporation and (ii) provide any updates or supplements
to such notice at the times and in the forms required by this Section 2.4. To be timely, a stockholder’s notice must
be delivered to, or mailed and received at, the principal executive offices of the Corporation not less than ninety (90) days nor more
than one hundred twenty (120) days prior to the one-year anniversary of the preceding year’s annual meeting; provided, however,
that if no annual meeting was held in the preceding year, to be timely, a stockholder’s notice must be so delivered, or mailed and
received, not earlier than the close of business on the one hundred and twentieth (120th) day prior to such annual meeting
and not later than the close of business on the later of the ninetieth (90th) day prior to such annual meeting or, if later,
the tenth (10th) day following the day on which public disclosure of the date of such annual meeting was first made by the
Corporation; provided, further, that if the date of the annual meeting is more than thirty (30) days before or more than sixty
(60) days after such anniversary date, to be timely, a stockholder’s notice must be so delivered, or mailed and received, not later
than the ninetieth (90th) day prior to such annual meeting or, if later, the tenth (10th) day following the day
on which public disclosure of the date of such annual meeting was first made by the Corporation (such notice within such time periods,
“Timely Notice”). In no event shall any adjournment or postponement of an annual meeting or the announcement thereof
commence a new time period for the giving of Timely Notice as described above.
(c)
To be in proper form for purposes of this Section 2.4, a stockholder’s notice to the Secretary of the Corporation
shall set forth:
(i) As
to each Proposing Person (as defined below), (A) the name and address of such Proposing Person (including, if applicable, the name
and address that appear on the Corporation’s books and records); and (B) the class or series and number of shares of the Corporation
that are, directly or indirectly, owned of record or beneficially owned (within the meaning of Rule 13d-3 under the Exchange Act) by such
Proposing Person, except that such Proposing Person shall in all events be deemed to beneficially own any shares of any class or series
of the Corporation as to which such Proposing Person has a right to acquire beneficial ownership at any time in the future (the disclosures
to be made pursuant to the foregoing clauses (A) and (B) are referred to as “Stockholder Information”);
(ii) As
to each Proposing Person, (A) the full notional amount of any securities that, directly or indirectly, underlie any “derivative
security” (as such term is defined in Rule 16a-1(c) under the Exchange Act) that constitutes a “call equivalent position”
(as such term is defined in Rule 16a-1(b) under the Exchange Act) (“Synthetic Equity Position”) and that is, directly
or indirectly, held or maintained by such Proposing Person with respect to any shares of any class or series of shares of the Corporation;
provided that, for the purposes of the definition of “Synthetic Equity Position,” the term “derivative security”
shall also include any security or instrument that would not otherwise constitute a “derivative security” as a result of any
feature that would make any conversion, exercise or similar right or privilege of such security or instrument becoming determinable only
at some future date or upon the happening of a future occurrence, in which case the determination of the amount of securities into which
such security or instrument would be convertible or exercisable shall be made assuming that such security or instrument is immediately
convertible or exercisable at the time of such determination; and, provided, further, that any Proposing Person satisfying the
requirements of Rule 13d-1(b)(1) under the Exchange Act (other than a Proposing Person that so satisfies Rule 13d-1(b)(1) under the Exchange
Act solely by reason of Rule 13d-1(b)(1)(ii)(E)) shall not be deemed to hold or maintain the notional amount of any securities that underlie
a Synthetic Equity Position held by such Proposing Person as a hedge with respect to a bona fide derivatives trade or position of such
Proposing Person arising in the ordinary course of such Proposing Person’s business as a derivatives dealer, (B) any rights
to dividends on the shares of any class or series of shares of the Corporation owned beneficially by such Proposing Person that are separated
or separable from the underlying shares of the Corporation, (C) any material pending or threatened legal proceeding in which such Proposing
Person is a party or material participant involving the Corporation or any of its officers or directors, or any affiliate of the Corporation,
(D) any other material relationship between such Proposing Person, on the one hand, and the Corporation or any affiliate of the Corporation,
on the other hand, (E) any direct or indirect material interest in any material contract or agreement of such Proposing Person with the
Corporation or any affiliate of the Corporation (including, in any such case, any employment agreement, collective bargaining agreement
or consulting agreement), (F) a representation that such Proposing Person intends or is part of a group that intends to deliver a proxy
statement or form of proxy to holders of at least the percentage of the Corporation’s outstanding capital stock required to approve
or adopt the proposal or otherwise solicit proxies from stockholders in support of such proposal and (G) any other information relating
to such Proposing Person that would be required to be disclosed in a proxy statement or other filing required to be made in connection
with solicitations of proxies or consents by such Proposing Person in support of the business proposed to be brought before the meeting
pursuant to Section 14(a) of the Exchange Act (the disclosures to be made pursuant to the foregoing clauses (A) through (G) are referred
to as “Disclosable Interests”); provided, however, that Disclosable Interests shall not include any such
disclosures with respect to the ordinary course business activities of any broker, dealer, commercial bank, trust company or other nominee
who is a Proposing Person solely as a result of being the stockholder directed to prepare and submit the notice required by these bylaws
on behalf of a beneficial owner; and
(iii)
As to each item of business that the stockholder proposes to bring before the annual
meeting, (A) a brief description of the business desired to be brought before the annual meeting, the reasons for conducting
such business at the annual meeting and any material interest in such business of each Proposing Person, (B) the text of the
proposal or business (including the text of any resolutions proposed for consideration and in the event that such business includes
a proposal to amend these bylaws, the language of the proposed amendment), and (C) a reasonably detailed description of all
agreements, arrangements and understandings (x) between or among any of the Proposing Persons or (y) between or among any Proposing
Person and any other person or entity (including their names) in connection with the proposal of such business by such stockholder;
and (D) any other information relating to such item of business that would be required to be disclosed in a proxy statement or other
filing required to be made in connection with solicitations of proxies in support of the business proposed to be brought before the
meeting pursuant to Section 14(a) of the Exchange Act; provided, however, that the disclosures required by this Section
2.4(c)(iii) shall not include any disclosures with respect to any broker, dealer, commercial bank, trust company or other
nominee who is a Proposing Person solely as a result of being the stockholder directed to prepare and submit the notice required by
these bylaws on behalf of a beneficial owner.
For purposes of this Section
2.4, the term “Proposing Person” shall mean (i) the stockholder providing the notice of business proposed
to be brought before an annual meeting, (ii) the beneficial owner or beneficial owners, if different, on whose behalf the notice
of the business proposed to be brought before the annual meeting is made, and (iii) any participant (as defined in paragraphs (a)(ii)-(vi)
of Instruction 3 to Item 4 of Schedule 14A) with such stockholder in such solicitation.
(d)
A Proposing Person shall update and supplement its notice to the Corporation of its intent to propose business at an annual meeting,
if necessary, so that the information provided or required to be provided in such notice pursuant to this Section 2.4 shall be
true and correct as of the record date for stockholders entitled to vote at the meeting and as of the date that is ten (10) business days
prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to, or mailed and received
by, the Secretary of the Corporation at the principal executive offices of the Corporation not later than five (5) business days after
the record date for stockholders entitled to vote at the meeting (in the case of the update and supplement required to be made as of such
record date), and not later than eight (8) business days prior to the date for the meeting or, if practicable, any adjournment or postponement
thereof (and, if not practicable, on the first practicable date prior to the date to which the meeting has been adjourned or postponed)
(in the case of the update and supplement required to be made as of ten (10) business days prior to the meeting or any adjournment or
postponement thereof). For the avoidance of doubt, the obligation to update and supplement as set forth in this paragraph or any other
Section of these bylaws shall not limit the Corporation’s rights with respect to any deficiencies in any notice provided by a stockholder,
extend any applicable deadlines hereunder or enable or be deemed to permit a stockholder who has previously submitted notice hereunder
to amend or update any proposal or to submit any new proposal, including by changing or adding matters, business or resolutions proposed
to be brought before a meeting of the stockholders.
(e)
Notwithstanding anything in these bylaws to the contrary, no business shall be conducted at an annual meeting that is not properly
brought before the meeting in accordance with this Section 2.4. The presiding officer of the meeting shall, if the facts warrant,
determine that the business was not properly brought before the meeting in accordance with this Section 2.4, and if he or she should
so determine, he or she shall so declare to the meeting and any such business not properly brought before the meeting shall not be transacted.
(f) This Section
2.4 is expressly intended to apply to any business proposed to be brought before an annual meeting of stockholders other than
any proposal made in accordance with Rule 14a-8 under the Exchange Act and included in the Corporation’s proxy statement. In
addition to the requirements of this Section 2.4 with respect to any business proposed to be brought before an annual
meeting, each Proposing Person shall comply with all applicable requirements of the Exchange Act with respect to any such business.
Nothing in this Section 2.4 shall be deemed to affect the rights of stockholders to request inclusion of proposals in the
Corporation’s proxy statement pursuant to Rule 14a-8 under the Exchange Act.
(g)
For purposes of these bylaws, “public disclosure” shall mean disclosure in a press release reported by a national
news service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Sections 13, 14
or 15(d) of the Exchange Act.
2.5
Notice of Nominations for Election to the Board.
(a)
Nominations of any person for election to the Board at an annual meeting or at a special meeting (but only if the election of directors
is a matter specified in the notice of meeting given by or at the direction of the person calling such special meeting) may be made at
such meeting only (i) by or at the direction of the Board, including by any committee or persons authorized to do so by the Board or these
bylaws, or (ii) by a stockholder present in person (A) who was a record owner of shares of the Corporation both at the time of giving
the notice provided for in this Section 2.5 and at the time of the meeting, (B) is entitled to vote at the meeting, and (C) has
complied with this Section 2.5 as to such notice and nomination. For purposes of this Section 2.5, “present in
person” shall mean that the stockholder proposing that the business be brought before the meeting of the Corporation, or a qualified
representative of such stockholder, appear at such meeting. A “qualified representative” of such proposing stockholder
shall be a duly authorized officer, manager or partner of such stockholder or any other person authorized by a writing executed by such
stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy at the meeting of stockholders
and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission,
at the meeting of stockholders. The foregoing clause (ii) shall be the exclusive means for a stockholder to make any nomination of a person
or persons for election to the Board at an annual meeting or special meeting.
(b)
(i) Without qualification, for a stockholder to make any nomination of a person or persons for election to the Board at an annual
meeting, the stockholder must (1) provide Timely Notice (as defined in Section 2.4) thereof in writing and in proper form
to the Secretary of the Corporation, (2) provide the information, agreements and questionnaires with respect to such stockholder and its
candidate for nomination as required to be set forth by this Section 2.5 and (3) provide any updates or supplements to such
notice at the times and in the forms required by this Section 2.5.
(ii) Without qualification,
if the election of directors is a matter specified in the notice of meeting given by or at the direction of the person calling a special
meeting, then for a stockholder to make any nomination of a person or persons for election to the Board at a special meeting, the stockholder
must (i) provide Timely Notice thereof in writing and in proper form to the Secretary of the Corporation at the principal executive
offices of the Corporation, (ii) provide the information with respect to such stockholder and its candidate for nomination as required
by this Section 2.5 and (iii) provide any updates or supplements to such notice at the times and in the forms required by
this Section 2.5. To be timely, a stockholder’s notice for nominations to be made at a special meeting must be delivered
to, or mailed and received at, the principal executive offices of the Corporation not earlier than the one hundred twentieth (120th)
day prior to such special meeting and not later than the ninetieth (90th) day prior to such special meeting or, if later, the
tenth (10th) day following the day on which public disclosure (as defined in Section 2.4) of the date of such special
meeting was first made.
(iii) In no event shall any
adjournment or postponement of an annual meeting or special meeting or the announcement thereof commence a new time period for the giving
of a stockholder’s notice as described above.
(iv) In no event may a Nominating
Person provide Timely Notice with respect to a greater number of director candidates than are subject to election by shareholders at the
applicable meeting. If the Corporation shall, subsequent to such notice, increase the number of directors subject to election at the meeting,
such notice as to any additional nominees shall be due on the later of (i) the conclusion of the time period for Timely Notice, (ii) the
date set forth in Section 2.5(b)(ii) or (iii) the tenth day following the date of public disclosure (as defined in Section 2.4)
of such increase.
(c)
To be in proper form for purposes of this Section 2.5, a stockholder’s notice to the Secretary of the Corporation
shall set forth:
(i) As
to each Nominating Person (as defined below), the Stockholder Information (as defined in Section 2.4(c)(i), except that for purposes
of this Section 2.5, the term “Nominating Person” shall be substituted for the term “Proposing Person”
in all places it appears in Section 2.4(c)(i));
(ii) As
to each Nominating Person, any Disclosable Interests (as defined in Section 2.4(c)(ii), except that for purposes of this Section
2.5, the term “Nominating Person” shall be substituted for the term “Proposing Person” in all
places it appears in Section 2.4(c)(ii) and the disclosure with respect to the business to be brought before the meeting in Section
2.4(c)(ii) shall be made with respect to the election of directors at the meeting); and
(iii) As
to each candidate whom a Nominating Person proposes to nominate for election as a director, (A) all information with respect to such
candidate for nomination that would be required to be set forth in a stockholder’s notice pursuant to this Section 2.5 if
such candidate for nomination were a Nominating Person, (B) all information relating to such candidate for nomination that is required
to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of
directors in a contested election pursuant to Section 14(a) under the Exchange Act (including such candidate’s written consent to
being named in the proxy statement as a nominee and to serving as a director if elected), (C) a description of any direct or indirect
material interest in any material contract or agreement between or among any Nominating Person, on the one hand, and each candidate for
nomination or his or her respective associates or any other participants in such solicitation, on the other hand, including, without limitation,
all information that would be required to be disclosed pursuant to Item 404 under Regulation S-K if such Nominating Person were the “registrant”
for purposes of such rule and the candidate for nomination were a director or executive officer of such registrant and (D) a completed
and signed questionnaire, representation and agreement as provided in Section 2.5(f).
For purposes of this Section
2.5, the term “Nominating Person” shall mean (i) the stockholder providing the notice of the nomination proposed
to be made at the meeting, (ii) the beneficial owner or beneficial owners, if different, on whose behalf the notice of the nomination
proposed to be made at the meeting is made, and (iii) any other participant in such solicitation.
(d) A
stockholder providing notice of any nomination proposed to be made at a meeting shall further update and supplement such notice, if
necessary, so that the information provided or required to be provided in such notice pursuant to this Section 2.5 shall be
true and correct as of the record date for stockholders entitled to vote at the meeting and as of the date that is ten (10) business
days prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to, or
mailed and received by, the Secretary of the Corporation at the principal executive offices of the Corporation not later than five
(5) business days after the record date for stockholders entitled to vote at the meeting (in the case of the update and supplement
required to be made as of such record date), and not later than eight (8) business days prior to the date for the meeting or, if
practicable, any adjournment or postponement thereof (and, if not practicable, on the first practicable date prior to the date to
which the meeting has been adjourned or postponed) (in the case of the update and supplement required to be made as of ten (10)
business days prior to the meeting or any adjournment or postponement thereof). For the avoidance of doubt, the obligation to update
and supplement as set forth in this paragraph or any other Section of these bylaws shall not limit the Corporation’s rights
with respect to any deficiencies in any notice provided by a stockholder, extend any applicable deadlines hereunder or enable or be
deemed to permit a stockholder who has previously submitted notice hereunder to amend or update any nomination or to submit any new
nomination.
(e)
In addition to the requirements of this Section 2.5 with respect to any nomination proposed to be made at a meeting, each
Nominating Person shall comply with all applicable requirements of the Exchange Act with respect to any such nominations.
(f)
To be eligible to be a candidate for election as a director of the Corporation at an annual or special meeting, a candidate must
be nominated in the manner prescribed in Section 2.5 and the candidate for nomination, whether nominated by the Board or by a stockholder
of record, must have previously delivered (in accordance with the time period prescribed for delivery in a notice to such candidate given
by or on behalf of the Board), to the Secretary of the Corporation at the principal executive offices of the Corporation, (i) a completed
written questionnaire (in a form provided by the Corporation) with respect to the background, qualifications, stock ownership and independence
of such proposed nominee and (ii) a written representation and agreement (in form provided by the Corporation) that such candidate for
nomination (A) is not and, if elected as a director during his or her term of office, will not become a party to (1) any agreement, arrangement
or understanding with, and has not given and will not give any commitment or assurance to, any person or entity as to how such proposed
nominee, if elected as a director of the Corporation, will act or vote on any issue or question (a “Voting Commitment”)
or (2) any Voting Commitment that could limit or interfere with such proposed nominee’s ability to comply, if elected as a director
of the Corporation, with such proposed nominee’s fiduciary duties under applicable law, (B) is not, and will not become a party
to, any agreement, arrangement or understanding with any person or entity other than the Corporation with respect to any direct or indirect
compensation or reimbursement for service as a director that has not been disclosed to the Corporation and (C) if elected as a director
of the Corporation, will comply with all applicable corporate governance, conflict of interest, confidentiality, stock ownership and trading
and other policies and guidelines of the Corporation applicable to directors and in effect during such person’s term in office as
a director (and, if requested by any candidate for nomination, the Secretary of the Corporation shall provide to such candidate for nomination
all such policies and guidelines then in effect).
(g)
The Board may also require any proposed candidate for nomination as a Director to furnish such other information as may reasonably
be requested by the Board in writing prior to the meeting of stockholders at which such candidate’s nomination is to be acted upon
in order for the Board to determine the eligibility of such candidate for nomination to be an independent director of the Corporation
in accordance with the Corporation’s corporate governance guidelines.
(h) A
candidate for nomination as a director shall further update and supplement the materials delivered pursuant to this Section
2.5, if necessary, so that the information provided or required to be provided pursuant to this Section 2.5 shall be true
and correct as of the record date for stockholders entitled to vote at the meeting and as of the date that is ten (10) business days
prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to, or mailed and
received by, the Secretary of the Corporation at the principal executive offices of the Corporation (or any other office specified
by the Corporation in any public announcement) not later than five (5) business days after the record date for stockholders entitled
to vote at the meeting (in the case of the update and supplement required to be made as of such record date), and not later than
eight (8) business days prior to the date for the meeting or, if practicable, any adjournment or postponement thereof (and, if not
practicable, on the first practicable date prior to the date to which the meeting has been adjourned or postponed) (in the case of
the update and supplement required to be made as of ten (10) business days prior to the meeting or any adjournment or postponement
thereof). For the avoidance of doubt, the obligation to update and supplement as set forth in this paragraph or any other Section of
these bylaws shall not limit the Corporation’s rights with respect to any deficiencies in any notice provided by a
stockholder, extend any applicable deadlines hereunder or enable or be deemed to permit a stockholder who has previously submitted
notice hereunder to amend or update any proposal or to submit any new proposal, including by changing or adding nominees, matters,
business or resolutions proposed to be brought before a meeting of the stockholders.
(i)
No candidate shall be eligible for nomination as a director of the Corporation unless such candidate for nomination and the Nominating
Person seeking to place such candidate’s name in nomination has complied with this Section 2.5. The presiding officer at
the meeting shall, if the facts warrant, determine that a nomination was not properly made in accordance with Section 2.5, and
if he or she should so determine, he or she shall so declare such determination to the meeting, the defective nomination shall be disregarded
and any ballots cast for the candidate in question (but in the case of any form of ballot listing other qualified nominees, only the ballots
cast for the nominee in question) shall be void and of no force or effect.
(j)
Notwithstanding anything in these bylaws to the contrary, no candidate for nomination shall be eligible to be seated as a director
of the Corporation unless nominated and elected in accordance with Section 2.5.
2.6
Notice of Stockholders’ Meetings.
Unless otherwise provided
by law, the Certificate of Incorporation or these bylaws, the notice of any meeting of stockholders shall be sent or otherwise given in
accordance with Section 8.1 not less than ten (10) nor more than sixty (60) days before the date of the meeting to each stockholder
entitled to vote at such meeting. The notice shall specify the place, if any, date and time of the meeting, the means of remote communication,
if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, and, in the case of a
special meeting, the purpose or purposes for which the meeting is called.
2.7
Quorum.
Unless otherwise
provided by law, the Certificate of Incorporation or these bylaws, the holders of a majority in voting power of the stock issued and
outstanding and entitled to vote, present in person, or by remote communication, if applicable, or represented by proxy, shall
constitute a quorum for the transaction of business at all meetings of the stockholders. A quorum, once established at a meeting,
shall not be broken by the withdrawal of enough votes to leave less than a quorum. If, however, a quorum is not present or
represented at any meeting of the stockholders, then either (i) the person presiding over the meeting or (ii) a majority
in voting power of the stockholders entitled to vote at the meeting, present in person, or by remote communication, if applicable,
or represented by proxy, shall have power to recess the meeting or adjourn the meeting from time to time in the manner provided in Section
2.8 until a quorum is present or represented. At any recessed or adjourned meeting at which a quorum is present or represented,
any business may be transacted that might have been transacted at the meeting as originally noticed.
2.8
Adjourned Meeting; Notice.
When a meeting is adjourned
to another time or place, unless these bylaws otherwise require, notice need not be given of the adjourned meeting if the time, place,
if any, thereof, and the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in
person and vote at such adjourned meeting are announced at the meeting at which the adjournment is taken. At any adjourned meeting, the
Corporation may transact any business which might have been transacted at the original meeting. If the adjournment is for more than thirty
(30) days, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. If after the
adjournment a new record date for determination of stockholders entitled to vote is fixed for the adjourned meeting, the Board shall fix
as the record date for determining stockholders entitled to notice of such adjourned meeting the same or an earlier date as that fixed
for determination of stockholders entitled to vote at the adjourned meeting, and shall give notice of the adjourned meeting to each stockholder
of record entitled to vote at such meeting as of the record date so fixed for notice of such adjourned meeting in accordance with Section
8.1.
2.9
Conduct of Business.
The date and time of the opening
and the closing of the polls for each matter upon which the stockholders will vote at a meeting shall be announced at the meeting by the
person presiding over the meeting. The Board may adopt by resolution such rules and regulations for the conduct of the meeting of stockholders
as it shall deem appropriate. Except to the extent inconsistent with such rules and regulations as adopted by the Board, the person presiding
over any meeting of stockholders shall have the right and authority to convene and (for any or no reason) to recess and/or adjourn the
meeting, to prescribe such rules, regulations and procedures (which need not be in writing) and to do all such acts as, in the judgment
of such presiding person, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted
by the Board or prescribed by the person presiding over the meeting, may include, without limitation, the following: (i) the establishment
of an agenda or order of business for the meeting; (ii) rules and procedures for maintaining order at the meeting and the safety of those
present (including, without limitation, rules and procedures for removal of disruptive persons from the meeting); (iii) limitations on
attendance at or participation in the meeting to stockholders entitled to vote at the meeting, their duly authorized and constituted proxies
or such other persons as the person presiding over the meeting shall determine; (iv) restrictions on entry to the meeting after the time
fixed for the commencement thereof; and (v) limitations on the time allotted to questions or comments by participants. The presiding person
at any meeting of stockholders, in addition to making any other determinations that may be appropriate to the conduct of the meeting (including,
without limitation, determinations with respect to the administration and/or interpretation of any of the rules, regulations or procedures
of the meeting, whether adopted by the Board or prescribed by the person presiding over the meeting), shall, if the facts warrant, determine
and declare to the meeting that a matter of business was not properly brought before the meeting and if such presiding person should so
determine, such presiding person shall so declare to the meeting and any such matter or business not properly brought before the meeting
shall not be transacted or considered. Unless and to the extent determined by the Board or the person presiding over the meeting, meetings
of stockholders shall not be required to be held in accordance with the rules of parliamentary procedure.
2.10
Voting.
Except as may be otherwise
provided in the Certificate of Incorporation, these bylaws or the DGCL, each stockholder shall be entitled to one (1) vote for each share
of capital stock held by such stockholder.
Except as otherwise provided
by the Certificate of Incorporation, at all duly called or convened meetings of stockholders at which a quorum is present, for the election
of directors, a plurality of the votes cast shall be sufficient to elect a director. Except as otherwise provided by the Certificate of
Incorporation, these bylaws, the rules or regulations of any stock exchange applicable to the Corporation, or applicable law or pursuant
to any regulation applicable to the Corporation or its securities, each other matter presented to the stockholders at a duly called or
convened meeting at which a quorum is present shall be decided by the affirmative vote of the holders of a majority in voting power of
the votes cast (excluding abstentions and broker non-votes) on such matter.
2.11
Record Date for Stockholder Meetings and Other Purposes.
In order that the Corporation
may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, the Board may
fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board,
and which record date shall, unless otherwise required by law, not be more than sixty (60) days nor less than ten (10) days before the
date of such meeting. If the Board so fixes a date, such date shall also be the record date for determining the stockholders entitled
to vote at such meeting unless the Board determines, at the time it fixes such record date, that a later date on or before the date of
the meeting shall be the date for making such determination. If no record date is fixed by the Board, the record date for determining
stockholders entitled to notice of or to vote at a meeting of stockholders shall be the close of business on the next day preceding the
day on which notice is first given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting
is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment
of the meeting; provided, however, that the Board may fix a new record date for determination of stockholders entitled to vote
at the adjourned meeting; and in such case shall also fix as the record date for stockholders entitled to notice of such adjourned meeting
the same or an earlier date as that fixed for determination of stockholders entitled to vote in accordance herewith at the adjourned meeting.
In order that the Corporation
may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment or any rights or the stockholders
entitled to exercise any rights in respect of any change, conversion or exchange of capital stock, or for the purposes of any other lawful
action, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date
is adopted, and which record date shall be not more than sixty (60) days prior to such action. If no record date is fixed, the record
date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board adopts the resolution
relating thereto.
2.12
Proxies.
Each stockholder
entitled to vote at a meeting of stockholders may authorize another person or persons to act for such stockholder by proxy
authorized by an instrument in writing or by a transmission permitted by law, including Rule 14a-19 promulgated under the Securities
Exchange Act of 1934, as amended, filed in accordance with the procedure established for the meeting, but no such proxy shall be
voted or acted upon after three (3) years from its date, unless the proxy provides for a longer period. The revocability of a proxy
that states on its face that it is irrevocable shall be governed by the provisions of Section 212 of the DGCL. A proxy may be in the
form of an electronic transmission which sets forth or is submitted with information from which it can be determined that the
transmission was authorized by the stockholder.
Any stockholder directly or
indirectly soliciting proxies from other stockholders must use a proxy card color other than white, which shall be reserved for the exclusive
use by the Board.
2.13
List of Stockholders Entitled to Vote.
The Corporation shall prepare,
at least ten (10) days before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting (provided,
however, that if the record date for determining the stockholders entitled to vote is less than ten (10) days before the date of the
meeting, the list shall reflect the stockholders entitled to vote as of the tenth (10th) day before the meeting date), arranged
in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder.
The Corporation shall not be required to include electronic mail addresses or other electronic contact information on such list. Such
list shall be open to the examination of any stockholder, for any purpose germane to the meeting for a period of at least ten (10) days
prior to the meeting: (i) on a reasonably accessible electronic network, provided that the information required to gain access
to such list is provided with the notice of the meeting, or (ii) during ordinary business hours, at the Corporation’s principal
executive office. In the event that the Corporation determines to make the list available on an electronic network, the Corporation may
take reasonable steps to ensure that such information is available only to stockholders of the Corporation. If the meeting is to be held
at a place, then the list shall be produced and kept at the time and place of the meeting during the whole time thereof, and may be inspected
by any stockholder who is present. If the meeting is to be held solely by means of remote communication, then the list shall also be open
to the examination of any stockholder during the whole time of the meeting on a reasonably accessible electronic network, and the information
required to access such list shall be provided with the notice of the meeting. Such list shall presumptively determine the identity of
the stockholders entitled to vote at the meeting and the number of shares held by each of them. Except as otherwise provided by law, the
stock ledger shall be the only evidence as to who are the stockholders entitled to examine the list of stockholders required by this Section
2.13 or to vote in person or by proxy at any meeting of stockholders.
2.14
Inspectors of Election.
Before any meeting of stockholders,
the Corporation shall appoint an inspector or inspectors of election to act at the meeting or its adjournment and make a written report
thereof. The Corporation may designate one or more persons as alternate inspectors to replace any inspector who fails to act. If any person
appointed as inspector or any alternate fails to appear or fails or refuses to act, then the person presiding over the meeting shall appoint
a person to fill that vacancy.
Such inspectors shall:
(i) determine the number of
shares outstanding and the voting power of each, the number of shares represented at the meeting and the validity of any proxies and ballots;
(ii) count all votes or ballots;
(iii) count and tabulate all
votes;
(iv) determine and retain for
a reasonable period a record of the disposition of any challenges made to any determination by the inspector(s); and
(v) certify its or their determination
of the number of shares represented at the meeting and its or their count of all votes and ballots.
Each inspector, before entering
upon the discharge of the duties of inspector, shall take and sign an oath faithfully to execute the duties of inspection with strict
impartiality and according to the best of such inspector’s ability. Any report or certificate made by the inspectors of election
is prima facie evidence of the facts stated therein. The inspectors of election may appoint such persons to assist them in performing
their duties as they determine.
2.15
Delivery to the Corporation.
Whenever this Article II
requires one or more persons (including a record or beneficial owner of stock) to deliver a document or information to the Corporation
or any officer, employee or agent thereof (including any notice, request, questionnaire, revocation, representation or other document
or agreement), such document or information shall be in writing exclusively (and not in an electronic transmission) and shall be delivered
exclusively by hand (including, without limitation, overnight courier service) or by certified or registered mail, return receipt requested,
and the Corporation shall not be required to accept delivery of any document not in such written form or so delivered. For the avoidance
of doubt, the Corporation expressly opts out of Section 116 of the DGCL with respect to the delivery of information and documents to the
Corporation required by this Article II.
Article III - Directors
3.1
Powers.
Except as otherwise provided
by the Certificate of Incorporation or the DGCL, the business and affairs of the Corporation shall be managed by or under the direction
of the Board.
3.2
Number of Directors.
Subject to the Certificate
of Incorporation, the number of directors constituting the whole Board shall be fixed exclusively by one or more resolutions adopted from
time to time by the Board. No decrease in the number of directors shall shorten the term of any incumbent director. The directors shall
be classified in the manner provided in the Certificate of Incorporation. Each director shall hold office until such time as provided
in the Certificate of Incorporation.
3.3
Election, Qualification and Term of Office of Directors.
Except as provided in Section 3.4,
and subject to the Certificate of Incorporation, each director, including a director elected to fill a vacancy or newly created directorship,
shall hold office until the expiration of the term of the class, if any, for which elected and until such director’s successor is
elected and qualified or until such director’s earlier death, resignation, disqualification, retirement or removal. Directors need
not be stockholders or residents of the State of Delaware. The Certificate of Incorporation or these bylaws may prescribe qualifications
for directors.
3.5
Resignation and Vacancies. Any director may resign at any time upon notice given in writing or by electronic transmission
to the Corporation. The resignation shall take effect at the time specified therein or upon the happening of an event specified therein,
and if no time or event is specified, at the time of its receipt. When one or more directors so resigns and the resignation is effective
at a future date or upon the happening of an event to occur on a future date, a majority of the directors then in office, including those
who have so resigned, shall have power to fill such vacancy or vacancies, the vote thereon to take effect when such resignation or resignations
shall become effective, and each director so chosen shall hold office as provided in Section 3.3.
Unless otherwise provided
in the Certificate of Incorporation or these bylaws, vacancies resulting from the death, resignation, disqualification or removal of any
director, and newly created directorships resulting from any increase in the authorized number of directors shall be filled only by a
majority of the directors then in office, although less than a quorum, or by a sole remaining director.
3.6
Place of Meetings; Meetings by Telephone.
The Board may hold meetings,
both regular and special, either within or outside the State of Delaware. Unless otherwise restricted by the Certificate of Incorporation
or these bylaws, members of the Board, or any committee designated by the Board, may participate in a meeting of the Board, or any committee,
by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear
each other, and such participation in a meeting pursuant to this bylaw shall constitute presence in person at the meeting.
3.7
Regular Meetings.
Regular meetings of the Board
may be held within or outside the State of Delaware and at such time and at such place as which has been designated by the Board and publicized
among all directors, either orally or in writing, by telephone, including a voice-messaging system or other system designed to record
and communicate messages, facsimile, telegraph or telex, or by electronic mail or other means of electronic transmission. No further notice
shall be required for regular meetings of the Board.
3.8
Special Meetings; Notice.
Special meetings of the Board
for any purpose or purposes may be called at any time by the Chairperson of the Board, the Chief Executive Officer, the President or the
Secretary of the Corporation or a majority of the total number of directors constituting the Board.
Notice of the time and place
of special meetings shall be:
(i) delivered personally by
hand, by courier or by telephone;
(ii) sent by United States first-class
mail, postage prepaid;
(iii) sent by facsimile or electronic
mail; or
(iv) sent by other means of
electronic transmission,
directed to each director at that director’s
address, telephone number, or electronic mail address, or other address for electronic transmission, as the case may be, as shown on the
Corporation’s records.
If the notice is (i) delivered
personally by hand, by courier or by telephone, (ii) sent by facsimile or electronic mail, or (iii) sent by other means of electronic
transmission, it shall be delivered or sent at least twenty-four (24) hours before the time of the holding of the meeting. If the notice
is sent by U.S. mail, it shall be deposited in the U.S. mail at least four (4) days before the time of the holding of the meeting. The
notice need not specify the place of the meeting (if the meeting is to be held at the Corporation’s principal executive office)
nor the purpose of the meeting.
3.9
Quorum.
At all meetings of the Board,
unless otherwise provided by the Certificate of Incorporation, a majority of the total number of directors shall constitute a quorum for
the transaction of business; provided that, solely for the purposes of filling vacancies pursuant to Section 3.04, a meeting of the Board
of Directors may be held if a majority of the Directors then in office participate in such meeting. The affirmative vote of a majority
of the directors present at any meeting of the Board at which a quorum is present shall be the act of the Board, except as may be otherwise
specifically required by applicable law, the Certificate of Incorporation or these bylaws. If a quorum is not present at any meeting of
the Board, then the directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the
meeting, until a quorum is present.
3.10
Chairperson.
The Board may appoint from
its members a chairperson (the “Chairperson”). Meetings of the Board shall be presided over by the Chairperson, or
in his or her absence by the person whom the Chairperson shall designate, or in the absence of the foregoing persons by a chairperson
chosen at the meeting by the affirmative vote of a majority of the directors present at the meeting. The Secretary shall act as secretary
of the meeting, but in his or her absence, the chairperson of the meeting may appoint any person to act as secretary of the meeting.
3.11
Board Action without a Meeting.
Unless otherwise restricted
by the Certificate of Incorporation or these bylaws, any action required or permitted to be taken at any meeting of the Board, or of any
committee thereof, may be taken without a meeting if all members of the Board or committee, as the case may be, consent thereto in writing
or by electronic transmission. After an action is taken, the consent or consents relating thereto shall be filed with the minutes of the
proceedings of the Board, or the committee thereof, in the same paper or electronic form as the minutes are maintained. Such action by
written consent or consent by electronic transmission shall have the same force and effect as a unanimous vote of the Board.
3.12
Fees and Compensation of Directors.
Unless otherwise restricted
by the Certificate of Incorporation or these bylaws, the Board shall have the authority to fix the compensation, including fees and reimbursement
of expenses, of directors for services to the Corporation in any capacity. No such payment shall preclude any director from serving the
Corporation in any other capacity and receiving compensation therefor. Any director may decline any or all such compensation payable to
such director in his or her discretion.
Article IV - Committees
4.1
Committees of Directors.
The Board may designate one
(1) or more committees, each committee to consist of one (1) or more of the directors of the Corporation. The Board may designate one
(1) or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of such
committee. In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not
disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board
to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution
of the Board or in these bylaws, shall have and may exercise all the powers and authority of the Board in the management of the business
and affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers that may require it; but no
such committee shall have the power or authority to (i) approve or adopt, or recommend to the stockholders, any action or matter
expressly required by the DGCL to be submitted to stockholders for approval, or (ii) adopt, amend or repeal any bylaw of the Corporation.
4.2
Committee Minutes.
Each committee shall keep
regular minutes of its meetings and report the same to the Board when required.
4.3
Meetings and Actions of Committees.
Meetings and actions of committees
shall be governed by, and held and taken in accordance with, the provisions of:
(i)
Section 3.5 (place of meetings; meetings by telephone);
(ii)
Section 3.6 (regular meetings);
(iii)
Section 3.7 (special meetings; notice);
(iv)
Section 3.9 (board action without a meeting); and
(v)
Section 7.13 (waiver of notice),
with such changes in the context of these bylaws
as are necessary to substitute the committee and its members for the Board and its members; provided, however, that:
(i)
the time of regular meetings of committees may be determined either by resolution of the Board or by resolution of the committee;
(ii)
special meetings of committees may also be called by resolution of the Board or the chairperson of the applicable committee; and
(iii)
the Board may adopt rules for the governance of any committee to override the provisions that would otherwise apply to the committee
pursuant to this Section 4.3, provided that such rules do not violate the provisions of the Certificate of Incorporation or applicable
law.
4.4
Subcommittees.
Unless otherwise provided
in the Certificate of Incorporation, these bylaws or the resolutions of the Board designating the committee, a committee may create one
(1) or more subcommittees, each subcommittee to consist of one (1) or more members of the committee, and delegate to a subcommittee any
or all of the powers and authority of the committee.
Article V - Officers
5.1
Officers.
The officers of the Corporation
shall include a Chief Executive Officer, a President and a Secretary. The Corporation may also have, at the discretion of the Board, a
Chairperson of the Board, a Vice Chairperson of the Board, a Chief Financial Officer, a Chief Operating Officer, a Treasurer, one (1)
or more Vice Presidents, one (1) or more Assistant Vice Presidents, one (1) or more Assistant Treasurers, one (1) or more Assistant Secretaries,
and any such other officers as may be appointed in accordance with the provisions of these bylaws. Any number of offices may be held by
the same person. No officer need be a stockholder or director of the Corporation. Each officer of the Corporation shall hold office for
such term as may be prescribed by the Board of Directors and until his or her successor is duly elected and qualified or until his or
her earlier death, resignation or removal.
5.2
Appointment of Officers.
The Board shall appoint the
officers of the Corporation, except such officers as may be appointed in accordance with the provisions of Section 5.3.
5.3
Subordinate Officers.
The Board may appoint, or
empower the Chief Executive Officer of the Corporation or, in the absence of a Chief Executive Officer of the Corporation, the President
of the Corporation, to appoint, such other officers and agents as the business of the Corporation may require. Each of such officers and
agents shall hold office for such period, have such authority, and perform such duties as are provided in these bylaws or as the Board
may from time to time determine.
5.4
Removal and Resignation of Officers.
Subject to the rights, if
any, of an officer under any contract of employment, any officer may be removed, either with or without cause, by the Board or, except
in the case of an officer chosen by the Board, by any officer upon whom such power of removal may be conferred by the Board.
Any officer may resign at
any time by giving written notice (email being sufficient) to the Corporation. Any resignation shall take effect at the date of the receipt
of that notice or at any later time specified in that notice. Unless otherwise specified in the notice of resignation, the acceptance
of the resignation shall not be necessary to make it effective. If a resignation is made effective at a later date and the Corporation
accepts the future effective date, the Board may fill the pending vacancy before the effective date if the Board provides that the successor
shall not take office until the effective date. Any resignation is without prejudice to the rights, if any, of the Corporation under any
contract to which the officer is a party.
5.5
Vacancies in Offices.
Any vacancy occurring in any
office of the Corporation shall be filled by the Board or as provided in Section 5.2.
5.6
Representation of Shares of Other Corporations.
The Chairperson of the Board,
the Chief Executive Officer, or the President of the Corporation, or any other person authorized by the Board, the Chief Executive Officer
or the President, is authorized to vote, represent and exercise on behalf of this Corporation all rights incident to any and all shares
or voting securities of any other corporation or other person standing in the name of this Corporation. The authority granted herein may
be exercised either by such person directly or by any other person authorized to do so by proxy or power of attorney duly executed by
such person having the authority.
5.7
Authority and Duties of Officers.
All officers of the Corporation
shall respectively have such authority and perform such duties in the management of the business of the Corporation as may be provided
herein or designated from time to time by the Board and, to the extent not so provided, as generally pertain to their respective offices,
subject to the control of the Board.
5.8
Compensation.
The compensation of the officers
of the Corporation for their services as such shall be fixed from time to time by or at the direction of the Board. An officer of the
Corporation shall not be prevented from receiving compensation by reason of the fact that he or she is also a director of the Corporation.
Article VI - Records
A stock ledger consisting
of one or more records in which the names of all of the Corporation’s stockholders of record, the address and number of shares registered
in the name of each such stockholder, and all issuances and transfers of stock of the corporation are recorded in accordance with Section
224 of the DGCL shall be administered by or on behalf of the Corporation. Any records administered by or on behalf of the Corporation
in the regular course of its business, including its stock ledger, books of account, and minute books, may be kept on, or by means of,
or be in the form of, any information storage device, or method, or one or more electronic networks or databases (including one or more
distributed electronic networks or databases), provided that the records so kept can be converted into clearly legible paper form
within a reasonable time and, with respect to the stock ledger, that the records so kept (i) can be used to prepare the list of stockholders
specified in Sections 219 and 220 of the DGCL, (ii) record the information specified in Sections 156, 159, 217(a) and 218 of the DGCL,
and (iii) record transfers of stock as governed by Article 8 of the Uniform Commercial Code as adopted in the State of Delaware.
Article VII - General
Matters
7.1
Execution of Corporate Contracts and Instruments.
The Board, except as otherwise
provided in these bylaws, may authorize any officer or officers, or agent or agents, to enter into any contract or execute any instrument
in the name of and on behalf of the Corporation; such authority may be general or confined to specific instances.
7.2
Stock Certificates.
The shares of the Corporation
shall be represented by certificates or shall be uncertificated. Certificates for the shares of stock, if any, shall be in such form as
is consistent with the Certificate of Incorporation and applicable law. Every holder of stock represented by a certificate shall be entitled
to have a certificate signed by, or in the name of the Corporation by, any two officers authorized to sign stock certificates representing
the number of shares registered in certificate form. The Chairperson or Vice Chairperson of the Board, the Chief Executive Officer, the
President, Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Corporation shall be
specifically authorized to sign stock certificates. Any or all of the signatures on the certificate may be a facsimile. In case any officer,
transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate has ceased to be such officer,
transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if he or she
were such officer, transfer agent or registrar at the date of issue.
The Corporation may issue
the whole or any part of its shares as partly paid and subject to call for the remainder of the consideration to be paid therefor. Upon
the face or back of each stock certificate issued to represent any such partly paid shares, or upon the books and records of the Corporation
in the case of uncertificated partly paid shares, the total amount of the consideration to be paid therefor and the amount paid thereon
shall be stated. Upon the declaration of any dividend on fully paid shares, the Corporation shall declare a dividend upon partly paid
shares of the same class, but only upon the basis of the percentage of the consideration actually paid thereon.
7.3
Special Designation of Certificates.
If the Corporation is authorized
to issue more than one class of stock or more than one series of any class, then the powers, the designations, the preferences and the
relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations
or restrictions of such preferences and/or rights shall be set forth in full or summarized on the face or on the back of the certificate
that the Corporation shall issue to represent such class or series of stock (or, in the case of uncertificated shares, set forth in a
notice provided pursuant to Section 151 of the DGCL); provided, however, that except as otherwise provided in Section 202 of the
DGCL, in lieu of the foregoing requirements, there may be set forth on the face of back of the certificate that the Corporation shall
issue to represent such class or series of stock (or, in the case of any uncertificated shares, included in the aforementioned notice)
a statement that the Corporation will furnish without charge to each stockholder who so requests the powers, the designations, the preferences
and the relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations
or restrictions of such preferences and/or rights.
7.4
Lost Certificates.
Except as provided in this
Section 7.4, no new certificates for shares shall be issued to replace a previously issued certificate unless the latter is surrendered
to the Corporation and cancelled at the same time. The Corporation may issue a new certificate of stock or uncertificated shares in the
place of any certificate theretofore issued by it, alleged to have been lost, stolen or destroyed, and the Corporation may require the
owner of the lost, stolen or destroyed certificate, or such owner’s legal representative, to give the Corporation a bond sufficient
to indemnify it against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate
or the issuance of such new certificate or uncertificated shares.
7.5
Shares Without Certificates
The Corporation may adopt
a system of issuance, recordation and transfer of its shares of stock by electronic or other means not involving the issuance of certificates,
provided the use of such system by the Corporation is permitted in accordance with applicable law.
7.6
Construction; Definitions.
Unless the context requires
otherwise, the general provisions, rules of construction and definitions in the DGCL shall govern the construction of these bylaws. Without
limiting the generality of this provision, the singular number includes the plural and the plural number includes the singular.
7.7
Dividends.
The Board, subject to any
restrictions contained in either (i) the DGCL or (ii) the Certificate of Incorporation, may declare and pay dividends upon the
shares of its capital stock. Dividends may be paid in cash, in property or in shares of the Corporation’s capital stock.
The Board may set apart out
of any of the funds of the Corporation available for dividends a reserve or reserves for any proper purpose and may abolish any such reserve.
Such purposes shall include but not be limited to equalizing dividends, repairing or maintaining any property of the Corporation, and
meeting contingencies.
7.8
Fiscal Year.
The fiscal year of the Corporation
shall be fixed by resolution of the Board and may be changed by the Board.
7.9
Seal.
The Corporation may adopt
a corporate seal, which shall be adopted and which may be altered by the Board. The Corporation may use the corporate seal by causing
it or a facsimile thereof to be impressed or affixed or in any other manner reproduced.
7.10
Transfer of Stock.
Shares of the stock of
the Corporation shall be transferable in the manner prescribed by law and in these bylaws. Shares of stock of the Corporation shall
be transferred on the books of the Corporation only by the holder of record thereof or by such holder’s attorney duly
authorized in writing, upon surrender to the Corporation of the certificate or certificates representing such shares endorsed by the
appropriate person or persons (or by delivery of duly executed instructions with respect to uncertificated shares), with such
evidence of the authenticity of such endorsement or execution, transfer, authorization and other matters as the Corporation may
reasonably require, and accompanied by all necessary stock transfer stamps. No transfer of stock shall be valid as against the
Corporation for any purpose until it shall have been entered in the stock records of the Corporation by an entry showing the names
of the persons from and to whom it was transferred.
7.11
Stock Transfer Agreements.
The Corporation shall have
power to enter into and perform any agreement with any number of stockholders of any one or more classes or series of stock of the Corporation
to restrict the transfer of shares of stock of the Corporation of any one or more classes owned by such stockholders in any manner not
prohibited by the DGCL.
7.12
Registered Stockholders.
The Corporation:
(i) shall be entitled to recognize
the exclusive right of a person registered on its books as the owner of shares to receive dividends and to vote as such owner; and
(ii) shall not be bound to recognize
any equitable or other claim to or interest in such share or shares on the part of another person, whether or not it shall have express
or other notice thereof, except as otherwise provided by the laws of the State of Delaware.
7.13
Waiver of Notice.
Whenever notice is required
to be given under any provision of the DGCL, the Certificate of Incorporation or these bylaws, a written waiver, signed by the person
entitled to notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time of the event
for which notice is to be given, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of
notice of such meeting, except when the person attends a meeting for the express purpose of objecting at the beginning of the meeting,
to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor
the purpose of, any regular or special meeting of the stockholders need be specified in any written waiver of notice or any waiver by
electronic transmission unless so required by the Certificate of Incorporation or these bylaws.
Article VIII - Notice
8.1
Delivery of Notice; Notice by Electronic Transmission.
Without limiting the
manner by which notice otherwise may be given effectively to stockholders, any notice to stockholders given by the Corporation under
any provisions of the DGCL, the Certificate of Incorporation, or these bylaws may be given in writing directed to the
stockholder’s mailing address (or by electronic transmission directed to the stockholder’s electronic mail address, as
applicable) as it appears on the records of the Corporation and shall be given (1) if mailed, when the notice is deposited in the
U.S. mail, postage prepaid, (2) if delivered by courier service, the earlier of when the notice is received or left at such
stockholder’s address or (3) if given by electronic mail, when directed to such stockholder’s electronic mail address
unless the stockholder has notified the Corporation in writing or by electronic transmission of an objection to receiving notice by
electronic mail. A notice by electronic mail must include a prominent legend that the communication is an important notice regarding
the Corporation.
Without limiting the manner
by which notice otherwise may be given effectively to stockholders, any notice to stockholders given by the Corporation under any provision
of the DGCL, the Certificate of Incorporation or these bylaws shall be effective if given by a form of electronic transmission consented
to by the stockholder to whom the notice is given. Any such consent shall be revocable by the stockholder by written notice or electronic
transmission to the Corporation. Notwithstanding the provisions of this paragraph, the Corporation may give a notice by electronic mail
in accordance with the first paragraph of this section without obtaining the consent
required by this paragraph.
Any
notice given pursuant to the preceding paragraph shall be deemed given:
| (i) | if
by facsimile telecommunication, when directed to a number at which the stockholder has consented
to receive notice; |
| (ii) | if
by a posting on an electronic network together with separate notice to the stockholder of
such specific posting, upon the later of (A) such posting and (B) the giving of
such separate notice; and |
| (iii) | if
by any other form of electronic transmission, when directed to the stockholder. |
Notwithstanding the foregoing,
a notice may not be given by an electronic transmission from and after the time that (1) the Corporation is unable to deliver by such
electronic transmission two (2) consecutive notices given by the Corporation and (2) such inability becomes known to the Secretary or
an Assistant Secretary of the Corporation or to the transfer agent, or other person responsible for the giving of notice; provided,
however, that the inadvertent failure to discover such inability shall not invalidate any meeting or other action.
An affidavit of the Secretary
or an Assistant Secretary of the Corporation or of the transfer agent or other agent of the Corporation that the notice has been given
shall, in the absence of fraud, be prima facie evidence of the facts stated therein.
Article IX - Indemnification
9.1
Indemnification of Directors and Officers.
The Corporation shall
indemnify and hold harmless, to the fullest extent permitted by the DGCL or any other applicable law, as it presently exists or may
hereafter be amended, any person who was or is made or is threatened to be made a party or is otherwise involved in any action, suit
or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”) by reason of the fact
that he or she, or a person for whom he or she is the legal representative, is or was a director or officer of the Corporation or,
while serving as a director or officer of the Corporation, is or was serving at the request of the Corporation as a director,
officer, employee or agent of another corporation or of a partnership, joint venture, trust, other enterprise or non-profit entity,
including service with respect to employee benefit plans (hereinafter, an “indemnitee”), whether the basis of
such proceeding is alleged action in an official capacity as director, officer, employee, or agent, or in any other capacity while
serving as director, officer, employee or agent, against all liability and loss suffered and expenses (including attorneys’
fees, judgments, fines ERISA excise taxes or penalties and amounts paid in settlement) reasonably incurred by such indemnitee in
connection with any such Proceeding; provided that such indemnitee acted in good faith and in a manner such indemnitee reasonably
believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding,
had no reasonable cause to believe such indemnitee’s conduct was unlawful. Notwithstanding the preceding sentence, except as
otherwise provided in Section 9.4, the Corporation shall be required to indemnify a person in connection with a Proceeding
initiated by such indemnitee only if the Proceeding was authorized in the specific case by the Board.
9.2
Indemnification of Others.
The Corporation shall have
the power to indemnify and hold harmless, to the fullest extent permitted by the DGCL or any other applicable law, as it presently exists
or may hereafter be amended, any employee or agent of the Corporation who was or is made or is threatened to be made a party or is otherwise
involved in any Proceeding by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was
an employee or agent of the Corporation or is or was serving at the request of the Corporation as a director, officer, employee or agent
of another corporation or of a partnership, joint venture, trust, enterprise or non-profit entity, including service with respect to employee
benefit plans, against all liability and loss suffered and expenses reasonably incurred by such person in connection with any such Proceeding.
9.3
Prepayment of Expenses.
In addition to the obligation
to indemnify conferred in Section 9.1 hereof, the Corporation shall to the fullest extent not prohibited by the DGCL or any other
applicable law pay the expenses (including attorneys’ fees) incurred by any indemnitee, and may pay the expenses incurred by any
employee or agent of the Corporation, in defending any Proceeding in advance of its final disposition; provided, however, that
such payment of expenses in advance of the final disposition of the Proceeding shall be made only upon receipt of an undertaking by or
on behalf of the person to repay all amounts advanced if it should be ultimately determined that the person is not entitled to be indemnified
under this Article IX or otherwise. Notwithstanding the preceding sentence, except as otherwise provided in Section 9.4,
the Corporation shall be required to advance expenses to a person in connection with a Proceeding initiated by such indemnitee only if
the Proceeding was authorized in the specific case by the Board.
9.4
Determination; Claim.
If a claim for indemnification
(following the final disposition of such Proceeding) under this Article IX is not paid in full within sixty (60) days, or a claim
for advancement of expenses under this Article IX is not paid in full within thirty (30) days, after a written claim therefor has
been received by the Corporation the indemnitee may thereafter (but not before) file suit to recover the unpaid amount of such claim and,
if successful in whole or in part, shall be entitled to be paid the expense of prosecuting such claim to the fullest extent permitted
by law. In any such action the Corporation shall have the burden of proving that the claimant was not entitled to the requested indemnification
or payment of expenses under applicable law.
9.5
Non-Exclusivity of Rights.
The rights to indemnification
and advancement of expenses conferred on any person by this Article IX shall not be exclusive of any other rights which such person
may have or hereafter acquire under law, the Certificate of Incorporation, these bylaws, an agreement, vote of stockholders or disinterested
directors, or otherwise.
9.6
Insurance.
The Corporation may purchase
and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the Corporation, or is or was serving
at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust
enterprise or non-profit entity against any liability asserted against him or her and incurred by him or her in any such capacity, or
arising out of his or her status as such, whether or not the Corporation would have the power to indemnify him or her against such liability
under the provisions of the DGCL.
9.7
Other Indemnification.
The Corporation’s obligation,
if any, to indemnify or advance expenses to any person who was or is serving at its request as a director, officer, employee or agent
of another corporation, partnership, joint venture, trust, enterprise or non-profit entity shall be reduced by any amount such person
may collect as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, enterprise or
non-profit enterprise.
9.8
Continuation of Indemnification.
The rights to indemnification
and to prepayment of expenses conferred by this Article IX shall be contract rights and shall continue notwithstanding that the
person has ceased to be a director or officer of the Corporation and shall inure to the benefit of his or her heirs, executors, administrators,
legatees and distributees.
9.9
Amendment or Repeal; Interpretation.
The provisions of this Article
IX shall constitute a contract between the Corporation, on the one hand, and, on the other hand, each individual who serves or has
served as a director or officer of the Corporation (whether before or after the adoption of these bylaws), in consideration of such person’s
performance of such services, and pursuant to this Article IX the Corporation intends to be legally bound to each such current
or former director or officer of the Corporation. With respect to current and former directors and officers of the Corporation, the rights
conferred under this Article IX are present contractual rights and such rights are fully vested, and shall be deemed to have vested
fully, immediately upon adoption of theses bylaws. With respect to any directors or officers of the Corporation who commence service following
adoption of these bylaws, the rights conferred under this provision shall be present contractual rights and such rights shall fully vest,
and be deemed to have vested fully, immediately upon such director or officer commencing service as a director or officer of the Corporation.
Any repeal or modification of the foregoing provisions of this Article IX shall be prospective only (except to the extent such
amendment or change in law permits the Corporation to provide broader indemnification rights on a retroactive basis than permitted prior
thereto), and shall not in any way diminish or adversely affect any right or protection (i) hereunder of any person in respect of any
act or omission occurring prior to the time of such repeal or amendment or (ii) under any agreement providing for indemnification or advancement
of expenses to an officer or director of the Corporation in effect prior to the time of such repeal or modification.
Any reference to an
officer of the Corporation in this Article IX shall be deemed to refer exclusively to the Chief Executive Officer, the
President and the Secretary of the Corporation, or other officer of the Corporation appointed by (x) the Board pursuant to Article
V or (y) an officer to whom the Board has delegated the power to appoint officers pursuant to Article V, and any
reference to an officer of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall
be deemed to refer exclusively to an officer appointed by the board of directors (or equivalent governing body) of such other entity
pursuant to the certificate of incorporation and bylaws (or equivalent organizational documents) of such other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise. The fact that any person who is or was an employee of
the Corporation or an employee of any other corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise has been given or has used the title of “Vice President” or any other title that could be construed to
suggest or imply that such person is or may be an officer of the Corporation or of such other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise shall not result in such person being constituted as, or being deemed to
be, an officer of the Corporation or of such other corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise for purposes of this Article IX.
Article X - Amendments
The Board is expressly empowered
to adopt, amend or repeal the bylaws of the Corporation. The stockholders also shall have power to adopt, amend or repeal the bylaws of
the Corporation; provided, however, that such action by stockholders shall require, in addition to any other vote required by the
Certificate of Incorporation or applicable law, the affirmative vote of the holders of at least two-thirds (66 and 2/3%) of the voting
power of all the then-outstanding shares of voting stock of the Corporation with the power to vote generally in an election of directors,
voting together as a single class.
Article XI - Definitions
As used in these bylaws, unless
the context otherwise requires, the following terms shall have the following meanings:
An “electronic transmission”
means any form of communication, not directly involving the physical transmission of paper, including the use of, or participation in,
one or more electronic networks or databases (including one or more distributed electronic networks or databases), that creates a record
that may be retained, retrieved and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient
through an automated process.
An “electronic mail”
means an electronic transmission directed to a unique electronic mail address (which electronic mail shall be deemed to include any files
attached thereto and any information hyperlinked to a website if such electronic mail includes the contact information of an officer or
agent of the Corporation who is available to assist with accessing such files and information).
An “electronic mail
address” means a destination, commonly expressed as a string of characters, consisting of a unique user name or mailbox (commonly
referred to as the “local part” of the address) and a reference to an internet domain (commonly referred to as the “domain
part” of the address), whether or not displayed, to which electronic mail can be sent or delivered.
The term “person”
means any individual, general partnership, limited partnership, limited liability company, corporation, trust, business trust, joint stock
company, joint venture, unincorporated association, cooperative or association or any other legal entity or organization of whatever nature,
and shall include any successor (by merger or otherwise) of such entity.
Exhibit 10.6
AMENDED AND RESTATED
REGISTRATION RIGHTS AGREEMENT
THIS AMENDED AND RESTATED
REGISTRATION RIGHTS AGREEMENT (this “Agreement”),
dated as of December 19, 2023, is made and entered into by and among Infrared Cameras Holdings, Inc., a Delaware corporation (the “Company”)
(formerly known as SportsMap Tech Acquisition Corp, a Delaware corporation) (the “Acquirer”)), SportsMap, LLC,
a Delaware limited liability company (the “Sponsor”),
the members of the Sponsor identified on the signature pages hereto (such members, the “Sponsor Members”), certain
former stock and option holders of Infrared Cameras Holdings, Inc., a Delaware corporation (“ICI”)
identified on the signature pages hereto (such holders, the “ICI
Holders” and, collectively with the Sponsor, the Sponsor Members, and any person or entity who hereafter becomes
a party to this Agreement pursuant to Section 5.2 or Section 5.10 of this Agreement, the “Holders”
and each, a “Holder”).
RECITALS
WHEREAS, the Company,
the Sponsor and certain Sponsor Members are party to that certain Registration Rights Agreement, dated as of October 18, 2021 (the “Original
RRA”);
WHEREAS, the Company
has entered into that certain Business Combination Agreement, dated as of December 5, 2022, (as it may be amended or supplemented from
time to time, the “Merger Agreement”), by and
among the Company, ICH Merger Sub Inc. and ICI;
WHEREAS, on the date
hereof, pursuant to the Merger Agreement, the ICI Holders will receive shares of common stock, par value $0.001 per share (the “Common
Stock”), of the Company;
WHEREAS, pursuant to
Section 5.5 of the Original RRA, the provisions, covenants and conditions set forth therein may be amended or modified upon the written
consent of the Company and the Holders (as defined in the Original RRA) of at least a majority-in-interest of the Registrable Securities
(as defined in the Original RRA) at the time in question, and the Sponsor is the Holder of at least a majority-in-interest of the Registrable
Securities as of the date hereof; and
WHEREAS, the Company
and the Sponsor desire to amend and restate the Original RRA in its entirety and enter into this Agreement, pursuant to which the Company
shall grant the Holders certain registration rights with respect to certain securities of the Company, as set forth in this Agreement.
NOW, THEREFORE,
in consideration of the representations, covenants and agreements contained herein, and certain other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
ARTICLE
I
DEFINITIONS
1.1
Definitions. The terms defined in this Article I shall, for all purposes of this Agreement, have the respective
meanings set forth below:
“Additional
Holder” shall have the meaning given in Section 5.10.
“Additional
Holder Common Stock” shall have the meaning given in Section 5.10.
“Adverse
Disclosure” shall mean any public disclosure of material non-public information, which disclosure, in the good faith
judgment of the Chief Executive Officer or the Chief Financial Officer of the Company, after consultation with counsel to the Company,
(i) would be required to be made in any Registration Statement or Prospectus in order for the applicable Registration Statement or
Prospectus not to contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained
therein (in the case of any prospectus and any preliminary prospectus, in the light of the circumstances under which they were made) not
misleading, (ii) would not be required to be made at such time if the Registration Statement were not being filed, declared effective
or used, as the case may be, and (iii) the Company has a bona fide business purpose for not making such information public.
“Agreement”
shall have the meaning given in the Preamble hereto.
“Block
Trade” shall have the meaning given in Section 2.4.1.
“Board”
shall mean the Board of Directors of the Company.
“Closing”
shall have the meaning given in the Merger Agreement.
“Closing
Date” shall have the meaning given in the Merger Agreement.
“Commission”
shall mean the Securities and Exchange Commission.
“Common
Stock” shall have the meaning given in the Recitals hereto.
“Company”
shall have the meaning given in the Preamble hereto and includes the Company’s successors by recapitalization, merger, consolidation,
spin-off, reorganization or similar transaction.
“Demanding
Holder” shall have the meaning given in Section 2.1.4.
“Earnout
Shares” shall have the meaning given in the Merger Agreement.
“Exchange
Act” shall mean the Securities Exchange Act of 1934, as it may be amended from time to time.
“Form
S-1 Shelf” shall have the meaning given in Section 2.1.1.
“Form
S-3 Shelf” shall have the meaning given in Section 2.1.1.
“Holder
Information” shall have the meaning given in Section 4.1.2.
“Holders”
shall have the meaning given in the Preamble hereto, for so long as such person or entity holds any Registrable Securities.
“ICI”
shall have the meaning given in the Preamble hereto.
“ICI
Holders” shall have the meaning given in the Preamble hereto.
“Joinder”
shall have the meaning given in Section 5.10.
“Lock-Up Agreement”
shall have the meaning given in the Merger Agreement.
“Lock-up Period”
shall mean the Lock-up Period as defined in the Lock-Up Agreement .
“Maximum
Number of Securities” shall have the meaning given in Section 2.1.5.
“Merger
Agreement” shall have the meaning given in the Recitals hereto.
“Minimum
Takedown Threshold” shall have the meaning given in Section 2.1.4.
“Misstatement”
shall mean an untrue statement of a material fact or an omission to state a material fact required to be stated in a Registration Statement
or Prospectus or necessary to make the statements in a Registration Statement or Prospectus (in the case of a Prospectus, in the light
of the circumstances under which they were made) not misleading.
“Original
RRA” shall have the meaning given in the Recitals hereto.
“Other Coordinated
Offering” shall have the meaning given in Section 2.4.1.
“Permitted
Transferees” shall mean (a) with respect to the Sponsor, the ICI Holders and each of their respective Permitted Transferees,
(i) prior to the expiration of the Lock-up Period, any person or entity to whom such Holder is permitted to transfer such Registrable
Securities prior to the expiration of the Lock-up Period pursuant to the Lock-Up Agreement and (ii) after the expiration of the Lock-up
Period, any person or entity to whom such Holder is permitted to transfer such Registrable Securities, subject to and in accordance with
any applicable agreement between such Holder and/or their respective Permitted Transferees and the Company and any transferee thereafter;
and (b) with respect to all other Holders and their respective Permitted Transferees, any person or entity to whom such Holder of Registrable
Securities is permitted to transfer such Registrable Securities, subject to and in accordance with any applicable agreement between such
Holder and/or their respective Permitted Transferees and the Company and any transferee thereafter.
“Piggyback
Registration” shall have the meaning given in Section 2.2.1.
“Prospectus”
shall mean the prospectus included in any Registration Statement, as supplemented by any and all prospectus supplements and as amended
by any and all post-effective amendments and including all material incorporated by reference in such prospectus.
“Registrable
Security” shall mean (a) any outstanding shares of Common Stock or any other equity security (including warrants
to purchase shares of Common Stock and shares of Common Stock issued or issuable upon the exercise of any other equity security) of the
Company held by a Holder immediately following the Closing (including any securities distributable pursuant to the Merger Agreement);
(b) any outstanding shares of Common Stock or any other equity security (including warrants to purchase shares of Common Stock and shares
of Common Stock issued or issuable upon the exercise of any other equity security) of the Company acquired by a Holder following the date
hereof to the extent that such securities are “restricted securities” (as defined in Rule 144) or are otherwise held by an
“affiliate” (as defined in Rule 144) of the Company; (c) any Additional Holder Common Stock; (d) any Earnout Shares (as
defined in the Merger Agreement) and (e) any other equity security of the Company or any of its subsidiaries issued or issuable with respect
to any securities referenced in clause (a), (b), (c) or (d) above by way of a stock dividend or stock split or in connection with
a recapitalization, merger, consolidation, spin-off, reorganization, exchange, or similar transaction; provided, however,
that, as to any particular Registrable Security, such securities shall cease to be Registrable Securities upon the earliest to occur of:
(A) a Registration Statement with respect to the sale of such securities shall have become effective under the Securities Act and
such securities shall have been sold, transferred, disposed of or exchanged in accordance with such Registration Statement by the applicable
Holder; (B) (i) such securities shall have been otherwise transferred, (ii) new certificates for such securities not bearing (or
book entry positions not subject to) a legend restricting further transfer shall have been delivered by the Company and (iii) subsequent
public distribution of such securities shall not require registration under the Securities Act; (C) such securities shall have ceased
to be outstanding; (D) such securities may be sold without registration pursuant to Rule 144 or any successor rule promulgated under
the Securities Act (but with no volume or manner or timing of sale imposed on Holder pursuant to Rule 144(b)(2)); and (E) such securities
have been sold to, or through, a broker, dealer or underwriter in a public distribution or other public securities transaction.
“Registration”
shall mean a registration, including any related Shelf Takedown, effected by preparing and filing a registration statement, Prospectus
or similar document in compliance with the requirements of the Securities Act, and the applicable rules and regulations promulgated thereunder,
and such registration statement becoming effective.
“Registration
Expenses” shall mean the documented, out-of-pocket expenses of a Registration, including, without limitation, the
following:
(A)
all registration and filing fees (including fees with respect to filings required to be made with the Financial Industry Regulatory
Authority, Inc.) and any national securities exchange on which the Common Stock is then listed;
(B)
fees and expenses of compliance with securities or blue sky laws (including reasonable fees and disbursements of outside counsel
for the Underwriters in connection with blue sky qualifications of Registrable Securities);
(C)
printing, messenger, telephone and delivery expenses;
(D)
reasonable fees and disbursements of counsel for the Company;
(E)
reasonable fees and disbursements of all independent registered public accountants of the Company incurred specifically in connection
with such Registration; and
(F)
in an Underwritten Offering or Other Coordinated Offering, reasonable fees and expenses not to exceed $40,000 in the aggregate
for each Registration of one (1) legal counsel selected by the majority-in-interest of the Demanding Holders with the approval of the
Company, which approval shall not be unreasonably withheld.
“Registration
Statement” shall mean any registration statement that covers Registrable Securities pursuant to the provisions of
this Agreement, including the Prospectus included in such registration statement, amendments (including post-effective amendments) and
supplements to such registration statement, and all exhibits to and all material incorporated by reference in such registration statement.
“Securities
Act” shall mean the Securities Act of 1933, as amended from time to time.
“Shelf”
shall mean the Form S-1 Shelf, the Form S-3 Shelf or any Subsequent Shelf Registration Statement, as the case may be.
“Shelf
Registration” shall mean a registration of securities pursuant to a registration statement filed with the Commission
in accordance with and pursuant to Rule 415 promulgated under the Securities Act (or any successor rule then in effect).
“Shelf
Takedown” shall mean an Underwritten Shelf Takedown or any proposed transfer or sale using a Registration Statement,
including a Piggyback Registration.
“Sponsor”
shall have the meaning given in the Preamble hereto.
“Sponsor Majority
Holders” shall mean the Sponsor Member or Sponsor Members holding in the aggregate a majority of the Registrable Securities
then held by all of the Sponsor Members.
“Sponsor
Members” shall have the meaning given in the Preamble hereto.
“Sponsor Support
Agreement” means that certain Sponsor Support Agreement, dated as of December 5, 2022, by and among the Sponsor, the Acquirer
and ICI.
“Subsequent
Shelf Registration Statement” shall have the meaning given in Section 2.1.2.
“Transfer”
shall mean the (a) sale or assignment of, offer to sell, contract or agreement to sell, hypothecate, pledge, grant of any option to
purchase or otherwise dispose of or agreement to dispose of, directly or indirectly, or establishment or increase of a put
equivalent position or liquidation with respect to or decrease of a call equivalent position within the meaning of Section 16 of the
Exchange Act with respect to, any security, (b) entry into any swap or other arrangement that transfers to another, in whole or in
part, any of the economic consequences of ownership of any security, whether any such transaction is to be settled by delivery of
such securities, in cash or otherwise, or (c) public announcement of any intention to effect any transaction specified in
clause (a) or (b).
“Underwriter”
shall mean a securities dealer who purchases any Registrable Securities as principal in an Underwritten Offering and not as part of such
dealer’s market-making activities.
“Underwritten
Offering” shall mean a Registration in which securities of the Company are sold to an Underwriter in a firm commitment
underwriting for distribution to the public.
“Underwritten
Shelf Takedown” shall have the meaning given in Section 2.1.4.
“Withdrawal
Notice” shall have the meaning given in Section 2.1.6.
ARTICLE
II
REGISTRATIONS AND OFFERINGS
2.1
Shelf Registration.
2.1.1
Filing. Within thirty (30) calendar days following the Closing Date, the Company shall submit to or file with the Commission
a Registration Statement for a Shelf Registration on Form S-1 (the “Form S-1 Shelf”) or a Registration Statement
for a Shelf Registration on Form S-3 (the “Form S-3 Shelf”), if the Company is then eligible to use a Form S-3
Shelf, in each case, covering the resale of all the Registrable Securities (determined as of two (2) business days prior to such submission
or filing) on a delayed or continuous basis and shall use its commercially reasonable efforts to have such Shelf declared effective as
soon as practicable after the filing thereof, but no later than the earlier of (a) the ninetieth (90th) calendar day following
the filing date thereof if the Commission notifies the Company that it will “review” the Registration Statement and (b) the
tenth (10th) business day after the date the Company is notified (orally or in writing, whichever is earlier) by the Commission
that the Registration Statement will not be “reviewed” or will not be subject to further review. Such Shelf shall provide
for the resale of the Registrable Securities included therein pursuant to any method or combination of methods legally available to, and
requested by, any Holder named therein. The Company shall maintain a Shelf in accordance with the terms hereof, and shall prepare and
file with the Commission such amendments, including post-effective amendments, and supplements as may be necessary to keep a Shelf continuously
effective, available for use to permit the Holders named therein to sell their Registrable Securities included therein and in compliance
with the provisions of the Securities Act until such time as there are no longer any Registrable Securities. In the event the Company
files a Form S-1 Shelf, the Company shall use its commercially reasonable efforts to convert the Form S-1 Shelf (and any Subsequent Shelf
Registration Statement) to a Form S-3 Shelf as soon as practicable after the Company is eligible to use Form S-3. The Company’s
obligation under this Section 2.1.1, shall, for the avoidance of doubt, be subject to Section 3.4.
2.1.2 Subsequent
Shelf Registration. If any Shelf ceases to be effective under the Securities Act for any reason at any time while Registrable
Securities are still outstanding, the Company shall, subject to Section 3.4, use its commercially reasonable efforts to
as promptly as is reasonably practicable cause such Shelf to again become effective under the Securities Act (including using its
commercially reasonable efforts to obtain the prompt withdrawal of any order suspending the effectiveness of such Shelf), and shall
use its commercially reasonable efforts to as promptly as is reasonably practicable amend such Shelf in a manner reasonably expected
to result in the withdrawal of any order suspending the effectiveness of such Shelf or file an additional registration statement as
a Shelf Registration (a “Subsequent Shelf
Registration Statement”) registering the resale of all Registrable Securities (determined as of two (2)
business days prior to such filing), and pursuant to any method or combination of methods legally available to, and requested by,
any Holder named therein. If a Subsequent Shelf Registration Statement is filed, the Company shall use its commercially reasonable
efforts to (i) cause such Subsequent Shelf Registration Statement to become effective under the Securities Act as promptly as is
reasonably practicable after the filing thereof (it being agreed that the Subsequent Shelf Registration Statement shall be an
automatic shelf registration statement (as defined in Rule 405 promulgated under the Securities Act) if the Company is a well-known
seasoned issuer (as defined in Rule 405 promulgated under the Securities Act) at the most recent applicable eligibility
determination date) and (ii) keep such Subsequent Shelf Registration Statement continuously effective, available for use to
permit the Holders named therein to sell their Registrable Securities included therein and in compliance with the provisions of the
Securities Act until such time as there are no longer any Registrable Securities. Any such Subsequent Shelf Registration Statement
shall be on Form S-3 to the extent that the Company is eligible to use such form. Otherwise, such Subsequent Shelf Registration
Statement shall be on another appropriate form. The Company’s obligation under this Section 2.1.2, shall, for the
avoidance of doubt, be subject to Section 3.4.
2.1.3
Additional Registrable Securities. Subject to Section 3.4, in the event that any Holder holds Registrable Securities
that are not registered for resale on a delayed or continuous basis, the Company, upon written request of the Sponsor Majority Holders
or an ICI Holder, shall promptly use its commercially reasonable efforts to cause the resale of such Registrable Securities to be covered
by either, at the Company’s option, any then available Shelf (including by means of a post-effective amendment) or by filing a Subsequent
Shelf Registration Statement and cause the same to become effective as soon as practicable after such filing and such Shelf or Subsequent
Shelf Registration Statement shall be subject to the terms hereof; provided, however, that the Company shall only be required
to cause such Registrable Securities to be so covered twice per calendar year for each of the Sponsor Majority Holders and the ICI Holders.
2.1.4 Requests
for Underwritten Shelf Takedowns. Subject to Section 3.4, at any time and from time to time when an effective Shelf is on
file with the Commission, the Sponsor Majority Holders or an ICI Holder (any of the Sponsor Majority Holders or an ICI Holder being
in such case, a “Demanding
Holder”) may request to sell all or any portion of its Registrable Securities in an Underwritten Offering that
is registered pursuant to the Shelf (each, an “Underwritten
Shelf Takedown”); provided that the Company shall only be obligated to effect an Underwritten Shelf
Takedown if such offering shall include Registrable Securities proposed to be sold by the Demanding Holder, either individually or
together with other Demanding Holders, with an anticipated aggregate offering price, net of underwriting discounts and commissions,
of at least $25 million (the “Minimum
Takedown Threshold”). All requests for Underwritten Shelf Takedowns shall be made by giving written notice to
the Company, which shall specify the approximate number of Registrable Securities proposed to be sold in the Underwritten Shelf
Takedown. Subject to Section 2.4.4, the Company shall have the right to select the Underwriters for such offering (which
shall consist of one or more reputable nationally recognized investment banks), subject to the initial Demanding Holder’s
prior approval (which shall not be unreasonably withheld, conditioned or delayed). The Sponsor Majority Holders may collectively
demand not more than one (1) Underwritten Shelf Takedown and the ICI Holders may collectively demand not more than three (3)
Underwritten Shelf Takedowns, in each case, pursuant to this Section 2.1.4 in any twelve (12) month period.
Notwithstanding anything to the contrary in this Agreement, the Company may effect any Underwritten Offering pursuant to any then
effective Registration Statement, including a Form S-3, that is then available for such offering.
2.1.5
Reduction of Underwritten Offering. If the underwriter in an Underwritten Shelf Takedown advises the Demanding Holders in
writing that marketing factors require a limitation of the number of shares to be underwritten, then the Demanding Holders shall so advise
all Holders of Registrable Securities that would otherwise be underwritten pursuant hereto, and the number of shares of Registrable Securities
that may be included in the underwriting (such maximum number of such securities, the “Maximum Number of Securities”)
shall be allocated among all participating Holders thereof, including the Demanding Holders, in proportion (as nearly as practicable)
to the amount of Registrable Securities of the Company owned by each participating Holder; provided, however, that the number
of shares of Registrable Securities to be included in such underwriting shall not be reduced unless all other securities are first entirely
excluded from the underwriting.
2.1.6 Withdrawal.
Prior to the filing of the applicable “red herring” prospectus or prospectus supplement used for marketing such
Underwritten Shelf Takedown, a majority-in-interest of the Demanding Holders initiating an Underwritten Shelf Takedown shall have
the right to withdraw from such Underwritten Shelf Takedown for any or no reason whatsoever upon written notification (a
“Withdrawal Notice”) to
the Company and the Underwriter or Underwriters (if any) of their intention to withdraw from such Underwritten Shelf Takedown; provided
that the Sponsor Majority Holders or the ICI Holders may elect to have the Company continue an Underwritten Shelf Takedown if the
Minimum Takedown Threshold would still be satisfied by the Registrable Securities proposed to be sold in the Underwritten Shelf
Takedown by the Sponsor Majority Holders the ICI Holders or any of their respective Permitted Transferees, as applicable. If
withdrawn, a demand for an Underwritten Shelf Takedown shall constitute a demand for an Underwritten Shelf Takedown by the
withdrawing Demanding Holder for purposes of Section 2.1.4, unless either (i) such Demanding Holder has not
previously withdrawn any Underwritten Shelf Takedown or (ii) such Demanding Holder reimburses the Company for all Registration
Expenses with respect to such Underwritten Shelf Takedown (or, if there is more than one Demanding Holder, a pro rata portion of
such Registration Expenses based on the respective number of Registrable Securities that each Demanding Holder has requested be
included in such Underwritten Shelf Takedown); provided that, if the Sponsor Majority Holders or the ICI Holders elect to
continue an Underwritten Shelf Takedown pursuant to the proviso in the immediately preceding sentence, such Underwritten Shelf
Takedown shall instead count as an Underwritten Shelf Takedown demanded by the Sponsor Majority Holders, the ICI Holders, as
applicable, for purposes of Section 2.1.4. Following the receipt of any Withdrawal Notice, the Company shall promptly
forward such Withdrawal Notice to any other Holders that had elected to participate in such Shelf Takedown. Notwithstanding anything
to the contrary in this Agreement, the Company shall be responsible for the Registration Expenses incurred in connection with a
Shelf Takedown prior to its withdrawal under this Section 2.1.6, other than if a Demanding Holder elects to pay such
Registration Expenses pursuant to clause (ii) of the second sentence of this Section 2.1.6.
2.1.7
New Registration Statement. Notwithstanding the registration obligations set forth in this Section 2.1, in the event the
Commission informs the Company that all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered
for resale as a secondary offering on a single registration statement, the Company agrees to promptly (i) inform each of the holders thereof
and use its commercially reasonable efforts to file amendments to the Shelf Registration as required by the Commission and/or (ii) withdraw
the Shelf Registration and file a new registration statement (a “New Registration Statement”), on Form S-3,
or if Form S-3 is not then available to the Company for such registration statement, on such other form available to register for resale
the Registrable Securities as a secondary offering; provided, however, that prior to filing such amendment or New Registration Statement,
the Company shall use its commercially reasonable efforts to advocate with the Commission for the registration of all of the Registrable
Securities in accordance with any publicly-available written or oral guidance, comments, requirements or requests of the Commission staff
(the “SEC Guidance”). Notwithstanding any other provision of this Agreement, if any SEC Guidance sets forth
a limitation of the number of Registrable Securities permitted to be registered on a particular Registration Statement as a secondary
offering (and notwithstanding that the Company used commercially reasonable efforts to advocate with the Commission for the registration
of all or a greater number of Registrable Securities), unless otherwise directed in writing by a Holder as to its Registrable Securities
to register a lesser amount of Registrable Securities, the number of Registrable Securities to be registered on such Registration Statement
will be reduced on a pro rata basis based on the total number of Registrable Securities held by the Holders. In the event the Company
amends the Shelf Registration or files a New Registration Statement, as the case may be, under clauses (i) or (ii) above, the Company
will use its commercially reasonable efforts to file with the Commission, as promptly as allowed by Commission or SEC Guidance provided
to the Company or to registrants of securities in general, one or more registration statements on Form S-3 or such other form available
to register for resale those Registrable Securities that were not registered for resale on the Shelf Registration, as amended, or the
New Registration Statement.
2.2
Piggyback Registration.
2.2.1 Piggyback
Rights. If (but without any obligation to do so) the Company proposes to register (including for this purpose a registration
effected by the Company for holders of capital stock other than the Holders), or a Demanding Holder in accordance with Section 2.1.4
proposes to conduct a registered offer of, or conduct a registered offering of, any of its stock under the Securities Act in
connection with the public offering of such securities solely for cash (other than a registration relating solely to the sale of
securities to participants in a Company stock plan or a transaction covered by Rule 145 under the Securities Act, a registration in
which the only stock being registered is Common Stock issuable upon conversion of debt securities which are also being registered,
or any registration on any form which does not include substantially the same information as would be required to be included in a
registration statement covering the sale of the Registrable Securities), then the Company shall give written notice of such proposed
offering to all of the Holders of Registrable Securities as soon as practicable but not less than ten (10) days before the
anticipated filing date of such Registration Statement or, in the case of an Underwritten Offering pursuant to a Shelf Registration,
the applicable “red herring” prospectus or prospectus supplement used for marketing such offering, which notice shall
(A) describe the amount and type of securities to be included in such offering, the intended method(s) of distribution, and the
name of the proposed managing Underwriter or Underwriters, if any, in such offering, and (B) offer to all of the Holders of
Registrable Securities the opportunity to include in such registered offering such number of Registrable Securities as such Holders
may request in writing within five (5) days after receipt of such written notice (such registered offering, a “Piggyback
Registration”). Subject to Section 2.2.2, the Company shall, in good faith, cause such Registrable
Securities to be included in such Piggyback Registration and, if applicable, shall use its commercially reasonable efforts to cause
the managing Underwriter or Underwriters of such Piggyback Registration to permit the Registrable Securities requested by the
Holders pursuant to this Section 2.2.1 to be included therein on the same terms and conditions as any similar securities
of the Company included in such registered offering and to permit the sale or other disposition of such Registrable Securities in
accordance with the intended method(s) of distribution thereof. The inclusion of any Holder’s Registrable Securities in a
Piggyback Registration shall be subject to such Holder agreement to enter into an underwriting agreement in customary form with the
Underwriter(s) selected for such Underwritten Offering. Notwithstanding anything to the contrary, the Holders shall have no rights
under this Section 2.2.1 if the registration statement the Company proposes to file is solely for purposes of a delayed or
continuous offering pursuant to Rule 415 under the Securities Act and, at the time of the filing of such registration statement, the
Company is in compliance with its obligations under Section 2.1.
2.2.2
Reduction of Piggyback Registration. If the total amount of securities, including Registrable Securities, requested by holders
of Registrable Securities to be included in such offering exceeds the amount of securities sold other than by the Company that the underwriters
determine in their sole discretion is compatible with the success of the offering, then the Company shall be required to include in the
offering only that number of such securities, including Registrable Securities, which the underwriters determine in their sole discretion
will not jeopardize the success of the offering (the securities so included to be apportioned pro rata among the selling security holders
according to the total amount of securities entitled to be included therein owned by each selling security holder or in such other proportions
as shall mutually be agreed to by such selling security holders). For purposes of the preceding parenthetical concerning apportionment,
for any selling security holder which is a holder of Registrable Securities and which is a partnership or corporation, the partners, retired
partners and holders of capital stock of such holder, or the estates and family members of any such partners and retired partners and
any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling security holder,” and any
pro-rata reduction with respect to such “selling security holder” shall be based upon the aggregate amount of shares carrying
registration rights owned by all entities and individuals included in such “selling security holder,” as defined in this sentence.
2.2.3 Piggyback
Registration Withdrawal. Any Holder of Registrable Securities (other than a Demanding Holder, whose right to withdraw from an
Underwritten Shelf Takedown, and related obligations, shall be governed by Section 2.1.6) shall have the right to
withdraw from a Piggyback Registration for any or no reason whatsoever upon written notification to the Company and the Underwriter
or Underwriters (if any) of his, her or its intention to withdraw from such Piggyback Registration prior to the effectiveness of the
Registration Statement filed with the Commission with respect to such Piggyback Registration or, in the case of a Piggyback
Registration pursuant to a Shelf Registration, the filing of the applicable “red herring” prospectus or prospectus
supplement with respect to such Piggyback Registration used for marketing such transaction. The Company (whether on its own good
faith determination or as the result of a request for withdrawal by persons or entities pursuant to separate written contractual
obligations) may withdraw a Registration Statement filed with the Commission in connection with a Piggyback Registration (which, in
no circumstance, shall include a Shelf) at any time prior to the effectiveness of such Registration Statement. Notwithstanding
anything to the contrary in this Agreement (other than Section 2.1.6), the Company shall be responsible for the
Registration Expenses incurred in connection with the Piggyback Registration prior to its withdrawal under this Section 2.2.3.
2.2.4
Unlimited Piggyback Registration Rights. For purposes of clarity, subject to Section 2.1.6, any Piggyback Registration
effected pursuant to Section 2.2 hereof shall not be counted as a demand for an Underwritten Shelf Takedown under Section 2.1.4
hereof.
2.3
Market Stand-off. In connection with any Underwritten Offering of equity securities of the Company (other than a Block Trade
or Other Coordinated Offering), if requested by the managing Underwriters, each Holder that is an executive officer, director or Holder
in excess of five percent (5%) of the outstanding Common Stock (and for which it is customary for such a Holder to agree to a lock-up)
agrees that it shall not Transfer any shares of Common Stock or other equity securities of the Company (other than those included in such
offering pursuant to this Agreement), without the prior written consent of the Company, during the ninety (90)-day period (or such shorter
time agreed to by the managing Underwriters) beginning on the date of pricing of such offering, except as expressly permitted by such
lock-up agreement or in the event the managing Underwriters otherwise agree by written consent. Each such Holder agrees to execute a customary
lock-up agreement in favor of the Underwriters to such effect (in each case on substantially the same terms and conditions as all such
Holders).
2.4
Block Trades; Other Coordinated Offerings.
2.4.1
Notwithstanding any other provision of this Article II, but subject to Section 3.4, at any time and from time to
time when an effective Shelf is on file with the Commission, if a Demanding Holder wishes to engage in (a) an underwritten registered
offering not involving a “roadshow,” an offer commonly known as a “block trade” (a “Block
Trade”) or (b) an “at the market” or similar registered offering through a broker, sales agent or distribution
agent, whether as agent or principal, (an “Other Coordinated Offering”), in each case, with an anticipated aggregate
offering price of, either (x) at least $25 million or (y) all remaining Registrable Securities held by the Demanding Holder, then
such Demanding Holder only needs to notify the Company of the Block Trade or Other Coordinated Offering at least five (5) business days
prior to the day such offering is to commence and the Company shall as expeditiously as possible use its commercially reasonable efforts
to facilitate such Block Trade or Other Coordinated Offering; provided that the Demanding Holders representing a majority of the
Registrable Securities wishing to engage in the Block Trade or Other Coordinated Offering shall use commercially reasonable efforts to
work with the Company and any Underwriters, brokers, sales agents or placement agents prior to making such request in order to facilitate
preparation of the registration statement, prospectus and other offering documentation related to the Block Trade or Other Coordinated
Offering.
2.4.2
Prior to the filing of the applicable “red herring” prospectus or prospectus supplement used in connection with a
Block Trade or Other Coordinated Offering, a majority-in-interest of the Demanding Holders initiating such Block Trade or Other Coordinated
Offering shall have the right to submit a Withdrawal Notice to the Company, the Underwriter or Underwriters (if any) and any brokers,
sale agents or placement agents (if any) of their intention to withdraw from such Block Trade or Other Coordinated Offering. Notwithstanding
anything to the contrary in this Agreement, the Company shall be responsible for the Registration Expenses incurred in connection with
a Block Trade or Other Coordinated Offering prior to its withdrawal under this Section 2.4.2.
2.4.3
Notwithstanding anything to the contrary in this Agreement, Section 2.2 shall not apply to a Block Trade or Other Coordinated
Offering initiated by a Demanding Holder pursuant to this Agreement.
2.4.4
The Demanding Holder in a Block Trade or Other Coordinated Offering shall have the right to select the Underwriters and any brokers,
sale agents or placement agents (if any) for such Block Trade or Other Coordinated Offering (in each case, which shall consist of one
or more reputable nationally recognized investment banks).
2.4.5
A Holder in the aggregate may demand no more than two (2) Block Trades or Other Coordinated Offerings pursuant to this Section
2.4 in any twelve (12) month period. For the avoidance of doubt, any Block Trade or Other Coordinated Offering effected pursuant to
this Section 2.4 shall not be counted as a demand for an Underwritten Shelf Takedown pursuant to Section 2.1.4 hereof.
ARTICLE
III
COMPANY PROCEDURES
3.1
General Procedures. In connection with any Shelf and/or Shelf Takedown, the Company shall use its reasonable best efforts
to effect such Registration to permit the sale of such Registrable Securities in accordance with the intended plan of distribution thereof
(and including all manners of distribution in such Registration Statement as Holders may reasonably request in connection with the filing
of such Registration Statement and as permitted by law, including distribution of Registrable Securities to a Holder’s members,
securityholders or partners), and pursuant thereto the Company shall, as expeditiously as possible:
3.1.1
prepare and file with the Commission as soon as practicable a Registration Statement with respect to such Registrable Securities
and use its reasonable best efforts to cause such Registration Statement to become effective and remain effective until all Registrable
Securities have ceased to be Registrable Securities;
3.1.2 prepare
and file with the Commission such amendments and post-effective amendments to the Registration Statement, and such supplements to
the Prospectus, as may be reasonably requested by any Holder that holds at least five percent (5%) of the Registrable Securities
registered on such Registration Statement or any Underwriter of Registrable Securities or as may be required by the rules,
regulations or instructions applicable to the registration form used by the Company or by the Securities Act or rules and
regulations thereunder to keep the Registration Statement effective until all Registrable Securities covered by such Registration
Statement are sold in accordance with the intended plan of distribution set forth in such Registration Statement or supplement to
the Prospectus;
3.1.3
prior to filing a Registration Statement or Prospectus, or any amendment or supplement thereto, furnish without charge to the Underwriters,
if any, and the Holders of Registrable Securities included in such Registration, and such Holders’ legal counsel, copies of such
Registration Statement as proposed to be filed, each amendment and supplement to such Registration Statement (in each case including all
exhibits thereto and documents incorporated by reference therein), the Prospectus included in such Registration Statement (including each
preliminary Prospectus), and such other documents as the Underwriters and the Holders of Registrable Securities included in such Registration
or the legal counsel for any such Holders may request in order to facilitate the disposition of the Registrable Securities owned by such
Holders;
3.1.4
prior to any public offering of Registrable Securities, use its reasonable best efforts to (i) register or qualify the Registrable
Securities covered by the Registration Statement under such securities or “blue sky” laws of such jurisdictions in the United
States as the Holders of Registrable Securities included in such Registration Statement (in light of their intended plan of distribution)
may request (or provide evidence satisfactory to such Holders that the Registrable Securities are exempt from such registration or qualification)
and (ii) take such action necessary to cause such Registrable Securities covered by the Registration Statement to be registered with or
approved by such other governmental authorities as may be necessary by virtue of the business and operations of the Company and do any
and all other acts and things that may be necessary or advisable to enable the Holders of Registrable Securities included in such Registration
Statement to consummate the disposition of such Registrable Securities in such jurisdictions; provided, however, that the
Company shall not be required to qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify
or take any action to which it would be subject to general service of process or taxation in any such jurisdiction where it is not then
otherwise so subject;
3.1.5
cause all such Registrable Securities to be listed on each national securities exchange on which similar securities issued by the
Company are then listed;
3.1.6
provide a transfer agent or warrant agent, as applicable, and registrar for all such Registrable Securities no later than the effective
date of such Registration Statement;
3.1.7
advise each seller of such Registrable Securities, promptly after it shall receive notice or obtain knowledge thereof, of the issuance
of any stop order by the Commission suspending the effectiveness of such Registration Statement or the initiation or threatening of any
proceeding for such purpose and promptly use its reasonable best efforts to prevent the issuance of any stop order or to obtain its withdrawal
if such stop order should be issued;
3.1.8 at
least five (5) days prior to the filing of any Registration Statement or Prospectus or any amendment or supplement to such
Registration Statement or Prospectus (or such shorter period of time as may be (a) necessary in order to comply with the Securities
Act, the Exchange Act, and the rules and regulations promulgated under the Securities Act or Exchange Act, as applicable or (b)
advisable in order to reduce the number of days that sales are suspended pursuant to Section 3.4), furnish a copy thereof to
each seller of such Registrable Securities or its counsel (excluding any exhibits thereto and any filing made under the Exchange Act
that is to be incorporated by reference therein);
3.1.9
notify the Holders at any time when a Prospectus relating to such Registration Statement is required to be delivered under the
Securities Act, of the happening of any event as a result of which the Prospectus included in such Registration Statement, as then in
effect, includes a Misstatement, and then to correct such Misstatement as set forth in Section 3.4;
3.1.10
in the event of an Underwritten Offering, a Block Trade, an Other Coordinated Offering, or sale by a broker, placement agent or
sales agent pursuant to such Registration, permit a representative of the Holders, the Underwriters or other financial institutions facilitating
such Underwritten Offering, Block Trade, Other Coordinated Offering or other sale pursuant to such Registration, if any, and any attorney,
consultant or accountant retained by such Holders or Underwriter to participate, at each such person’s or entity’s own expense,
in the preparation of the Registration Statement, and cause the Company’s officers, directors and employees to supply all information
reasonably requested by any such representative, Underwriter, financial institution, attorney, consultant or accountant in connection
with the Registration; provided, however, that such representatives, Underwriters or financial institutions agree to confidentiality
arrangements in form and substance reasonably satisfactory to the Company, prior to the release or disclosure of any such information
and provided further, the Company may not include the name of any Holder or Underwriter or any information regarding any Holder or Underwriter
in any Registration Statement or Prospectus, any amendment or supplement to such Registration Statement or Prospectus, any document that
is to be incorporated by reference into such Registration Statement or Prospectus, or any response to any comment letter, without the
prior written consent of such Holder or Underwriter and providing each such Holder or Underwriter a reasonable amount of time to review
and comment on such applicable document, which comments the Company shall include unless contrary to applicable law;
3.1.11
obtain a “cold comfort” letter from the Company’s independent registered public accountants in the event of an
Underwritten Offering, a Block Trade, an Other Coordinated Offering or sale by a broker, placement agent or sales agent pursuant to such
Registration (subject to such broker, placement agent or sales agent providing such certification or representation reasonably requested
by the Company’s independent registered public accountants and the Company’s counsel) in customary form and covering such
matters of the type customarily covered by “cold comfort” letters as the managing Underwriter may reasonably request, and
reasonably satisfactory to a majority-in-interest of the participating Holders;
3.1.12
in the event of an Underwritten Offering, a Block Trade, an Other Coordinated Offering or sale by a broker, placement agent or
sales agent pursuant to such Registration, on the date the Registrable Securities are delivered for sale pursuant to such Registration,
obtain an opinion, dated such date, of counsel representing the Company for the purposes of such Registration, addressed to the participating
Holders, the broker, placement agents or sales agent, if any and the Underwriters, if any, covering such legal matters with respect to
the Registration in respect of which such opinion is being given as the participating Holders, broker, placement agent, sales agent or
Underwriter may reasonably request and as are customarily included in such opinions and negative assurance letters;
3.1.13
in the event of any Underwritten Offering, a Block Trade, an Other Coordinated Offering or sale by a broker, placement agent or
sales agent pursuant to such Registration, enter into and perform its obligations under an underwriting or other purchase or sales agreement,
in usual and customary form, with the managing Underwriter or the broker, placement agent or sales agent of such offering or sale;
3.1.14
make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least
twelve (12) months beginning with the first day of the Company’s first full calendar quarter after the effective date of the Registration
Statement which satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any successor rule then in
effect);
3.1.15
with respect to an Underwritten Offering pursuant to Section 2.1.4, use its reasonable best efforts to make available
senior executives of the Company to participate in customary “road show” presentations that may be reasonably requested by
the Underwriter in such Underwritten Offering; and
3.1.16
otherwise, in good faith, cooperate reasonably with, and take such customary actions as may reasonably be requested by the participating
Holders, consistent with the terms of this Agreement, in connection with such Registration.
Notwithstanding the foregoing, the Company shall
not be required to provide any documents or information to an Underwriter or broker, sales agent or placement agent if such Underwriter
or broker, sales agent or placement agent has not then been named with respect to the applicable Underwritten Offering or other offering
involving a registration as an Underwriter or broker, sales agent or placement agent, as applicable.
3.2
Registration Expenses. The Registration Expenses of all Registrations shall be borne by the Company. It is acknowledged
by the Holders that the Holders selling any Registrable Securities in an offering shall bear all incremental selling expenses relating
to the sale of Registrable Securities, such as Underwriters’ commissions and discounts, brokerage fees, Underwriter marketing costs
and, other than as set forth in the definition of “Registration Expenses,” all fees and expenses of any legal counsel representing
the Holders.
3.3 Requirements
for Participation in Registration Statement in Offerings. Notwithstanding anything in this Agreement to the contrary, if any
Holder does not provide the Company with its requested Holder Information, the Company may exclude such Holder’s Registrable
Securities from the applicable Registration Statement or Prospectus if the Company determines, based on the advice of counsel, that
such information is necessary to effect the registration and such Holder continues thereafter to withhold such information. No
person or entity may participate in any Underwritten Offering or other offering for equity securities of the Company pursuant to a
Registration initiated by the Company hereunder unless such person or entity (i) agrees to sell such person’s or
entity’s securities on the basis provided in any underwriting, sales, distribution or placement arrangements approved by the
Company and (ii) completes and executes all customary questionnaires, powers of attorney, indemnities, lock-up agreements,
underwriting or other agreements and other customary documents as may be reasonably required under the terms of such underwriting,
sales, distribution or placement arrangements. The exclusion of a Holder’s Registrable Securities as a result of this Section 3.3
shall not affect the registration of the other Registrable Securities to be included in such Registration.
3.4
Suspension of Sales; Adverse Disclosure; Restrictions on Registration Rights.
3.4.1
Upon receipt of written notice from the Company that a Registration Statement or Prospectus contains a Misstatement, each of the
Holders shall forthwith discontinue disposition of Registrable Securities until it has received copies of a supplemented or amended Prospectus
correcting the Misstatement (it being understood that the Company hereby covenants to prepare and file such supplement or amendment as
soon as practicable after the time of such notice), or until it is advised in writing by the Company that the use of the Prospectus may
be resumed.
3.4.2
If the filing, initial effectiveness or continued use of a Registration Statement in respect of any Registration at any time would
(a) require the Company to make an Adverse Disclosure, (b) require the inclusion in such Registration Statement of financial
statements that are unavailable to the Company for reasons beyond the Company’s control or (c) in the good faith judgment of
the Board, be seriously detrimental to the Company and its holders of capital stock, and it would therefore be essential to defer such
filing, initial effectiveness or continued use at such time, the Company shall have the right, upon delivering prompt written notice of
such action to the Holders (which notice shall not specify the nature of the event giving rise to such delay or suspension), to delay
the filing or initial effectiveness of, or suspend use of, such Registration Statement for the shortest period of time determined in good
faith by the Company to be necessary for such purpose. In the event the Company exercises its rights under this Section 3.4.2,
the Holders agree to suspend, immediately upon their receipt of the notice referred to above, their use of the Prospectus relating to
any Registration in connection with any sale or offer to sell Registrable Securities until such Holder receives written notice from the
Company that such sales or offers of Registrable Securities may be resumed, and in each case maintain the confidentiality of such notice
and its contents.
3.4.3
During the period starting with the date ninety (90) days prior to the Company’s good faith estimate of the date of the filing
of, and ending on a date ninety (90) days after the effective date of, a Company-initiated Registration and provided that the Company
continues to actively employ, in good faith, all reasonable efforts to maintain the effectiveness of the applicable Shelf Registration
Statement, or (b) if, pursuant to Section 2.1.4, Holders have requested an Underwritten Shelf Takedown and
the Company and Holders are unable to obtain the commitment of underwriters to firmly underwrite such offering, the Company may, upon
giving prompt written notice of such action to the Holders, delay any other registered offering pursuant to Section 2.1.4
or 2.4 for not more than ninety (90) consecutive calendar days or more than one hundred twenty (120) total calendar days in each
case during any twelve (12)-month period.
3.5 Reporting
Obligations. As long as any Holder shall own Registrable Securities, the Company, at all times while it shall be a reporting
company under the Exchange Act, covenants to file timely (or obtain extensions in respect thereof and file within the applicable
grace period) all reports required to be filed by the Company after the date hereof pursuant to Sections 13(a) or 15(d) of the
Exchange Act and to promptly furnish the Holders upon request with true and complete copies of all such filings; provided
that any documents publicly filed or furnished with the Commission pursuant to the Electronic Data Gathering, Analysis and Retrieval
System shall be deemed to have been furnished or delivered to the Holders pursuant to this Section 3.5. The Company
further covenants that it shall use commercially reasonable efforts to take such further action as any Holder may reasonably
request, all to the extent required from time to time to enable such Holder to sell Registrable Securities held by such Holder
without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 promulgated under the
Securities Act (or any successor rule then in effect). Upon the request of any Holder, the Company shall deliver to such Holder a
written certification of a duly authorized officer as to whether it has complied with such requirements.
ARTICLE
IV
INDEMNIFICATION AND CONTRIBUTION
4.1
Indemnification.
4.1.1
The Company agrees to indemnify, to the extent permitted by law, each Holder of Registrable Securities, its officers, directors
and agents and each person or entity who controls such Holder (within the meaning of the Securities Act), against all losses, claims,
damages, liabilities and reasonable and documented out-of-pocket expenses (including, without limitation, reasonable and documented outside
attorneys’ fees) resulting from any untrue or alleged untrue statement of material fact contained in or incorporated by reference
in any Registration Statement, Prospectus or preliminary Prospectus or any amendment thereof or supplement thereto or any omission or
alleged omission of a material fact required to be stated therein or necessary to make the statements therein, in the case of the Prospectus
or preliminary Prospectus in the light of the circumstances under which they were made, not misleading,
except insofar as the same are caused by or contained in any information or affidavit so furnished in writing to the Company by such Holder
expressly for use therein. The Company shall indemnify the Underwriters, their officers and directors and each person or entity who controls
such Underwriters (within the meaning of the Securities Act) to the same extent as provided in the foregoing with respect to the indemnification
of the Holder.
4.1.2 In
connection with any Registration Statement in which a Holder of Registrable Securities is participating, such Holder shall furnish
(or cause to be furnished) to the Company in writing such information and affidavits as the Company reasonably requests for use in
connection with any such Registration Statement or Prospectus (the “Holder
Information”) and, to the extent permitted by law, shall indemnify the Company, its directors, officers and
agents and each person or entity who controls the Company (within the meaning of the Securities Act) against all losses, claims,
damages, liabilities and reasonable and documented out-of-pocket expenses (including, without limitation, reasonable and documented
outside attorneys’ fees) resulting from any untrue or alleged untrue statement of material fact contained or incorporated by
reference in any Registration Statement, Prospectus or preliminary Prospectus or any amendment thereof or supplement thereto or any
omission or alleged omission of a material fact required to be stated therein in the case of the Prospectus or preliminary
Prospectus in the light of the circumstances under which they were made, or necessary to make the statements therein not misleading,
but only to the extent that such untrue statement is contained in (or not contained in, in the case of an omission) any information
or affidavit so furnished in writing by or on behalf of such Holder expressly for use therein; provided, however, that
the obligation to indemnify shall be several, not joint and several, among such Holders of Registrable Securities, and the liability
of each such Holder of Registrable Securities shall be in proportion to and limited to the net proceeds received by such Holder from
the sale of Registrable Securities pursuant to such Registration Statement.
4.1.3
Any person or entity entitled to indemnification herein shall (i) give prompt written notice to the indemnifying party of any claim
with respect to which it seeks indemnification (provided that the failure to give prompt notice shall not impair any person’s or
entity’s right to indemnification hereunder to the extent such failure has not materially prejudiced the indemnifying party) and
(ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties
may exist with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory
to the indemnified party. If such defense is assumed, the indemnifying party shall not be subject to any liability for any settlement
made by the indemnified party without its consent (but such consent shall not be unreasonably withheld). An indemnifying party who is
not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one
counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified
party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim.
No indemnifying party shall, without the consent of the indemnified party, consent to the entry of any judgment or enter into any settlement
which cannot be settled in all respects by the payment of money (and such money is so paid by the indemnifying party pursuant to the terms
of such settlement) or which settlement includes a statement or admission of fault and culpability on the part of such indemnified party
or which settlement does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party
of a release from all liability in respect to such claim or litigation.
4.1.4
The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made
by or on behalf of the indemnified party or any officer, director or controlling person or entity of such indemnified party and shall
survive the transfer of securities. The Company and each Holder of Registrable Securities participating in an offering also agrees to
make such provisions as are reasonably requested by any indemnified party for contribution to such party in the event the Company’s
or such Holder’s indemnification is unavailable for any reason.
4.1.5 If
the indemnification provided under Section 4.1 from the indemnifying party is unavailable or insufficient to hold
harmless an indemnified party in respect of any losses, claims, damages, liabilities and out-of-pocket expenses referred to herein,
then the indemnifying party, in lieu of indemnifying the indemnified party, shall contribute to the amount paid or payable by the
indemnified party as a result of such losses, claims, damages, liabilities and out-of-pocket expenses in such proportion as is
appropriate to reflect the relative fault of the indemnifying party and the indemnified party, as well as any other relevant
equitable considerations. The relative fault of the indemnifying party and indemnified party shall be determined by reference to,
among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact, was made by (or not made by, in the case of an omission), or relates to information
supplied by (or not supplied by in the case of an omission), such indemnifying party or indemnified party, and the indemnifying
party’s and indemnified party’s relative intent, knowledge, access to information and opportunity to correct or prevent
such action; provided, however, that the liability of any Holder under this Section 4.1.5 shall be limited
to the amount of the net proceeds received by such Holder in such offering giving rise to such liability. The amount paid or payable
by a party as a result of the losses or other liabilities referred to above shall be deemed to include, subject to the limitations
set forth in Sections 4.1.1, 4.1.2 and 4.1.3 above, any legal or other fees, charges or out-of-pocket
expenses reasonably incurred by such party in connection with any investigation or proceeding. The parties hereto agree that it
would not be just and equitable if contribution pursuant to this Section 4.1.5 were determined by pro rata allocation or
by any other method of allocation, which does not take account of the equitable considerations referred to in this Section 4.1.5.
No person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution pursuant to this Section 4.1.5 from any person or entity who was not guilty of such fraudulent
misrepresentation.
ARTICLE
V
MISCELLANEOUS
5.1
Notices. Any notice or communication under this Agreement must be in writing and given by (i) deposit in the United States
mail, addressed to the party to be notified, postage prepaid and registered or certified with return receipt requested, (ii) delivery
in person or by courier service providing evidence of delivery, or (iii) transmission by hand delivery, electronic mail or facsimile.
Each notice or communication that is mailed, delivered, or transmitted in the manner described above shall be deemed sufficiently given,
served, sent, and received, in the case of mailed notices, on the third business day following the date on which it is mailed and, in
the case of notices delivered by courier service, hand delivery, electronic mail or facsimile, at such time as it is delivered to the
addressee (with the delivery receipt or the affidavit of messenger) or at such time as delivery is refused by the addressee upon presentation.
Any notice or communication under this Agreement must be addressed, if to the Company, to: Infrared Cameras Holdings, Inc., 2105 W Cardinal,
Beaumont, TX 77705, Attention: Gary Strahan, Email: gary.strahan@infraredcameras.com, and, if to any Holder, at such Holder’s address,
electronic mail address or facsimile number as set forth in the Company’s books and records. Any party may change its address for
notice at any time and from time to time by written notice to the other parties hereto, and such change of address shall become effective
thirty (30) days after delivery of such notice as provided in this Section 5.1.
5.2
Assignment; No Third Party Beneficiaries.
5.2.1
This Agreement and the rights, duties and obligations of the Company hereunder may not be assigned or delegated by the Company
in whole or in part.
5.2.2 Subject
to Section 5.2.4 and Section 5.2.5, this Agreement and the rights, duties and obligations of a Holder hereunder may be
assigned in whole or in part to such Holder’s Permitted Transferees; provided, that, with respect to the ICI Holders
and the Sponsor and the Sponsor Members, the rights hereunder that are personal to such Holders may not be assigned or delegated in
whole or in part, except that (x) each of the ICI Holders shall be permitted to transfer its rights hereunder as the ICI
Holders to one or more affiliates or any direct or indirect partners, members or equity holders of such ICI Holder (it being
understood that no such transfer shall reduce any rights of such ICI Holder or such transferees) and (y) the Sponsor and the
Sponsor Members shall be permitted to transfer their respective rights hereunder as the Sponsor and Sponsor Members to one or more
of their respective affiliates or any direct or indirect partners, members or equity holders of the Sponsor or the Sponsor Members
(it being understood that no such transfer shall reduce any rights of the Sponsor or the Sponsor Members or such transferees).
5.2.3
This Agreement and the provisions hereof shall be binding upon and shall inure to the benefit of each of the parties and its successors
and the permitted assigns of the Holders, which shall include Permitted Transferees.
5.2.4
This Agreement shall not confer any rights or benefits on any persons or entities that are not parties hereto, other than as expressly
set forth in this Agreement and Section 5.2.
5.2.5
No assignment by any party hereto of such party’s rights, duties and obligations hereunder shall be binding upon or obligate
the Company unless and until the Company shall have received (i) written notice of such assignment as provided in Section 5.1
hereof and (ii) the written agreement of the assignee, in a form reasonably satisfactory to the Company, to be bound by the terms and
provisions of this Agreement (which may be accomplished by an addendum or certificate of joinder to this Agreement). Any transfer or assignment
made other than as provided in this Section 5.2 shall be null and void.
5.3
Counterparts. This Agreement may be executed in multiple counterparts (including facsimile or PDF counterparts), each of
which shall be deemed an original, and all of which together shall constitute the same instrument, but only one of which need be produced.
The words “execution,” “signed,” “signature,” “delivery,” and words of like import in
or relating to this Agreement or any document to be signed in connection with this Agreement shall be deemed to include electronic signatures,
deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as
a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, and the
parties hereto consent to conduct the transactions contemplated hereunder by electronic means.
5.4
Governing Law; Venue. NOTWITHSTANDING THE PLACE WHERE THIS AGREEMENT MAY BE EXECUTED BY ANY OF THE PARTIES HERETO, THE PARTIES
EXPRESSLY AGREE THAT (1) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF NEW YORK AND (2) THE
VENUE FOR ANY ACTION TAKEN WITH RESPECT TO THIS AGREEMENT SHALL BE EXCLUSIVELY IN THE SUPREME COURT OF THE STATE OF NEW YORK, NEW YORK
COUNTY, AND ANY STATE APPELLATE COURT THEREFROM WITHIN THE STATE OF NEW YORK, NEW YORK COUNTY, OR IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF NEW YORK.
5.5
TRIAL BY JURY. EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY
TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND, THEREFORE, EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING
OUT OF, UNDER OR IN CONNECTION WITH OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.
5.6
Amendments and Modifications. Upon the written consent of (a) the Company and (b) the Holders of a majority of the
total Registrable Securities, compliance with any of the provisions, covenants and conditions set forth in this Agreement may be waived,
or any of such provisions, covenants or conditions may be amended or modified; provided, however, that notwithstanding the
foregoing, any amendment hereto or waiver hereof shall also require the written consent of the Sponsor Majority Holders so long as the
Sponsor and the Sponsor Members and their respective affiliates hold, in the aggregate, at least five percent (5%) of the outstanding
shares of Common Stock of the Company; provided, further, that notwithstanding the foregoing, any amendment hereto or waiver
hereof shall also require the written consent of each ICI Holder so long as such ICI Holder and its affiliates hold, in the aggregate,
at least five percent (5%) of the outstanding shares of Common Stock of the Company; and provided, further, that any amendment
hereto or waiver hereof that adversely affects one Holder, solely in its capacity as a holder of the shares of capital stock of the Company,
in a manner that is materially different from the other Holders (in such capacity) shall require the consent of the Holder so affected.
No course of dealing between any Holder or the Company and any other party hereto or any failure or delay on the part of a Holder or the
Company in exercising any rights or remedies under this Agreement shall operate as a waiver of any rights or remedies of any Holder or
the Company. No single or partial exercise of any rights or remedies under this Agreement by a party shall operate as a waiver or preclude
the exercise of any other rights or remedies hereunder or thereunder by such party.
5.7
Other Registration Rights. Other than as provided in the Warrant Agreement, dated as of October 18, 2021, between the Company
and Continental Stock Transfer & Trust Company, the Company represents and warrants that no person or entity, other than a Holder
of Registrable Securities, has any right to require the Company to register any securities of the Company for sale or to include such
securities of the Company in any Registration Statement filed by the Company for the sale of securities for its own account or for the
account of any other person or entity. Further, the Company represents and warrants that this Agreement supersedes any other registration
rights agreement or agreement with similar terms and conditions and in the event of a conflict between any such agreement or agreements
and this Agreement, the terms of this Agreement shall prevail.
5.8
Term. This Agreement shall terminate on the earlier of (a) the seventh anniversary of the date of this Agreement or (b)
with respect to any Holder, on the date that such Holder no longer holds any Registrable Securities. The provisions of Section 3.5 and
Article IV shall survive any termination.
5.9
Holder Information. Each Holder agrees, if requested in writing, to represent to the Company the total number of Registrable
Securities held by such Holder in order for the Company to make determinations hereunder.
5.10
Additional Holders; Joinder. In addition to persons or entities who may become Holders pursuant to Section 5.2 hereof,
subject to the prior written consent of each of the Sponsor Majority Holders and each ICI Holder (in each case, so long as such Holder
and its affiliates hold, in the aggregate, at least five percent (5%) of the outstanding shares of Common Stock of the Company), the Company
may make any person or entity who acquires Common Stock or rights to acquire Common Stock after the date hereof a party to this Agreement
(each such person or entity, an “Additional Holder”)
by obtaining an executed joinder to this Agreement from such Additional Holder in the form of Exhibit A attached hereto (a
“Joinder”). Such Joinder
shall specify the rights and obligations of the applicable Additional Holder under this Agreement. Upon the execution and delivery and
subject to the terms of a Joinder by such Additional Holder, the Common Stock of the Company then owned, or underlying any rights then
owned, by such Additional Holder (the “Additional
Holder Common Stock”) shall be Registrable Securities to the extent provided herein and therein and such Additional
Holder shall be a Holder under this Agreement with respect to such Additional Holder Common Stock.
5.11
Severability. It is the desire and intent of the parties that the provisions of this Agreement be enforced to the fullest
extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any
particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable
for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement
or affecting the validity or enforceability of this Agreement or affecting the validity or enforceability of such provision in any other
jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable
in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement
or affecting the validity or enforceability of such provision in any other jurisdiction.
5.12
Entire Agreement; Restatement. This Agreement constitutes the full and entire agreement and understanding between the parties
with respect to the subject matter hereof and supersedes all prior agreements and understandings relating to such subject matter. Upon
the Closing, the Original RRA shall no longer be of any force or effect.
[SIGNATURE PAGES FOLLOW]
IN WITNESS WHEREOF, the undersigned
have caused this Agreement to be executed as of the date first written above.
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COMPANY: |
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INFRARED CAMERAS HOLDINGS, INC. |
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a Delaware corporation |
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By: |
/s/ Gary Strahan |
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Name: |
Gary Strahan |
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Title: |
Chief Executive Officer |
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SPONSOR: |
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SPORTSMAP, LLC |
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a Delaware limited liability company |
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By: |
/s/ David Gow |
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Name: |
David Gow |
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Title: |
Chief Executive Office |
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SPONSOR MEMBERS: |
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/s/ David Gow |
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David Gow |
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/s/ Jacob Swain |
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Jacob Swain |
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/s/ Lawson Gow |
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Lawson Gow |
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/s/ David Graff |
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David Graff |
[Signature Page to Amended and Restated Registration
Rights Agreement]
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/s/ Oliver Luck |
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Oliver Luck |
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/s/ Reid Ryan |
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Reid Ryan |
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/s/ Steve Webster |
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Steve Webster |
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ICI HOLDERS: |
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/s/ Gary Strahan |
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Gary Strahan |
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/s/ Villard Capital |
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Villard Capital |
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/s/ Peter Baird |
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Peter Baird |
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/s/ Jeff Guida |
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Jeff Guida |
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/s/ Steve Guidry |
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Steve Guidry |
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/s/ Steven Winch |
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Steven Winch |
[Signature Page to Amended and Restated Registration
Rights Agreement]
Exhibit A
REGISTRATION RIGHTS AGREEMENT JOINDER
The undersigned is executing
and delivering this joinder (this “Joinder”)
pursuant to the Amended and Restated Registration Rights Agreement, dated as of December 19, 2023 (as the same may hereafter be amended,
the “Registration Rights Agreement”), among
Infrared Cameras Holdings, Inc., a Delaware corporation (the “Company”),
and the other persons or entities named as parties therein. Capitalized terms used but not otherwise defined herein shall have the meanings
provided in the Registration Rights Agreement.
By executing and delivering
this Joinder to the Company, and upon acceptance hereof by the Company upon the execution of a counterpart hereof, the undersigned hereby
agrees to become a party to, to be bound by, and to comply with the Registration Rights Agreement as a Holder of Registrable Securities
in the same manner as if the undersigned were an original signatory to the Registration Rights Agreement, and the undersigned’s
shares of Common Stock shall be included as Registrable Securities under the Registration Rights Agreement to the extent provided therein;
provided, however, that the undersigned and its permitted assigns (if any) shall not have any rights as Holders, and the
undersigned’s (and its transferees’) shares of Common Stock shall not be included as Registrable Securities, for purposes
of the Excluded Sections.
For purposes of this Joinder,
“Excluded Sections” shall mean [ ].
Accordingly, the undersigned
has executed and delivered this Joinder as of the __________ day of __________, 20__.
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Signature of Stockholder |
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Print Name of Stockholder |
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Its: |
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Address: |
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Agreed and Accepted as of
____________, 20__
[________]
Exhibit 10.7
FORM OF LOCK-UP AGREEMENT
This LOCK-UP AGREEMENT
(this “Agreement”), dated as of December 19, 2023, is made and entered into by and between Infrared Cameras
Holdings, Inc., a Delaware corporation (the “Company”) (formerly known as SportsMap Tech Acquisition Corp.,
a Delaware corporation), and the Persons set forth on Schedule I hereto (such Persons, together with any Person who hereafter becomes
a party to this Agreement pursuant to Section 2 or Section 6 of this Agreement, the “Securityholders”
and each, a “Securityholder”).
WHEREAS, the Company,
ICH Merger Sub Inc., a Delaware corporation and a direct wholly owned subsidiary of the Company (“Merger Sub”),
and Infrared Cameras Holdings, Inc., a Delaware corporation (“Target”), entered into that certain Business Combination
Agreement (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Business
Combination Agreement”); capitalized terms used but not defined herein shall have the respective meanings ascribed to such
terms in the Business Combination Agreement), dated as of December 5, 2022, pursuant to which, among other things, on the date hereof,
Merger Sub merged with and into Target with Target surviving as a wholly owned subsidiary of the Company (the “Merger”);
WHEREAS, following
the consummation of the Merger, each Securityholder owns equity interests in the Company;
WHEREAS, in connection
with the Merger, the parties hereto wish to set forth herein certain understandings between such parties with respect to restrictions
on transfer of equity interests in the Company; and
WHEREAS, each of the
Persons set forth on Schedule II hereto is concurrently entering into a Lock-Up Agreement, on substantially the same terms as the
Securityholders.
NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and agreements set forth herein and in the Business Combination Agreement, and
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, each intending
to be legally bound, hereby agree as follows:
| 1. | Transfer Restrictions. Subject to the exceptions set forth herein, each Securityholder agrees not
to, without the prior written consent of the board of directors of the Company, (a) sell, offer to sell, contract or agree to sell, hypothecate,
pledge, grant any option, right or warrant to purchase or otherwise transfer, dispose of or agree to transfer or dispose of, directly
or indirectly, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning
of Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations
of the Securities and Exchange Commission promulgated thereunder, any shares of common stock, par value $0.0001 per share, of the Company
(“Company Common Stock”) [the shares held by them (or their successors and assigns) and included in Exhibit
A hereto] [held by it immediately after the Effective Time of the Merger, any shares of Company Common Stock issuable upon the exercise
of options to purchase shares of Company Common Stock held by it immediately after the Effective Time of the Merger, or any securities
convertible into or exercisable or exchangeable for Company Common Stock held by it immediately after the Effective Time of the Merger]
(the “Lock-up Shares”), (b) enter into any swap, hedge, or other arrangement that transfers to another, in whole
or in part, any of the economic consequences of ownership of any of the Lock-up Shares, whether any such transaction is to be settled
by delivery of such securities, in cash or otherwise or
(c) publicly announce any intention to effect any transaction specified in clause (a) or (b) (the actions specified
in clauses (a) through (c), collectively, “Transfer”) until (i) with respect to 50% of the Lock-up
Shares, the earlier of (A) six months after the Closing Date and (B) the first date on which the closing price of the Company Common Stock
equals or exceeds $12.50 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and similar transactions)
for any 20 Trading Days within any 30-Trading Day period commencing after the Closing and (ii) with respect to the remaining Lock-up Shares,
six months after the Closing Date (the “Lock-Up Period”), subject in each case to the early release provisions
set forth in Section 3 below. For purposes of this Section 1,
a “Trading Day” means any day on which The Nasdaq Global Market is open for trading. In furtherance of the foregoing,
during the Lock-Up Period, the Company will (x) place a stop order on all the Lock-up Shares, including those which may be covered by
a registration statement, and (y) notify the Company’s transfer agent in writing of the stop order and the restrictions on the Lock-up
Shares under this Agreement and direct the Company’s transfer agent not to process any attempts by the Securityholder to resell
or transfer any Lock-up Shares, except in compliance with this Agreement. |
2.
Permitted Transfers. The restrictions set forth in Section 1 shall not apply to:
(a)
Transfers of any securities other than the Lock-up Shares;
(b)
in the case of an entity, Transfers (i) to another entity that is an affiliate (as defined in Rule 405 promulgated under the Securities
Act of 1933, as amended (the “Securities Act”)) of a Securityholder, or to any investment fund or other entity
controlling, controlled by, managing or managed by or under common control with a Securityholder or its affiliates or who shares a common
investment advisor with a Securityholder or (ii) as part of a distribution to members, partners, shareholders or equity holders of a Securityholder;
(c)
in the case of an individual, Transfers by gift to members of the individual’s immediate family (as defined below) or to
a trust, the beneficiary of which is a member of one of the individual’s immediate family, an affiliate of such person or to a charitable
organization;
(d)
in the case of an individual, Transfers by virtue of laws of descent and distribution upon death of the individual;
(e)
in the case of an individual, Transfers by operation of law or pursuant to a court order, such as a qualified domestic relations
order, divorce decree or separation agreement;
(f)
in the case of an individual, Transfers to a partnership, limited liability company or other entity of which a Securityholder and/or
the immediate family (as defined below) of a Securityholder are the legal and beneficial owner of all of the outstanding equity securities
or similar interests;
(g)
in the case of an entity that is a trust, Transfers to a trustor or beneficiary of the trust or to the estate of a beneficiary
of such trust;
(h)
in the case of an entity, Transfers by virtue of the laws of the state of the entity’s organization and the entity’s
organizational documents upon dissolution of the entity;
(i) Transfers
relating to Company Common Stock or other securities convertible into or exercisable or exchangeable for Company Common Stock
acquired in open market transactions after the Closing; provided that no such transaction is required to be, or is, publicly
announced (whether on Form 4, Form 5 or otherwise, other than a required filing on Schedule 13F, 13G or 13G/A) during the Lock-Up
Period;
(j)
the exercise of stock options or warrants to purchase shares of Company Common Stock or the vesting of stock awards of Company
Common Stock and any related Transfer of shares of Company Common Stock in connection therewith (x) deemed to occur upon the “cashless”
or “net” exercise of such options or warrants or (y) for the purpose of paying the exercise price of such options or warrants
or for paying taxes due as a result of the exercise of such options or warrants, the vesting of such options, warrants or stock awards,
or as a result of the vesting of such shares of Company Common Stock, it being understood that all shares of Company Common Stock received
upon such exercise, vesting or Transfer will remain subject to the restrictions of this Agreement during the Lock-Up Period;
(k)
Transfers to the Company pursuant to any contractual arrangement in effect upon the consummation of the Merger that provides for
the repurchase by the Company or forfeiture of Company Common Stock or other securities convertible into or exercisable, redeemable or
exchangeable for Company Common Stock in connection with the termination of a Securityholder’s service to the Company;
(l)
the entry, by a Securityholder, at any time after the Effective Time of the Merger, of any trading plan providing for the sale
of shares of Company Common Stock by a Securityholder, which trading plan meets the requirements of Rule 10b5-1(c) under the Exchange
Act; provided, however, that such plan does not provide for, or permit, the sale of any shares of Company Common Stock during
the Lock-Up Period and no public announcement or filing is voluntarily made or required regarding such plan during the Lock-Up Period
(whether on Form 4, Form 5 or otherwise, other than a required filing on Schedule 13F, 13G or 13G/A);
(m)
Transfers in the event of completion of a liquidation, merger, stock exchange, reorganization, tender offer or other similar transaction
that results in all of the Company’s securityholders having the right to exchange their shares of Company Common Stock for cash,
securities or other property;
(n)
Transfers to satisfy any U.S. federal, state, or local income tax obligations of a Securityholder (or its direct or indirect owners)
arising from a change in the U.S. Internal Revenue Code of 1986, as amended (the “Code”), or the U.S. Treasury
Regulations promulgated thereunder (the “Regulations”) after the date on which the Business Combination Agreement
was executed by the parties, and such change prevents the Merger from qualifying as a “reorganization” pursuant to Section
368 of the Code (and the Merger does not qualify for similar tax-free treatment pursuant to any successor or other provision of the Code
or Regulations taking into account such changes), in each case solely and to the extent necessary to cover any tax liability as a direct
result of the transaction; and
(o)
the pledge of Company Common Stock as security or collateral in connection with any borrowing or the incurrence of indebtedness
by a Securityholder, and any Transfer pursuant to the exercise by the pledgee of its rights pursuant to such pledge;
provided, however, that in the case
of clauses (b) through (h), these permitted transferees must enter into a written agreement, in substantially the form of this
Agreement (it being understood that any references to “immediate family” in the agreement executed by such transferee
shall expressly refer only to the immediate family of the applicable Securityholder and not to the immediate family of the
transferee), agreeing to be bound by these Transfer restrictions. For
purposes of this Section 2, “immediate family” shall mean a spouse, domestic partner, child (including by
adoption), father, mother, brother or sister of the applicable Securityholder, and lineal descendant (including by adoption) of the
applicable Securityholder or of any of the foregoing persons; and “affiliate” shall have the meaning set forth in Rule
405 under the Securities Act.
3.
Termination. This Agreement shall terminate upon the earliest to occur of (i) the expiration of the Lock-Up Period, (ii)
the completion, after the Closing, of any merger, liquidation, stock exchange, reorganization, tender offer or other similar transaction
that results in all of the public stockholders of the Company having the right to exchange their shares of Company Common Stock for cash,
securities or other property and (iii) the liquidation of the Company.
4.
Prohibited Transfers. In furtherance of the foregoing, the Company, and any duly appointed transfer agent for the registration
or transfer of the securities described therein, are hereby authorized to decline to make any transfer of securities if such transfer
would constitute a violation or breach of this Agreement.
5.
Amendments. This Agreement may be amended, supplemented or modified, or any provision hereof waived, in whole or in part,
only by a duly authorized agreement in writing, executed by the Company and the Securityholders holding a majority of the shares of Company
Common Stock then held by the Securityholders in the aggregate as to which this Agreement has not been terminated, executed in the same
manner as this Agreement and which makes reference to this Agreement. This Agreement may not be modified or amended or any provision hereof
waived except as provided in the immediately preceding sentence and any purported amendment, modification or waiver by any party or parties
hereto effected in a manner which does not comply with this Section 5 shall be null and void, ab initio.
6.
Binding Effect; Assignment. Except as set forth herein, this Agreement and the obligations of the Securityholders pursuant
hereto are personal to each such Securityholder and may not be transferred by such Securityholder at any time. Any purported assignment
in violation of this paragraph shall be void and ineffectual and shall not operate to transfer or assign any interest or title to the
purported assignee. This Agreement shall be binding on each Securityholder and each of its respective successors, heirs and assigns and
permitted transferees.
7.
Governing Law. This Agreement, and all claims or causes of actions based upon, arising out of or related to this Agreement
and the transactions contemplated hereby, shall be governed by and construed and enforced in accordance with the laws of the State of
Delaware, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another
jurisdiction.
8. Jurisdiction;
Venue. Any claim or cause of action based upon, arising out of or related to this Agreement or the transactions contemplated
hereby must be brought in the Court of Chancery of the State of Delaware (or, to the extent such court does not have jurisdiction,
in the United States District Court for the District of Delaware and to the extent such court does not have subject matter
jurisdiction, the Superior Court of the State of Delaware), and each of the parties irrevocably (a) submits to the exclusive
jurisdiction of each such court in any such claim or cause of action, (b) waives any objection it may now or hereafter have to
personal jurisdiction, venue or to convenience of forum, (c) agrees that all claims in respect of any such claim or cause of action
shall be heard and determined only in any such court, and (d) agrees not to bring any such claim or cause of action in any other
court. Nothing herein contained shall be deemed to affect the right of any party to serve process in any manner permitted by law or
to commence claims or causes of action or otherwise proceed against any other party in any other jurisdiction, in each case, to
enforce judgments obtained in any claim or cause of action brought pursuant to this Section 8.
9.
Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT AND THE
TRANSACTIONS CONTEMPLATED HEREBY IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY,
UNCONDITIONALLY AND VOLUNTARILY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM OR CAUSE OF ACTION DIRECTLY
OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.
10.
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original,
but all of which shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement
or any joinder to this Agreement by electronic means, including DocuSign, e-mail, or scanned pages shall be effective as delivery of a
manually executed counterpart to this Agreement.
11.
Severability. Whenever possible, each provision of this Agreement will be interpreted in such a manner as to be effective
and valid under applicable law, but if any term or other provision of this Agreement is held to be invalid, illegal or unenforceable under
applicable law, all other provisions of this Agreement shall remain in full force and effect so long as the economic or legal substance
of the transactions contemplated hereby are not affected in any manner materially adverse to any party hereto. Upon such determination
that any term or other provision of this Agreement is invalid, illegal or unenforceable under applicable law, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable
manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.
12.
Liability. The liability of any Securityholder hereunder is several (and not joint). Notwithstanding any other provision
of this Agreement, in no event will any Securityholder be liable for any other Securityholder’s breach of such other Securityholder’s
obligations under this Agreement.
[remainder of page intentionally left blank]
IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on the day and year first above written.
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Exhibit 10.8
AMENDED AND RESTATED
EMPLOYMENT AGREEMENT
This Amended and Restated
Employment Agreement is entered into among Infrared Cameras Holdings, Inc., a Delaware corporation (the “Company”),
Infrared Cameras, Inc., a Texas Corporation (“ICI”) and Gary Strahan (“Strahan”), and together with
the Company and ICI, the “Parties”), and sets out the general terms of Strahan’s employment, duties, and compensation.
WHEREAS, the Company and
Strahan previously entered into that certain Employment Agreement, by and between the Company and Strahan, effective as of August 1, 2023
(the “Original Agreement”).
WHEREAS, the Company desires
to continue to retain the services and employment of Strahan, and Strahan desires to continue to provide his services to and be employed
by the Company, in each case upon the terms and conditions hereinafter set forth.
WHEREAS, the Company has
entered into that certain Business Combination Agreement by and among SportsMap Tech Acquisition Corp. (“SportsMap”),
ICH Merger Sub Inc. (“Merger Sub”) and the Company, dated as of December 5, 2022, as amended June 26, 2023 and as further
amended September 5, 2023, (the “Merger Agreement”) pursuant to which Merger Sub will merge with and into the Company
(the “Merger”) with the Company surviving the Merger as a wholly-owned subsidiary of SportsMap.
NOW, THEREFORE, in consideration
of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which
are mutually acknowledged, the Parties agree as follows:
1. Effective
Date. This Agreement is effective as of December 19, 2023 (the “Effective Date”) and continues until terminated
pursuant to paragraph 10.
2. Duties.
(a) Strahan
will act as the Company’s Chief Executive Officer (“CEO”). Strahan shall have responsibility for the Company’s
management, and will report to the Board of Directors. Strahan’s duties and responsibilities will include making
major corporate decisions, managing overall operations, and setting the Company’s strategic direction.
Strahan will perform such other duties and responsibilities as are commensurate with the title and position of CEO, including those
that are necessary or appropriate for the operation and management of the Company as determined by the Company, and may include regulatory
and compliance, human resources and information technology.
(b) Strahan
agrees to serve the Company faithfully and to the best of Strahan’s ability and to devote his substantially full business time,
attention and efforts to the Company’s operations during his employment. During his employment, Strahan will (i) work with other
employees, independent contractors, vendors, service providers and clients of the Company, as applicable, and its divisions, subsidiaries
and affiliates controlled by the Company in a respectful, competent and professional manner; and (ii) carry out his duties and responsibilities
hereunder in a competent and professional manner.
(c) Strahan
agrees to comply with and be bound by such employment-related policies and practices as the Company implements, including all employee,
ethical and client conflict-of-interest policies, as such policies may be interpreted, adopted, revised or terminated from time to time
in the Company’s sole discretion. Such policies may or may not be in writing and may be communicated either in writing, verbally
and/or via electronic means (i.e., email).
3. Compensation.
During the term of Strahan’s employment under this Agreement, Strahan will be compensated as follows:
(a) Base
Salary. Strahan will be paid an annual salary in the gross amount of $240,000. Strahan’s base salary will be paid in equal installments
on the Company’s normal payroll schedule. Strahan will also be eligible to receive annual bonus compensation, payable at the sole
discretion of the Company’s board of directors (the “Board”) or a subcommittee thereof.
(b) Compensation.
Should Strahan be removed as CEO or choose to step down as CEO, the Parties intend that he will continue to work for the Company for the
salary above as an advisor for the Company for the remaining term of this Agreement.
4. Benefits.
During the term of Strahan’s employment under this Agreement, the Company will provide Strahan with the following benefits:
(a) Vacation.
Strahan will be eligible for paid vacation, in accordance with the Company’s vacation policy, as in effect from time to time.
(b) Professional
Development. The Company will reimburse Strahan for reasonable expenses incurred with respect to maintaining any licenses held or
professional development subject to approval by the Board in advance of Strahan incurring such expenses.
(c) Additional
Benefits. Strahan will be eligible to participate in and receive the standard benefits provided to all Company employees, including,
but not limited to, coverage under its group health insurance plan, pursuant to the terms of such plans and programs. The Company provides
no assurance as to the adoption or continuance of any particular benefit plan or program.
5. Business
Expenses. The Company will reimburse Strahan for all reasonable expenses incurred in the performance of his duties under
this Agreement upon presenting to the Company appropriate monthly expense reports with supporting documentation substantiating such expenses,
in accordance with the Company’s expense reimbursement policy as in effect from time to time.
6. Nondisclosure
and Protection of Proprietary Information.
(a) Strahan
acknowledges that he will have access to the Company's Proprietary and Trade Secret Information, as defined below. Both during employment
with the Company and at all times after such employment ends, Strahan covenants to hold in the strictest confidence and not use or disclose
to any person, firm, corporation or other entity any of the Company’s Proprietary and Trade Secret Information, except as such disclosure
may be required (i) in connection with Strahan’s work for the Company, (ii) as expressly authorized by Company policies in effect
from time to time, or (iii) except as protected by paragraph 8 below. Strahan understands that this non-disclosure obligation continues
indefinitely after the termination of this Agreement.
(b) For
the purposes of this Agreement, the term “Proprietary and Trade Secret Information” shall mean any and all Company
confidential and/or proprietary knowledge, data or information of the Company, its affiliates, parents and subsidiaries, whether having
existed, now existing, or to be developed during the employment period, including, but not limited to: (i) information regarding new products,
marketing and selling, business plans, budgets and unpublished financial statements, prices and costs, margins, discounts, credit terms,
pricing and billing policies, quoting procedures, methods of obtaining business, contracts, forecasts, future plans and potential strategies,
financial projections and business strategies, operational plans, financing and capital-raising plans, activities and agreements, internal
services and operational manuals, methods of conducting Company business, suppliers and supplier information, and purchasing; (ii) information
regarding clients and potential clients of the Company; (iii) information regarding any of the Company’s business partners and their
services, including names, representatives, proposals, bids, contracts and their contents and parties, the type and quantity of products
and services received by the Company, and other non-public information relating to business partners; (iv) information regarding personnel,
employee lists, compensation, and employee skills; and (v) any other non-public information which a competitor of the Company could use
to the competitive disadvantage of the Company. The term “Proprietary and Trade Secret Information” shall not include information
that Strahan acquired from a third party without a duty of confidentiality or that is or becomes readily ascertainable to the public,
in each case through lawful means and through no breach of this Agreement or any other agreement.
7. Non-competition,
Non-Solicitation and Non-Disparagement. While this Agreement is in effect, and during Strahan’s employment with the
Company and for a period of twelve (12) months following termination of Strahan’s employment for any reason (or, with respect to
subclause (d), at all times thereafter), Strahan covenants not to:
(a) engage
in, own, or have any interest in, whether alone or together with or on behalf of or through any other person or entity, whether as a sole
proprietor, partner, shareholder, agent, officer, director, employee, advisor, consultant, trustee, beneficiary or otherwise, in any business
or organization which competes in the same field with the Company, which is the development, manufacture, sales, service and deployment
of infrared (thermal) cameras and systems, including training in the use of such cameras and systems and software used therein, and/or
other business the Company may engage in during Strahan’s employment with the Company, or may have taken material steps toward engaging
in as of the termination of such employment (a “Competing Entity”), anywhere in the world; or
(b) solicit
or attempt to hire, influence, or otherwise direct any employee, consultant, contractor, or other service provider of the Company or its
affiliates to leave or reduce their employment or engagement; or
(c) persuade
or attempt to persuade or otherwise induce any other person or entity which has a business relationship or planned relationship with the
Company at any time during Strahan’s employment, and had a business relationship with the Company within the two-year period prior
to any such persuasion, interference or other action prohibited by this paragraph, to discontinue, reduce or adversely modify such business
relationship with the Company, or otherwise attempt to interfere with such business relationship of the Company; or
(d) make
statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take any action
which may, directly or indirectly, disparage the Company or any of its subsidiaries or affiliates or their respective officers, directors,
employees, advisors, businesses or reputations, except as protected by paragraph 8 below.
The
parties acknowledge that the type and periods of restriction imposed in the provisions of this paragraph 7 are fair and reasonable and
are reasonably required for the protection of the Company and the goodwill associated with the business of the Company. If any of the
covenants in paragraph 7, or any part thereof, is hereafter construed to be invalid or unenforceable, the same shall not affect the remainder
of the covenant or covenants, which shall be given full effect, without regard to the invalid portions, and the invalid or unenforceable
provision or provisions shall be modified so as to be enforceable and valid consistent with the intent of the parties, to the fullest
extent allowed by law. Strahan acknowledges that the Company conducts business world-wide. If any provision of this Agreement is deemed
to be overly restrictive, a court of proper jurisdiction may alter such provision to provide for the maximum protection of the Company
deemed reasonable under applicable law. Notwithstanding the foregoing, Strahan acknowledges and agrees that all of the provisions in this
paragraph 7 do not impose an undue hardship on him, are fair and reasonable to him under the circumstances, and Strahan therefore waives
any defense to the enforcement of the terms hereof on such grounds.
8. Protected
Activity. Nothing herein shall be construed to prohibit Strahan from: (a) communicating directly with, cooperating with, or
providing information to, any government regulator, including, but not limited to, the U.S. Securities and Exchange Commission, the U.S.
Commodity Futures Trading Commission, the U.S. Department of Justice, the U.S. Equal Employment Opportunity Commission, or the U.S. National
Labor Relations Commission; or (b) discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination
based on a protected characteristic or any other conduct that Strahan has reason to believe is unlawful. Further, Strahan acknowledges
that the Company has provided him with the following notice of immunity rights in compliance with the requirements of the Defend Trade
Secrets Act: (i) an individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure
of a trade secret that is made in confidence to a Federal, State, or local government official or to an attorney solely for the purpose
of reporting or investigating a suspected violation of law, (ii) an individual shall not be held criminally or civilly liable under any
Federal or State trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit
or other proceeding, if such filing is made under seal, and (iii) an individual who files a lawsuit for retaliation by an employer for
reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information
in the court proceeding, if the individual files any document containing the trade secret under seal; and does not disclose the trade
secret, except pursuant to court order.
9. Equitable
Relief. The parties acknowledge that each would suffer unique and irreparable injury in the event of a breach of the covenants
contained in paragraphs 6 and 7 of this Agreement, which breach could not be adequately compensated by the payment of damages. Accordingly,
in the event of any such breach by either party of the covenants contained in paragraphs 6 and 7, the parties agree that this Agreement
may be enforced by a decree of specific performance or an injunction, without the need to post bond, in addition to all other relief available
to the Company, including damages. The parties agree that an action to enforce paragraphs 6 and/or 7 may be brought in any state or federal
court of competent jurisdiction.
10. Termination
of Employment.
(a) Effective
as of the Effective Date, Strahan’s employment hereunder shall be for a term (the “Employment Period”) commencing
on the Effective Date and ending on the first anniversary of the Effective Date (the “Initial Termination Date”), unless
earlier terminated by either Party for any reason or no reason, for no additional compensation. If not previously terminated, effective
as of the Initial Termination Date (and on every anniversary of the Initial Termination Date thereafter), the Employment Period shall
be automatically extended by 12 months unless a party has previously provided the other party with written notice that it does not wish
to have the Employment Period so extended (a “Non-Renewal”) at least 60 days prior to the end of the then-current Employment
Period. Notwithstanding anything to the contrary in the foregoing, Strahan’s employment hereunder is terminable at will by the Company
or by Strahan at any time (for any reason or for no reason), subject to the provisions of this paragraph 10.
(b) Return
of Company Property. Strahan shall return all property belonging to the Company (including, but not limited to, any Company-provided
laptops, computers, cell phones, wireless electronic mail devices or other equipment, or documents and property belonging to the Company)
that are in his possession and control immediately upon his last day of employment. Upon Strahan’s termination of employment for
any reason, Strahan shall retain ownership of his Company vehicle and this vehicle will become Strahan’s personal property should
Strahan depart from the Company; provided, that he will purchase this vehicle from the Company, within sixty days following his termination
date, at the then-applicable market value.
(c) Termination
of Offices and Directorships. Upon termination of Strahan’s employment for any reason, unless otherwise specified in a written
agreement between Strahan and the Company, Strahan shall be deemed to have resigned from all offices, directorships, and other employment
positions if any, then held with the Company, and shall take all actions reasonably requested by the Company to effectuate the foregoing.
11. Intellectual
Property. In consideration of the Company’s employment of Strahan hereunder, Strahan acknowledges that any and all
patents, licenses, copyrights, trade names, trademarks, assumed names, service marks, promotional/marketing/advertising campaigns, designs,
logos, slogans, computer software and other intellectual property developed, conceived or created by Strahan in the course of his employment
by the Company, either individually or in collaboration with others, and whether or not during normal working hours or on the premises
of the Company (collectively, “Developments”) shall be, as between the Company and Strahan, the sole and absolute property
of the Company, and Strahan hereby assigns and agrees to assign in the future (when any such Developments are first reduced to practice
or first fixed in a tangible medium, as applicable) to the Company all his right, title and interest in and to any and all Developments
whether or not patentable or registrable under copyright or similar statutes and agrees that he will, at the Company’s request and
cost, take whatever action is necessary to secure the rights thereto by patent, copyright, assignment or otherwise to the Company. Strahan
agrees to make full and prompt disclosure to the Company of all such Developments arising during his employment. Strahan recognizes that
this Agreement will not be deemed to require assignment of any Developments that he developed entirely on his own time without using the
Company’s equipment, supplies, facilities, trade secrets, or confidential information, except for those Developments that either
(i) relate to the Company’s actual or anticipated business, research or development; or (ii) result from or are connected with work
performed by Strahan for the Company.
12. Dispute
Resolution.
(a)
Except as excluded below, any dispute, controversy or claim arising out
of, relating to, or in connection with, this Agreement or any breach, termination or validity thereof (a
“Dispute”) shall be finally settled by arbitration. The arbitration shall be conducted in accordance with the
Employment Arbitration Rules & Mediation Procedure of the American Arbitration Association (the “Rules”) in
effect at the time of the arbitration and available at https://www.adr.org/employment, except as they may be modified herein or by
mutual agreement of the parties. The seat of the arbitration shall be Delaware.
(b) The arbitration shall be conducted by one arbitrator in accordance with the appointment provisions set out in the Rules. The arbitration award shall be in writing and shall be final and binding on the parties. The award may include an award of costs, including reasonable attorney’s fees and disbursements. Judgment upon award may be entered by any court having jurisdiction thereof or having jurisdiction over the parties or their assets.
(c)
Notwithstanding anything in this Agreement to the contrary, the arbitration provisions of this Agreement shall be governed by and
enforceable pursuant to the Federal Arbitration Act, and, in all other respects, the arbitrator shall apply the substantive laws of the
state designated in paragraph 19, with the same statutes of limitation and available remedies that would apply if the claims were brought
in a court of law of competent jurisdiction. Either party may bring an action in court to compel arbitration under this Agreement and
to enforce an arbitration award.
(d)
To the maximum extent permitted by applicable law, the Company and Strahan shall equally share all costs unique to arbitration,
including without limitation arbitration administrative fees, arbitrator compensation and expenses, and costs of any witnesses called
by the arbitrator. Unless otherwise ordered by the arbitrator under applicable law, the Company and Strahan shall each bear his, her,
their or its own expenses, such as expert witness fees, filing fees, and attorneys’ fees and costs. Nothing herein shall prevent
the Company or Strahan from seeking a statutory award of reasonable attorneys’ fees and costs.
(e)
THE COMPANY AND STRAHAN EACH WAIVE HIS OR ITS RIGHT TO A TRIAL BY JURY OF ANY COVERED CLAIM. STRAHAN WAIVES HIS RIGHT TO BRING
ANY COVERED CLAIM AS PART OF OR IN CONNECTION WITH A CLASS OR COLLECTIVE ACTION.
(f) Notwithstanding the foregoing, this paragraph 12 shall not preclude either party from pursuing a court action for the sole purpose
of obtaining a temporary restraining order or a preliminary injunction in circumstances in which such relief is appropriate (including
to enforce the Company’s rights in the event of a breach of paragraphs 6 or 7 above. Further, this arbitration agreement shall not
apply to any: (i) claims for unemployment and workers’ compensation benefits; (ii) sexual harassment and sexual assault disputes
arising under federal, state, local, or tribal law, unless Strahan elects to arbitrate such disputes; (iii) claims arising under the National
Labor Relations Act or which are brought before the National Labor Relations Board; (iv) claims brought before the Equal Employment Opportunity
Commission or similar state or local agency, if Board is required to exhaust Strahan’s administrative remedies; provided, that any
appeal from an award or denial of an award by any such agency or any further action upon receipt of a right-to-sue letter shall be arbitrated
pursuant to the terms of this Agreement; and (v) any other claim, which by law cannot be subject to mandatory arbitration.
13. Notices.
(a) Every
notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom
it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein
provided, including via e-mail, provided that, unless and until some other address be so designated, all notices or communications by
Strahan to the Company shall be mailed, e-mailed or delivered to the Company at its principal offices, and all notices or communications
by the Company to Strahan may be given to Strahan personally or may be mailed to Strahan at his last known street or e-mail address, as
reflected in the Company’s records.
(b) Any
notice so addressed shall be deemed to be given: (i) if delivered by hand, or sent by email (and subject to an electronic receipt or other
proof of transmission thereof), on the date of such delivery or transmission; (ii) if mailed by overnight mail, on the first business
day following the date of such mailing; and (iii) if mailed by registered or certified mail, on the third business day after the date
of such mailing.
14. Entire
Agreement; No Amendment. As of the Effective Date, this Agreement contains the entire understanding between the parties hereto
with respect to the subject matter hereof, and supersedes any prior understandings, agreements or representations, written or oral, relating
to the subject matter hereof including, without limitation, the Original Agreement, which is terminated and of no further force or effect,
except with respect to any non-conflicting restrictive covenants that Strahan may have separately agreed to, which shall continue in full
force and effect pursuant to their terms and be read together with the covenants in this Agreement to provide maximum coverage to the
Company. The terms of this Agreement may not be amended or modified unless done so in writing and signed by the Company and Strahan.
15. Effect
of Waiver. The failure of either party at any time to require performance by the other party of any provision hereunder
shall in no way affect the right of that party thereafter to enforce the same, nor shall it affect any other party’s right to enforce
the same, or to enforce any of the other provisions in this Agreement; and the waiver by either party of a breach of any provision of
this Agreement shall not operate as or be construed a waiver of any subsequent breach thereof.
16. Assignment.
The rights and benefits of the Company under this Agreement shall be transferable, and all covenants and agreements hereunder shall enure
to the benefit of and be binding on the Company and its successors or assigns. This Agreement may not be assigned by Strahan.
17. No
Conflict. Strahan represents and warrants that he is not subject to any agreement, instrument, order, judgment or decree
of any kind, or any other restrictive agreement of any character, which would prevent him from entering into this Agreement or which would
be breached by Strahan upon the performance of his duties pursuant to this Agreement. Strahan agrees not to enter into any agreement or
obligation, whether written or oral, in conflict with the terms or conditions of this Agreement.
18. Severability;
Survival. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement. The provisions of paragraphs 6 through and including 9, paragraphs 11 through and including
19, and paragraph 21 hereof shall survive the termination of this Agreement.
19. Governing
Law. This Agreement is to be construed under the laws of the State of Delaware.
20. Counterparts.
This Agreement may be executed in counterparts, each of which will be deemed an original, and the counterparts together constitute
one and the same agreement, notwithstanding that all of the parties are not signatory to the original or the same counterpart.
21. Section
409A. This Agreement is intended to be exempt from Section 409A of the Internal Revenue Code and the Treasury Regulations
promulgated thereunder (“Section 409A”)to the greatest extent possible, to comply with Section 409A to the extent it
is applicable and is to be interpreted and operated consistently with those intentions. All payments of nonqualified deferred compensation
subject to Section 409A to be made upon a termination of employment under this Agreement may only be made upon Strahan’s “separation
from service” within the meaning of Section 409A. Any right to a series of installment payments pursuant to this Agreement is to
be treated as a right to a series of separate payments. Notwithstanding anything to the contrary in this Agreement, no compensation or
benefits shall be paid to Strahan during the six-month period following Strahan’s “separation from service” if the Company
determines that paying such amounts at the time or times indicated in this Agreement would be a prohibited distribution under Section
409A(a)(2)(B)(i) of the Code. If the payment of any such amounts is delayed as a result of the previous sentence, then on the first day
of the seventh month following the date of separation from service (or such earlier date upon which such amount can be paid under Section
409A without resulting in a prohibited distribution, including as a result of Strahan’s death), the Company shall pay Strahan a
lump-sum amount equal to the cumulative amount that would have otherwise been payable to Strahan during such period.
22. No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the Company and Strahan
to express their mutual intent, and no rule of law or contract interpretation that provides that in the case of ambiguity or uncertainty
a provision should be construed against the draftsperson will be applied against any party hereto. The provisions of this Agreement shall
be construed according to their fair meaning and neither for nor against any party hereto irrespective of which party caused such provisions
to be drafted. Each of the Company and Strahan acknowledges that it or he has been represented by an attorney or advised to seek the advice
of an attorney in connection with the preparation and execution of this Agreement.
23. Sarbanes-Oxley
Act of 2002. Notwithstanding anything herein to the contrary, if the Company determines, in its good faith judgment, that any
transfer or deemed transfer of funds hereunder is likely to be construed as a personal loan prohibited by Section 13(k) of the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, then such transfer or deemed transfer shall be
provided to Strahan as compensation (and not as a loan) to Strahan (and as such shall be subject to tax withholding obligations).
24. Withholding.
The Company may withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation.
[Signature page follows]
INFRARED CAMERAS, INC. |
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By: |
/s/ Steve Guidry |
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Steve Guidry, duly elected and acting |
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Secretary on behalf of the Corporation |
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Dated: December 19, 2023 |
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INFRARED CAMERAS HOLDINGS, INC. |
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By: |
/s/ Steve Guidry |
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Steve Guidry, duly elected and acting |
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Secretary on behalf of the Corporation |
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Dated: December 19, 2023 |
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GARY STRAHAN |
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/s/ Gary Strahan |
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Gary Strahan |
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Dated: December 19, 2023 |
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Exhibit 10.9
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This Amended and Restated
Employment Agreement (the “Agreement”) is entered into among Infrared Cameras Holdings, Inc., a Delaware corporation
(the “Company”), Infrared Cameras, Inc., a Texas corporation (“ICI”) and Steve Winch (“Winch”
and together with the Company and ICI, the “Parties”), and sets out the general terms of Winch’s employment,
duties, and compensation.
WHEREAS, the Company, ICI
and Winch previously entered into that certain Employment Agreement, by and among the Company, ICI and Winch, effective as of December
1, 2022 (the “Prior Agreement”).
WHEREAS, the Company desires
to continue to retain the services and employment of Winch, and Winch desires to continue to provide his services to and be employed by
the Company, in each case upon the terms and conditions hereinafter set forth.
WHEREAS, the
Company has entered into that certain Business Combination Agreement by and among SportsMap Tech Acquisition Corp. (“SportsMap”),
ICH Merger Sub Inc. (“Merger Sub”) and the Company, dated as of December 5, 2022, as amended June 26, 2023, and as
further amended September 5, 2023, (the “Merger Agreement”) pursuant to which Merger Sub will merge with and into the
Company (the “Merger”) with the Company surviving the Merger as a wholly-owned subsidiary of SportsMap.
NOW, THEREFORE, in consideration
of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which
are mutually acknowledged, the Parties agree as follows:
1. Effective Date. This Agreement is effective as of December 19, 2023 (the “Effective Date”), and
continues until terminated pursuant to paragraph 10.
2. Duties.
(a)
Winch will act as the President (“President”) of the Company. Winch shall have responsibility for the overall
operation and management of the Company, and will report to the Chairman of the Board of Directors of the Company (the “Board”).
Winch’s duties and responsibilities will include (i) advising the Board in respect of the overall performance of the Company, (ii)
developing business plans, strategies, policies and procedures for the Board’s consideration, (iii) implementing business plans,
strategy, policies and procedures as approved by the Board, (iv) providing leadership and management to all levels of the Company, including
fostering an appropriate culture for the Company, (v) driving and achieving agreed targets, (vi) overseeing and being responsible for
the operation, administration and development of the Company, (vii) submitting management reports to the Board as required, (viii) managing
other regular internal reporting as required, (ix) protecting and enhancing the image, profile and reputation of the Company, (x) establishing
and maintaining an effective and collaborative relationships with key stakeholders, and (xi) ensuring the Company’s compliance with
legal and regulatory obligations. Winch will perform such other duties and responsibilities as are commensurate with the title and position
of President, including those that are necessary or appropriate for the operation and management of the Company as determined by the Chairman
of the Board.
(b) Winch agrees to serve the Company faithfully and to the best of Winch’s ability during his employment. During his employment,
Winch will (i) work with other employees, independent contractors, vendors, service providers and clients of the Company, as applicable,
and its divisions, subsidiaries and affiliates in a respectful, competent and professional manner; and (ii) carry out his duties and responsibilities
hereunder in a competent and professional manner.
(c) Winch agrees to comply with and be bound by such employment-related policies and practices as the Company implements, including
all employee, ethical and client conflict-of-interest policies, as such policies may be interpreted, adopted, revised or terminated from
time to time in the Company’s sole discretion. Such policies may or may not be in writing and may be communicated either in writing,
verbally and/or via electronic means (i.e. email).
3. Compensation. During the term of Winch’s employment under this Agreement, Winch will be compensated as follows:
(a) Base Salary. The Company will pay Winch an annual base salary in the gross amount of $350,000. Winch’s base salary
will be paid in equal installments on the Company’s normal payroll schedule.
(b) Equity Grant. Winch will be granted the following equity awards:
(i) The Company will grant Winch 58,698 restricted stock units (the “Pre-Closing RSU Award”), with such grant to
be effective as of no later than immediately prior to the closing of the Merger. The Pre-Closing RSU Award will be subject to the terms
and conditions of the Restricted Stock Unit Award Agreement substantially in the form attached hereto as Exhibit A (the “Pre-Closing
RSU Award Agreement”).
(ii)
SportsMap will grant Winch 635,649 restricted stock units (the “Post-Closing RSU Award”), with such grant to
be effective as of the effectiveness of the Form S-8 with respect to shares of SportsMap’s common stock issuable under the Infrared
Cameras Holdings, Inc. 2023 Incentive Award Plan (the “New Equity Plan”). The Post-Closing RSU Award will be subject
to the terms and conditions of the New Equity Plan and the Restricted Stock Unit Award Agreement substantially in the form attached hereto
as Exhibit B (the “Post-Closing RSU Award Agreement”).
For the avoidance of doubt,
in the event that the Merger Agreement is terminated pursuant to its terms or the transactions contemplated thereby are not consummated,
this paragraph 3 will not be effective and Winch will not have any right, title or interest to receive, or with respect to, any equity
or equity-based awards pursuant to this paragraph 3.
4. Benefits. During the term of Winch’s employment under this Agreement, the Company will provide Winch with the
following benefits:
(a) Vacation. Winch will be provided with four (4) weeks of paid vacation time per calendar year.
(b) Professional Development. The Company will reimburse Winch for reasonable expenses incurred with respect to maintaining
any licenses held or professional development subject to approval by the Chairman of the Board in advance of Winch incurring such expenses.
(c) Additional Benefits. Winch will be eligible to participate in and receive the standard benefits provided to any senior-level
Company employees, including, but not limited to, coverage under its group health insurance plan, pursuant to the terms of such plans
and programs. The Company provides no assurance as to the adoption or continuance of any particular benefit plan or program.
5. Business Expenses. The Company will reimburse Winch for all reasonable expenses incurred in the performance of his
duties under this Agreement upon presenting to the Company appropriate monthly expense reports with supporting documentation substantiating
such expenses, in accordance with the Company’s expense reimbursement policy as in effect from time to time.
6. Nondisclosure and Protection of Proprietary Information.
(a) Winch acknowledges that he will have access to the Company’s Proprietary and Trade Secret Information, as defined below.
Both during employment with the Company and at all times after such employment ends, Winch covenants to hold in the strictest confidence
and not use or disclose to any person, firm, corporation or other entity any of the Company’s Proprietary and Trade Secret Information,
except as such disclosure may be required (i) in connection with Winch’s work for the Company, (ii) as expressly authorized by Company
policies in effect from time to time, or (iii) except as protected by paragraph 8 below. Winch understands that this non-disclosure obligation
continues indefinitely after the termination of this Agreement.
(b) For the purposes of this Agreement, the term “Proprietary and Trade Secret Information” shall mean any and all
confidential and/or proprietary knowledge, data or information of the Company, its affiliates, parents and subsidiaries , whether having
existed, now existing, or to be developed during the employment period, including, but not limited to: (i) information regarding new products,
marketing and selling, business plans, budgets and unpublished financial statements, prices and costs, margins, discounts, credit terms,
pricing and billing policies, quoting procedures, methods of obtaining business, contracts, forecasts, future plans and potential strategies,
financial projections and business strategies, operational plans, financing and capital-raising plans, activities and agreements, internal
services and operational manuals, methods of conducting Company business, suppliers and supplier information, and purchasing; (ii) information
regarding clients and potential clients of the Company; (iii) information regarding any of the Company’s business partners and their
services, including names, representatives, proposals, bids, contracts and their contents and parties, the type and quantity of products
and services received by the Company , and other non-public information relating to business partners; (iv) information regarding personnel,
employee lists, compensation, and employee skills; and (v) any other non-public information which a competitor of the Company could use
to the competitive disadvantage of the Company. The term “Proprietary and Trade Secret Information” shall not include information
that Winch acquired from a third party without a duty of confidentiality or that is or becomes readily ascertainable to the public, in
each case through lawful means and through no breach of this Agreement or any other agreement.
7. Noncompetition, Nonsolicitation and Non-Disparagement. While this Agreement is in effect, and during Winch’s
employment with the Company and for a period of twelve (12) months following termination of Winch’s employment for any reason (or,
with respect to subclause (d), at all times thereafter), Winch covenants not to:
(a) engage in, own, or have any interest in, whether alone or together with or on behalf of or through any other person or entity,
whether as a sole proprietor, partner, shareholder, agent, officer, director, employee, advisor, consultant, trustee, beneficiary or otherwise,
in any business or organization which competes in the same field with the Company, which is the development, manufacture, sales, service
and deployment of infrared (thermal) cameras and systems, including training in the use of such cameras and systems and software used
therein, and/or other business the Company may engage in during Winch’s employment with the Company, or may have taken material
steps toward engaging in as of the termination of such employment, anywhere in the world; or
(b) solicit or attempt to hire, influence, or otherwise direct any employee, consultant, contractor, or other service provider of the
Company or its affiliates to leave or reduce their employment or engagement; or
(c) persuade or attempt to persuade or otherwise induce any other person or entity which has a business relationship or planned relationship
with the Company at any time during Winch’s employment, and had a business relationship with the Company within the two-year period
prior to any such persuasion, interference or other action prohibited by this paragraph, to discontinue, reduce or adversely modify such
business relationship with the Company , or otherwise attempt to interfere with such business relationship of the Company ; or
(d) make statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take
any action which may, directly or indirectly, disparage the Company or any of its subsidiaries or affiliates or their respective officers,
directors, employees, advisors, businesses or reputations, except as protected by paragraph 8 below.
The Company is hereby providing
Winch with the following notice:
The District of Columbia’s Ban on Non-Compete
Agreements Amendment Act of 2020 limits the use of non-compete agreements. It allows employers to request non-compete agreements from
highly compensated employees as that term is defined in the Ban on Non-Compete Agreements Amendment Act of 2020, under certain conditions.
The Company has determined that Winch is a highly compensated employee. For more information about the Ban on Non-Compete Agreements Amendment
Act of 2020, Winch may contact the District of Columbia Department of Employment Services (DOES).
Winch acknowledges that Winch received a copy
of this Agreement at least fourteen (14) days prior to date on which Winch is required to execute this Agreement.
The parties acknowledge that
the type and periods of restriction imposed in the provisions of this paragraph 7 are fair and reasonable and are reasonably required
for the protection of the Company and the goodwill associated with the business of the Company . If any of the covenants in paragraph
7, or any part thereof, is hereafter construed to be invalid or unenforceable, the same shall not affect the remainder of the covenant
or covenants, which shall be given full effect, without regard to the invalid portions, and the invalid or unenforceable provision or
provisions shall be modified so as to be enforceable and valid consistent with the intent of the parties, to the fullest extent allowed
by law. Winch acknowledges that the Company conducts business world-wide. If any provision of this Agreement is deemed to be overly restrictive,
a court of proper jurisdiction may alter such provision to provide for the maximum protection of the Company deemed reasonable under applicable
law. Notwithstanding the foregoing, Winch acknowledges and agrees that all of the provisions in this paragraph 7 do not impose an undue
hardship on him, are fair and reasonable to him under the circumstances, and Winch therefore waives any defense to the enforcement of
the terms hereof on such grounds.
8. Protected Activity. Nothing herein shall be construed to prohibit Winch from: (a) communicating directly with, cooperating
with, or providing information to, any government regulator, including, but not limited to, the U.S. Securities and Exchange Commission,
the U.S. Commodity Futures Trading Commission, the U.S. Department of Justice, the U.S. Equal Employment Opportunity Commission, or the
U.S. National Labor Relations Commission; or (b) discussing or disclosing information about unlawful acts in the workplace, such as harassment
or discrimination based on a protected characteristic or any other conduct that Winch has reason to believe is unlawful. Further, Winch
acknowledges that the Company has provided him with the following notice of immunity rights in compliance with the requirements of the
Defend Trade Secrets Act: (i) an individual shall not be held criminally or civilly liable under any Federal or State trade secret law
for the disclosure of a trade secret that is made in confidence to a Federal, State, or local government official or to an attorney solely
for the purpose of reporting or investigating a suspected violation of law, (ii) an individual shall not be held criminally or civilly
liable under any Federal or State trade secret law for the disclosure of a trade secret that is made in a complaint or other document
filed in a lawsuit or other proceeding, if such filing is made under seal, and (iii) an individual who files a lawsuit for retaliation
by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the
trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal; and does
not disclose the trade secret, except pursuant to court order.
9. Equitable Relief. The parties acknowledge that each would suffer unique and irreparable injury in the event of a
breach of the covenants contained in paragraphs 6 and 7 of this Agreement, which breach could not be adequately compensated by the payment
of damages. Accordingly, in the event of any such breach by either party of the covenants contained in paragraphs 6 and 7, the parties
agree that this Agreement may be enforced by a decree of specific performance or an injunction, without the need to post bond, in addition
to all other relief available to the Company, including damages. The parties agree that an action to enforce paragraphs 6 and/or 7 may
be brought in any state or federal court of competent jurisdiction.
10. Termination of Employment.
(a) Effective as of the Effective Date, Winch’s employment hereunder shall be for a term (the “Employment Period”)
commencing on the Effective Date and ending on the first anniversary of the Effective Date (the “Initial Termination Date”),
unless earlier terminated in accordance with the terms of this Agreement. If not previously terminated, effective as of the Initial Termination
Date (and on every anniversary of the Initial Termination Date thereafter), the Employment Period shall be automatically extended by 12
months unless a party has previously provided the other party with written notice that it does not wish to have the Employment Period
so extended at least 60 days prior to the end of the then-current Employment Period. Notwithstanding anything to the contrary in the foregoing,
Winch’s employment hereunder is terminable at will by the Company or by Winch at any time (for any reason or for no reason), subject
to the provisions of this paragraph 10.
(b) By Winch. Winch may terminate employment at any time with ninety (90) days’ written notice to the Company (the “Resignation
Notice Period”). The Company will pay Winch all compensation and benefits earned through the Resignation Notice Period. In addition,
the Company may decide to pay Winch for part or all of the Resignation Notice Period in lieu of continuing to perform work on behalf of
the Company. The Company will not pay Winch any severance, nor any compensation or benefits, after the Resignation Notice Period expires.
(c) Without Cause. The Company may terminate Winch’s employment any time without Cause (as defined below) with ninety
(90) days prior written notice to Winch (the “Termination Notice Period”). The Company will pay Winch all compensation
and benefits earned through the Termination Notice Period. In addition, the Company may decide to pay Winch for part or all of the Termination
Notice Period in lieu of continuing to perform work on behalf of the Company.
(d) With Cause. The Company may also terminate Winch’s employment immediately without any further compensation or other
payments with “Cause”, which is defined to mean the occurrence of any of the following as determined in the sole discretion
of the Company:
(i)
Winch engages in conduct that materially impairs the Company’s business operations or causes material damage to the Company’s
customers, property, goodwill or business;
(ii)
Winch breaches any of the obligations contained in paragraph 2 of this Agreement in any respect, has been provided with notice
and 60 days to cure the breach, and has failed to cure (as determined by the Board in its sole discretion);
(iii)
Winch breaches his obligations contained in paragraphs 6 or 7 of this Agreement in any material respect;
(iv)
Winch engages in gross misconduct, including but not limited to, failure to perform Winch’s duties or to follow directives
of the Board;
(v) Winch intentionally and willfully violates the Company’s material written policies on workplace discrimination or harassment
in any manner that causes economic or reputational harm to the Company, as determined by an independent investigation conducted under
the direction of the Board;
(vi)
Winch commits theft, fraud, misappropriation or embezzlement in connection with the Company’s business; or
(vii)
Winch is convicted of or has pleaded guilty or nolo contendere to a felony.
(e) Return of Company Property. Winch shall return all property belonging to the Company (including, but not limited to, any
Company-provided laptops, vehicles, computers, cell phones, wireless electronic mail devices or other equipment, or documents and property
belonging to the Company) that are in his possession and control immediately upon his last day of employment.
(f) Termination of Offices and Directorships. Upon termination of Winch’s employment for any reason, unless otherwise
specified in a written agreement between Winch and the Company, Winch shall be deemed to have resigned from all offices, directorships,
and other employment positions if any, then held with the Company, and shall take all actions reasonably requested by the Company to effectuate
the foregoing.
11. Intellectual Property. In consideration of the Company’s employment of Winch hereunder, Winch acknowledges
that any and all patents, licenses, copyrights, trade names, trademarks, assumed names, service marks, promotional/marketing/advertising
campaigns, designs, logos, slogans, computer software and other intellectual property developed, conceived or created by Winch in the
course of his employment by the Company, either individually or in collaboration with others, and whether or not during normal working
hours or on the premises of the Company (collectively, “Developments”) shall be, as between the Company and Winch,
the sole and absolute property of the Company, and Winch hereby assigns and agrees to assign in the future (when any such Developments
are first reduced to practice or first fixed in a tangible medium, as applicable) to the Company all his right, title and interest in
and to any and all Developments whether or not patentable or registrable under copyright or similar statutes and agrees that he will,
at the Company’s request and cost, take whatever action is necessary to secure the rights thereto by patent, copyright, assignment
or otherwise to the Company. Winch agrees to make full and prompt disclosure to the Company of all such Developments arising during his
employment. Winch recognizes that this Agreement will not be deemed to require assignment of any Developments that he developed entirely
on his own time without using the Company’s equipment, supplies, facilities, trade secrets, or confidential information, except
for those Developments that either (i) relate to the Company’s actual or anticipated business, research or development; or (ii)
result from or are connected with work performed by Winch for the Company.
12. Dispute Resolution.
(a) Except as excluded below, any dispute, controversy or claim arising out of, relating to, or in connection with, this Agreement
or any breach, termination or validity thereof (a “Dispute”) shall be finally settled by arbitration. The arbitration
shall be conducted in accordance with the Employment Arbitration Rules & Mediation Procedure of the American Arbitration Association
(the “Rules”) in effect at the time of the arbitration and available at https://www.adr.org/employment, except as they
may be modified herein or by mutual agreement of the parties. The seat of the arbitration shall be Delaware.
(b) The arbitration shall be conducted by one arbitrator in accordance with the appointment provisions set out in the Rules. The arbitration
award shall be in writing and shall be final and binding on the parties. The award may include an award of costs, including reasonable
attorney’s fees and disbursements. Judgment upon award may be entered by any court having jurisdiction thereof or having jurisdiction
over the parties or their assets.
(c) Notwithstanding anything in this Agreement to the contrary, the arbitration provisions of this Agreement shall be governed by and
enforceable pursuant to the Federal Arbitration Act, and, in all other respects, the arbitrator shall apply the substantive laws of the
state designated in paragraph 19, with the same statutes of limitation and available remedies that would apply if the claims were brought
in a court of law of competent jurisdiction. Either party may bring an action in court to compel arbitration under this Agreement and
to enforce an arbitration award.
(d) To the maximum extent permitted by applicable law, the Company and Winch shall equally share all costs unique to arbitration, including
without limitation arbitration administrative fees, arbitrator compensation and expenses, and costs of any witnesses called by the arbitrator.
Unless otherwise ordered by the arbitrator under applicable law, the Company and Winch shall each bear his, her, their or its own expenses,
such as expert witness fees, filing fees, and attorneys’ fees and costs. Nothing herein shall prevent the Company or Winch from
seeking a statutory award of reasonable attorneys’ fees and costs.
(e) THE COMPANY AND WINCH EACH WAIVE HIS OR ITS RIGHT TO A TRIAL BY JURY OF ANY COVERED CLAIM. WINCH WAIVES HIS RIGHT TO BRING ANY
COVERED CLAIM AS PART OF OR IN CONNECTION WITH A CLASS OR COLLECTIVE ACTION.
(f) Notwithstanding the foregoing, this paragraph 12 shall not preclude either party from pursuing a court action for the sole purpose
of obtaining a temporary restraining order or a preliminary injunction in circumstances in which such relief is appropriate (including
to enforce the Company’s rights in the event of a breach of paragraphs 6 or 7 above. Further, this arbitration agreement shall not
apply to any: (i) claims for unemployment and workers’ compensation benefits; (ii) sexual harassment and sexual assault disputes
arising under federal, state, local, or tribal law, unless Winch elects to arbitrate such disputes; (iii) claims arising under the National
Labor Relations Act or which are brought before the National Labor Relations Board; (iv) claims brought before the Equal Employment Opportunity
Commission or similar state or local agency, if Board is required to exhaust Winch’s administrative remedies; provided, that any
appeal from an award or denial of an award by any such agency or any further action upon receipt of a right-to-sue letter shall be arbitrated
pursuant to the terms of this Agreement; and (v) any other claim, which by law cannot be subject to mandatory arbitration.
13. Notices.
(a) Every notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the
party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other
party as herein provided, including via e-mail, provided that, unless and until some other address be so designated, all notices or communications
by Winch to the Company shall be mailed, e-mailed or delivered to the Company at its principal offices, and all notices or communications
by the Company to Winch may be given to Winch personally or may be mailed or e-mailed to Winch at his last known street or e-mail address,
each as reflected in the Company’s records.
(b) Any notice so addressed shall be deemed to be given: (i) if delivered by hand, or sent by e-mail (and subject to an electronic
receipt or other proof of transmission thereof), on the date of such delivery or transmission; (ii) if mailed by overnight mail, on the
first business day following the date of such mailing; and (iii) if mailed by registered or certified mail, on the third business day
after the date of such mailing.
14. Entire Agreement; No Amendment. As of the Effective Date, this Agreement, together with the Pre-Closing RSU Award
Agreement and the Post-Closing RSU Award Agreement, contains the entire understanding between the parties hereto with respect to the subject
matter hereof and supersedes any prior understandings, agreements or representations, written or oral, relating to the subject matter
hereof including, without limitation, the Prior Agreement, which is terminated and of no further force or effect, except with respect
to any non-conflicting restrictive covenants that Winch may have separately agreed to, which shall continue in full force and effect pursuant
to their terms and read together with the covenants in this Agreement to provide maximum coverage to the Company. The terms of this Agreement
may not be amended or modified unless done so in writing and signed by the Company and Winch.
15. Effect of Waiver. The failure of either party at any time to require performance by the other party of any provision
hereunder shall in no way affect the right of that party thereafter to enforce the same, nor shall it affect any other party’s right
to enforce the same, or to enforce any of the other provisions in this Agreement; and the waiver by either party of a breach of any provision
of this Agreement shall not operate as or be construed a waiver of any subsequent breach thereof.
16. Assignment. The rights and benefits of the Company under this Agreement shall be transferable, and all covenants
and agreements hereunder shall enure to the benefit of and be binding on the Company and its successors or assigns. This Agreement may
not be assigned by Winch.
17. No Conflict. Winch represents and warrants that he is not subject to any agreement, instrument, order, judgment or
decree of any kind, or any other restrictive agreement of any character, which would prevent him from entering into this Agreement or
which would be breached by Winch upon the performance of his duties pursuant to this Agreement. Winch agrees not to enter into any agreement
or obligation, whether written or oral, in conflict with the terms or conditions of this Agreement.
18. Severability; Survival. The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement. The provisions of paragraphs 6 through and including 9, paragraphs
11 through and including 19, and paragraph 21 hereof shall survive the termination of this Agreement.
19. Governing Law. This Agreement is to be construed under the laws of the State of Delaware.
20. Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, and the counterparts
together constitute one and the same agreement, notwithstanding that all of the parties are not signatory to the original or the same
counterpart.
21. Section 409A. This Agreement is intended to be exempt from Section 409A of the Internal Revenue Code and the Treasury
Regulations promulgated thereunder (“Section 409A”) to the greatest extent possible, to comply with Section 409A to the extent
it is applicable and is to be interpreted and operated consistently with those intentions. All payments of nonqualified deferred compensation
subject to Section 409A to be made upon a termination of employment under this Agreement may only be made upon the Winch’s “separation
from service” within the meaning of Section 409A. Any right to a series of installment payments pursuant to this Agreement is to
be treated as a right to a series of separate payments. Notwithstanding anything to the contrary in this Agreement, no compensation or
benefits shall be paid to Winch during the six-month period following Winch’s “separation from service” if the Company
determines that paying such amounts at the time or times indicated in this Agreement would be a prohibited distribution under Section
409A(a)(2)(B)(i) of the Code. If the payment of any such amounts is delayed as a result of the previous sentence, then on the first day
of the seventh month following the date of separation from service (or such earlier date upon which such amount can be paid under Section
409A without resulting in a prohibited distribution, including as a result of Winch’s death), the Company shall pay Winch a lump-sum
amount equal to the cumulative amount that would have otherwise been payable to Winch during such period.
22. No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the Company
and Winch to express their mutual intent, and no rule of law or contract interpretation that provides that in the case of ambiguity or
uncertainty a provision should be construed against the draftsperson will be applied against any party hereto. The provisions of this
Agreement shall be construed according to their fair meaning and neither for nor against any party hereto irrespective of which party
caused such provisions to be drafted. Each of the Company and Winch acknowledges that it or he has been represented by an attorney or
advised to seek the advice of an attorney in connection with the preparation and execution of this Agreement.
23. Sarbanes-Oxley Act of 2002. Notwithstanding anything herein to the contrary, if the Company determines, in its good
faith judgment, that any transfer or deemed transfer of funds hereunder is likely to be construed as a personal loan prohibited by Section
13(k) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, then such transfer or
deemed transfer shall be provided to Winch as compensation (and not as a loan) to Winch (and as such shall be subject to tax withholding
obligations).
24. Withholding. The Company may withhold from any amounts payable under this Agreement such federal, state, local or
foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.
[Signature
page follows]
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INFRARED CAMERAS, INC. |
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By: |
/s/ Gary Strahan |
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Gary Strahan |
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CEO |
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Dated: December 19, 2023 |
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INFRARED CAMERAS HOLDINGS, INC. |
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By: |
/s/ Gary Strahan |
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Gary Strahan |
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Founder & CEO |
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Dated: December 19, 2023 |
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STEVE WINCH |
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By: |
/s/ Steve Winch |
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Steve Winch |
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Dated: December 19, 2023 |
Exhibit 10.10
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This Amended and Restated
Employment Agreement (the “Agreement”) is entered into among Infrared Cameras Holdings, Inc., a Delaware corporation
(the “Company”), Infrared Cameras, Inc., a Texas corporation (“ICI”) and Peter Baird (“Baird”
and together with the Company and ICI, the “Parties”), and sets out the general terms of Baird’s employment,
duties, and compensation.
WHEREAS, the Company and Baird
previously entered into that certain Employment Agreement, by and between the Company and Baird, effective as of October 1, 2022
(the “Original Agreement”).
WHEREAS, the Company desires
to continue to retain the services and employment of Baird, and Baird desires to continue to provide his services to and be employed by
the Company, in each case upon the terms and conditions hereinafter set forth.
WHEREAS, the Company has entered
into that certain Business Combination Agreement by and among SportsMap Tech Acquisition Corp. (“SportsMap”), ICH
Merger Sub Inc. (“Merger Sub”) and the Company, dated as of December 5, 2022, as amended June 26, 2023 and
as further amended September 5, 2023, (the “Merger Agreement”) pursuant to which Merger Sub will merge with and
into the Company (the “Merger”) with the Company surviving the Merger as a wholly-owned subsidiary of SportsMap.
NOW, THEREFORE, in consideration
of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which
are mutually acknowledged, the Parties agree as follows:
1. Effective
Date. This Agreement is effective as of December 19, 2023 (the “Effective Date”) and continues until terminated
pursuant to paragraph 10.
2. Duties.
(a) Baird
will act as the Company’s Chief Financial Officer (“CFO”). Baird shall have responsibility for the Company’s
financial and accounting operations, and will report to the Company’s President. Baird’s duties and responsibilities will
include (i) financial planning and analysis; (ii) business development and mergers and acquisitions support; (iii) oversight
of tax function and investor relations, which are intended to be outsourced; (iv) treasury management; and (v) oversight of
the internal audit function. Baird will perform such other duties and responsibilities as are commensurate with the title and position
of CFO, including those that are necessary or appropriate for the financial operation and management of the Company as determined by the
Company, and may include regulatory and compliance, human resources, information technology and commercial oversight and strategy.
(b) Baird
agrees to serve the Company faithfully and to the best of Baird’s ability and to devote his substantially full business time, attention
and efforts to the Company’s operations during his employment. During his employment, Baird will (i) work with other employees,
independent contractors, vendors, service providers and clients of the Company, as applicable, and its divisions, subsidiaries and affiliates
controlled by the Company in a respectful, competent and professional manner; and (ii) carry out his duties and responsibilities
hereunder in a competent and professional manner.
(c) Baird
agrees to comply with and be bound by such employment-related policies and practices as the Company implements, including all employee,
ethical and client conflict-of-interest policies, as such policies may be interpreted, adopted, revised or terminated from time to time
in the Company’s sole discretion. Such policies may or may not be in writing and may be communicated either in writing, verbally
and/or via electronic means (i.e., email).
3. Compensation.
During the term of Baird’s employment under this Agreement, Baird will be compensated as follows:
(a) Base
Salary. Baird will be paid an annual salary in the gross amount of $240,000. The base salary shall be reviewed annually by the Company’s
board of directors (the “Board”) or a subcommittee therefore, and may be adjusted from time to time by the Board or
such subcommittee in its sole discretion. Baird’s base salary will be paid in equal installments on the Company’s normal payroll
schedule. Baird will also be eligible to receive annual bonus compensation, payable at the sole discretion of the Board or a subcommittee
thereof.
(b) Equity
Grant. Baird will be granted the following equity awards:
(i) The
Company will grant Baird 60,766 restricted stock units (the “Pre-Closing RSU Award”), with such grant to be effective
as of no later than immediately prior to the closing of the Merger. The Pre-Closing RSU Award will be subject to the terms and conditions
of the Restricted Stock Unit Award Agreement substantially in the form attached hereto as Exhibit A (the “Pre-Closing
RSU Award Agreement”).
(ii) SportsMap
will grant Baird 373,630 restricted stock units (the “Post-Closing RSU Award”), with such grant to be effective as
of the effectiveness of the Form S-8 with respect to shares of SportsMap’s common stock issuable under the Infrared Cameras
Holdings, Inc. 2023 Incentive Award Plan (the “New Equity Plan”). The Post-Closing RSU Award will be subject to
the terms and conditions of the New Equity Plan and the Restricted Stock Unit Award Agreement substantially in the form attached hereto
as Exhibit B (the “Post-Closing RSU Award Agreement”).
For the avoidance of doubt,
in the event that the Merger Agreement is terminated pursuant to its terms or the transactions contemplated thereby are not consummated,
this paragraph 3 will not be effective and Baird will not have any right, title or interest to receive, or with respect to, any equity
or equity-based awards pursuant to this paragraph 3.
4. Benefits.
During the term of Baird’s employment under this Agreement, the Company will provide Baird with the following benefits:
(a) Vacation.
Baird will be eligible for paid vacation in accordance with the Company’s vacation policy, as in effect from time to time.
(b) Professional
Development. The Company will reimburse Baird for reasonable expenses incurred with respect to maintaining any licenses held or professional
development subject to approval by the Company’s President in advance of Baird incurring such expenses.
(c) Additional
Benefits. Baird will be eligible to participate in and receive the standard benefits provided to all Company employees, including,
but not limited to, coverage under its group health insurance plan, pursuant to the terms of such plans and programs. The Company provides
no assurance as to the adoption or continuance of any particular benefit plan or program.
5. Business
Expenses. The Company will reimburse Baird for all reasonable expenses incurred in the performance of his duties under this Agreement
upon presenting to the Company appropriate monthly expense reports with supporting documentation substantiating such expenses, in accordance
with the Company’s expense reimbursement policy as in effect from time to time.
6. Nondisclosure
and Protection of Proprietary Information.
(a) Baird
acknowledges that he will have access to the Company’s Proprietary and Trade Secret Information, as defined below. Both during employment
with the Company and at all times after such employment ends, Baird covenants to hold in the strictest confidence and not use or disclose
to any person, firm, corporation or other entity any of the Company’s Proprietary and Trade Secret Information, except as such disclosure
may be required (i) in connection with Baird’s work for the Company, (ii) as expressly authorized by Company policies
in effect from time to time, or (iii) except as protected by paragraph 8 below. Baird understands that this non-disclosure obligation
continues indefinitely after the termination of this Agreement.
(b) For
the purposes of this Agreement, the term “Proprietary and Trade Secret Information” shall mean any and all Company
confidential and/or proprietary knowledge, data or information of the Company, its affiliates, parents and subsidiaries, whether having
existed, now existing, or to be developed during the employment period, including, but not limited to: (i) information regarding
new products, marketing and selling, business plans, budgets and unpublished financial statements, prices and costs, margins, discounts,
credit terms, pricing and billing policies, quoting procedures, methods of obtaining business, contracts, forecasts, future plans and
potential strategies, financial projections and business strategies, operational plans, financing and capital-raising plans, activities
and agreements, internal services and operational manuals, methods of conducting Company business, suppliers and supplier information,
and purchasing; (ii) information regarding clients and potential clients of the Company; (iii) information regarding any of
the Company’s business partners and their services, including names, representatives, proposals, bids, contracts and their contents
and parties, the type and quantity of products and services received by the Company, and other non-public information relating to business
partners; (iv) information regarding personnel, employee lists, compensation, and employee skills; and (v) any other non-public
information which a competitor of the Company could use to the competitive disadvantage of the Company. The term “Proprietary and
Trade Secret Information” shall not include information that Baird acquired from a third party without a duty of confidentiality
or that is or becomes readily ascertainable to the public, in each case through lawful means and through no breach of this Agreement or
any other agreement.
7. Non-competition,
Non-Solicitation and Non-Disparagement. While this Agreement is in effect, and during Baird’s employment with the Company
and for a period of twelve (12) months following termination of Baird’s employment for any reason (or, with respect to subclause
(d), at all times thereafter), Baird covenants not to:
(a) engage
in, own, or have any interest in, whether alone or together with or on behalf of or through any other person or entity, whether as a sole
proprietor, partner, shareholder, agent, officer, director, employee, advisor, consultant, trustee, beneficiary or otherwise, in any business
or organization which competes in the same field with the Company, which is the development, manufacture, sales, service and deployment
of infrared (thermal) cameras and systems, including training in the use of such cameras and systems and software used therein, and/or
other business the Company may engage in during Baird’s employment with the Company, or may have taken material steps toward engaging
in as of the termination of such employment, anywhere in the world; or
(b) solicit
or attempt to hire, influence, or otherwise direct any employee, consultant, contractor, or other service provider of the Company or its
affiliates to leave or reduce their employment or engagement; or
(c) persuade
or attempt to persuade or otherwise induce any other person or entity which has a business relationship or planned relationship with the
Company at any time during Baird’s employment, and had a business relationship with the Company within the two-year period prior
to any such persuasion, interference or other action prohibited by this paragraph, to discontinue, reduce or adversely modify such business
relationship with the Company, or otherwise attempt to interfere with such business relationship of the Company; or
(d) make
statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take any action
which may, directly or indirectly, disparage the Company or any of its subsidiaries or affiliates or their respective officers, directors,
employees, advisors, businesses or reputations, except as protected by paragraph 8 below.
(e) The
parties acknowledge that the type and periods of restriction imposed in the provisions of this paragraph 7 are fair and reasonable and
are reasonably required for the protection of the Company and the goodwill associated with the business of the Company. If any of the
covenants in paragraph 7, or any part thereof, is hereafter construed to be invalid or unenforceable, the same shall not affect the remainder
of the covenant or covenants, which shall be given full effect, without regard to the invalid portions, and the invalid or unenforceable
provision or provisions shall be modified so as to be enforceable and valid consistent with the intent of the parties, to the fullest
extent allowed by law. Baird acknowledges that the Company conducts business world-wide. If any provision of this Agreement is deemed
to be overly restrictive, a court of proper jurisdiction may alter such provision to provide for the maximum protection of the Company
deemed reasonable under applicable law. Notwithstanding the foregoing, Baird acknowledges and agrees that all of the provisions in this
paragraph 7 do not impose an undue hardship on him, are fair and reasonable to him under the circumstances, and Baird therefore waives
any defense to the enforcement of the terms hereof on such grounds.
8. Protected
Activity. Nothing herein shall be construed to prohibit Baird from: (a) communicating directly with, cooperating with, or
providing information to, any government regulator, including, but not limited to, the U.S. Securities and Exchange Commission, the U.S.
Commodity Futures Trading Commission, the U.S. Department of Justice, the U.S. Equal Employment Opportunity Commission, or the U.S. National
Labor Relations Commission; or (b) discussing or disclosing information about unlawful acts in the workplace, such as harassment
or discrimination based on a protected characteristic or any other conduct that Baird has reason to believe is unlawful. Further, Baird
acknowledges that the Company has provided him with the following notice of immunity rights in compliance with the requirements of the
Defend Trade Secrets Act: (i) an individual shall not be held criminally or civilly liable under any Federal or State trade secret
law for the disclosure of a trade secret that is made in confidence to a Federal, State, or local government official or to an attorney
solely for the purpose of reporting or investigating a suspected violation of law, (ii) an individual shall not be held criminally
or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made in a complaint or other
document filed in a lawsuit or other proceeding, if such filing is made under seal, and (iii) an individual who files a lawsuit for
retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual
and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal;
and does not disclose the trade secret, except pursuant to court order.
9. Equitable
Relief. The parties acknowledge that each would suffer unique and irreparable injury in the event of a breach of the covenants
contained in paragraphs 6 and 7 of this Agreement, which breach could not be adequately compensated by the payment of damages. Accordingly,
in the event of any such breach by either party of the covenants contained in paragraphs 6 and 7, the parties agree that this Agreement
may be enforced by a decree of specific performance or an injunction, without the need to post bond, in addition to all other relief available
to the Company, including damages. The parties agree that an action to enforce paragraphs 6 and/or 7 may be brought in any state or federal
court of competent jurisdiction.
10. Termination
of Employment.
(a) Effective
as of the Effective Date, Baird’s employment hereunder shall be for a term (the “Employment Period”) commencing
on the Effective Date and ending on the first anniversary of the Effective Date (the “Initial Termination Date”), unless
earlier terminated by either Party for any reason or no reason, for no additional compensation. If not previously terminated, effective
as of the Initial Termination Date (and on every anniversary of the Initial Termination Date thereafter), the Employment Period shall
be automatically extended by 12 months unless a party has previously provided the other party with written notice that it does not wish
to have the Employment Period so extended at least 60 days prior to the end of the then-current Employment Period. Notwithstanding anything
to the contrary in the foregoing, Baird’s employment hereunder is terminable at will by the Company or by Baird at any time (for
any reason or for no reason), subject to the provisions of this paragraph 10.
(b) By
Baird. Baird may terminate employment at any time with ninety (90) days’ written notice to the Company (the “Resignation
Notice Period”). The Company will pay Baird all compensation and benefits earned through the Resignation Notice Period. In addition,
the Company may decide to pay Baird for part or all of the Resignation Notice Period in lieu of continuing to perform work on behalf of
the Company. The Company will not pay Baird any severance, nor any compensation or benefits, after the Resignation Notice Period expires.
(c) Without
Cause. The Company may terminate Baird’s employment any time without Cause (as defined below) with ninety (90) days prior written
notice to Baird (the “Termination Notice Period”). The Company will pay Baird all compensation and benefits earned
through the Termination Notice Period. In addition, the Company may decide to pay Baird for part or all of the Termination Notice Period
in lieu of continuing to perform work on behalf of the Company.
(d) With
Cause. The Company may also terminate Baird’s employment immediately without any further compensation or other payments with
“Cause”, which is defined to mean the occurrence of any of the following as determined in the sole discretion of the
Company:
(i) Baird
engages in conduct that materially impairs the Company’s business operations or causes material damage to the Company’s customers,
property, goodwill or business;
(ii) Baird
breaches any of the obligations contained in paragraph 2 of this Agreement in any respect, has been provided with notice and 60 days to
cure the breach, and has failed to cure (as determined by the Board in its sole discretion);
(iii) Baird
breaches his obligations contained in paragraphs 6 or 7 of this Agreement in any material respect;
(iv) Baird
engages in gross misconduct, including but not limited to, failure to perform Baird’s duties or to follow directives of the President
or the Board of Directors;
(v) Baird
intentionally and willfully violates the Company’s material written policies on workplace discrimination or harassment in any manner
that causes economic or reputational harm to either Employer, as determined by an independent investigation conducted under the direction
of the Board;
(vi) Baird
commits theft, fraud, misappropriation or embezzlement in connection with the Company’s business; or
(vii) Baird
is convicted of or has pleaded guilty or nolo contendere to a felony.
(e) Return
of Company Property. Baird shall return all property belonging to the Company (including, but not limited to, any Company-provided
laptops, vehicles, computers, cell phones, wireless electronic mail devices or other equipment, or documents and property belonging to
the Company) that are in his possession and control immediately upon his last day of employment.
(f) Termination
of Offices and Directorships. Upon termination of Baird’s employment for any reason, unless otherwise specified in a written
agreement between Baird and the Company, Baird shall be deemed to have resigned from all offices, directorships, and other employment
positions if any, then held with the Company, and shall take all actions reasonably requested by the Company to effectuate the foregoing.
11. Intellectual
Property. In consideration of the Company’s employment of Baird hereunder, Baird acknowledges that any and all patents,
licenses, copyrights, trade names, trademarks, assumed names, service marks, promotional/marketing/advertising campaigns, designs, logos,
slogans, computer software and other intellectual property developed, conceived or created by Baird in the course of his employment by
the Company, either individually or in collaboration with others, and whether or not during normal working hours or on the premises of
the Company (collectively, “Developments”) shall be, as between the Company and Baird, the sole and absolute property
of the Company, and Baird hereby assigns and agrees to assign in the future (when any such Developments are first reduced to practice
or first fixed in a tangible medium, as applicable) to the Company all his right, title and interest in and to any and all Developments
whether or not patentable or registrable under copyright or similar statutes and agrees that he will, at the Company’s request and
cost, take whatever action is necessary to secure the rights thereto by patent, copyright, assignment or otherwise to the Company. Baird
agrees to make full and prompt disclosure to the Company of all such Developments arising during his employment. Baird recognizes that
this Agreement will not be deemed to require assignment of any Developments that he developed entirely on his own time without using the
Company’s equipment, supplies, facilities, trade secrets, or confidential information, except for those Developments that either
(i) relate to the Company’s actual or anticipated business, research or development; or (ii) result from or are connected
with work performed by Baird for the Company.
12. Dispute
Resolution.
(a) Except
as excluded below, any dispute, controversy or claim arising out of, relating to, or in connection with, this Agreement or any breach,
termination or validity thereof (a “Dispute”) shall be finally settled by arbitration. The arbitration shall be conducted
in accordance with the Employment Arbitration Rules & Mediation Procedure of the American Arbitration Association (the “Rules”)
in effect at the time of the arbitration and available at https://www.adr.org/employment, except as they may be modified herein or by
mutual agreement of the parties. The seat of the arbitration shall be Delaware.
(b) The
arbitration shall be conducted by one arbitrator in accordance with the appointment provisions set out in the Rules. The arbitration award
shall be in writing and shall be final and binding on the parties. The award may include an award of costs, including reasonable attorney’s
fees and disbursements. Judgment upon award may be entered by any court having jurisdiction thereof or having jurisdiction over the parties
or their assets.
(i) Notwithstanding
anything in this Agreement to the contrary, the arbitration provisions of this Agreement shall be governed by and enforceable pursuant
to the Federal Arbitration Act, and, in all other respects, the arbitrator shall apply the substantive laws of the state designated in
paragraph 19, with the same statutes of limitation and available remedies that would apply if the claims were brought in a court of law
of competent jurisdiction. Either party may bring an action in court to compel arbitration under this Agreement and to enforce an arbitration
award.
(c) To
the maximum extent permitted by applicable law, the Company and Baird shall equally share all costs unique to arbitration, including without
limitation arbitration administrative fees, arbitrator compensation and expenses, and costs of any witnesses called by the arbitrator.
Unless otherwise ordered by the arbitrator under applicable law, the Company and Baird shall each bear his, her, their or its own expenses,
such as expert witness fees, filing fees, and attorneys’ fees and costs. Nothing herein shall prevent the Company or Baird from
seeking a statutory award of reasonable attorneys’ fees and costs.
(i) THE
COMPANY AND BAIRD EACH WAIVE HIS OR ITS RIGHT TO A TRIAL BY JURY OF ANY COVERED CLAIM. BAIRD WAIVES HIS RIGHT TO BRING ANY COVERED CLAIM
AS PART OF OR IN CONNECTION WITH A CLASS OR COLLECTIVE ACTION.
(ii) Notwithstanding
the foregoing, this paragraph 12 shall not preclude either party from pursuing a court action for the sole purpose of obtaining a temporary
restraining order or a preliminary injunction in circumstances in which such relief is appropriate (including to enforce the Company’s
rights in the event of a breach of paragraphs 6 or 7 above. Further, this arbitration agreement shall not apply to any: (i) claims
for unemployment and workers’ compensation benefits; (ii) sexual harassment and sexual assault disputes arising under federal,
state, local, or tribal law, unless Baird elects to arbitrate such disputes; (iii) claims arising under the National Labor Relations
Act or which are brought before the National Labor Relations Board; (iv) claims brought before the Equal Employment Opportunity Commission
or similar state or local agency, if Board is required to exhaust Baird’s administrative remedies; provided, that any appeal from
an award or denial of an award by any such agency or any further action upon receipt of a right-to-sue letter shall be arbitrated pursuant
to the terms of this Agreement; and (v) any other claim, which by law cannot be subject to mandatory arbitration.
13. Notices.
(a) Every
notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom
it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein
provided, including via e-mail, provided that, unless and until some other address be so designated, all notices or communications by
Baird to the Company shall be mailed, e-mailed or delivered to the Company at its principal offices, and all notices or communications
by the Company to Baird may be given to Baird personally or may be mailed or e-mailed to Baird at his last known street or e-mail address,
as reflected in the Company’s records.
(b) Any
notice so addressed shall be deemed to be given: (i) if delivered by hand, or sent by e-mail (and subject to an electronic receipt
or other proof of transmission thereof), on the date of such delivery or transmission; (ii) if mailed by overnight mail, on the first
business day following the date of such mailing; and (iii) if mailed by registered or certified mail, on the third business day after
the date of such mailing.
14. Entire
Agreement; No Amendment. As of the Effective Date, this Agreement, together with the Pre-Closing RSU Award Agreement and the Post-Closing
RSU Award Agreement, contains the entire understanding between the parties hereto with respect to the subject matter hereof and supersedes
any prior understandings, agreements or representations, written or oral, relating to the subject matter hereof including, without limitation,
the Original Agreement, which is terminated and of no further force or effect, except with respect to any non-conflicting restrictive
covenants that Baird may have separately agreed to, which shall continue in full force and effect pursuant to their terms and be read
together with the covenants in this Agreement to provide maximum coverage to the Company. The terms of this Agreement may not be amended
or modified unless done so in writing and signed by the Company and Baird.
15. Effect
of Waiver. The failure of either party at any time to require performance by the other party of any provision hereunder shall
in no way affect the right of that party thereafter to enforce the same, nor shall it affect any other party’s right to enforce
the same, or to enforce any of the other provisions in this Agreement; and the waiver by either party of a breach of any provision of
this Agreement shall not operate as or be construed a waiver of any subsequent breach thereof.
16. Assignment.
The rights and benefits of the Company under this Agreement shall be transferable, and all covenants and agreements hereunder shall enure
to the benefit of and be binding on the Company and its successors or assigns. This Agreement may not be assigned by Baird.
17. No
Conflict. Baird represents and warrants that he is not subject to any agreement, instrument, order, judgment or decree of any
kind, or any other restrictive agreement of any character, which would prevent him from entering into this Agreement or which would be
breached by Baird upon the performance of his duties pursuant to this Agreement. Baird agrees not to enter into any agreement or obligation,
whether written or oral, in conflict with the terms or conditions of this Agreement.
18. Severability;
Survival. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement. The provisions of paragraphs 6 through and including 9, paragraphs 11 through and including
19, and paragraph 21 hereof shall survive the termination of this Agreement.
19. Governing
Law. This Agreement is to be construed under the laws of the State of Delaware.
20. Counterparts.
This Agreement may be executed in counterparts, each of which will be deemed an original, and the counterparts together constitute
one and the same agreement, notwithstanding that all of the parties are not signatory to the original or the same counterpart.
21. Section 409A.
This Agreement is intended to be exempt from Section 409A of the Internal Revenue Code and the Treasury Regulations promulgated thereunder
(“Section 409A”) to the greatest extent possible, to comply with Section 409A to the extent it is applicable
and is to be interpreted and operated consistently with those intentions. All payments of nonqualified deferred compensation subject to
Section 409A to be made upon a termination of employment under this Agreement may only be made upon Baird’s “separation
from service” within the meaning of Section 409A. Any right to a series of installment payments pursuant to this Agreement
is to be treated as a right to a series of separate payments. Notwithstanding anything to the contrary in this Agreement, no compensation
or benefits shall be paid to Baird during the six-month period following Baird’s “separation from service” if the Company
determines that paying such amounts at the time or times indicated in this Agreement would be a prohibited distribution under Section 409A(a)(2)(B)(i) of
the Code. If the payment of any such amounts is delayed as a result of the previous sentence, then on the first day of the seventh month
following the date of separation from service (or such earlier date upon which such amount can be paid under Section 409A without
resulting in a prohibited distribution, including as a result of Baird’s death), the Company shall pay Baird a lump-sum amount equal
to the cumulative amount that would have otherwise been payable to Baird during such period.
22. No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the Company and Baird to
express their mutual intent, and no rule of law or contract interpretation that provides that in the case of ambiguity or uncertainty
a provision should be construed against the draftsperson will be applied against any party hereto. The provisions of this Agreement shall
be construed according to their fair meaning and neither for nor against any party hereto irrespective of which party caused such provisions
to be drafted. Each of the Company and Baird acknowledges that it or he has been represented by an attorney or advised to seek the advice
of an attorney in connection with the preparation and execution of this Agreement.
23. Sarbanes-Oxley
Act of 2002. Notwithstanding anything herein to the contrary, if the Company determines, in its good faith judgment, that any
transfer or deemed transfer of funds hereunder is likely to be construed as a personal loan prohibited by Section 13(k) of the
Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, then such transfer or deemed transfer
shall be provided to Baird as compensation (and not as a loan) to Baird (and as such shall be subject to tax withholding obligations).
24. Withholding.
The Company may withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation.
[Signature page follows]
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INFRARED CAMERAS, INC. |
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By: |
/s/ Gary Strahan |
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Gary Strahan |
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CEO |
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Dated: December 19, 2023 |
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INFRARED CAMERAS HOLDINGS, INC. |
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By: |
/s/ Gary Strahan |
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Gary Strahan |
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Founder & CEO |
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Dated: December 19, 2023 |
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PETER BAIRD |
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/s/ Peter Baird |
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Peter Baird |
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Dated: December 19, 2023 |
Exhibit 10.11
INFRARED CAMERAS HOLDINGS, INC.
RESTRICTED
STOCK Unit Grant Notice (NON-PLAN AWARD)
Infrared Cameras Holdings, Inc., a Delaware
corporation (the “Company”), has granted to the participant listed below (“Participant”)
the Restricted Stock Units (the “RSUs”) described in this Restricted Stock Unit Grant Notice (this “Grant
Notice”). The RSUs are granted as a stand-alone award and are not granted under or pursuant to the Infrared Cameras Holdings, Inc.
2020 Equity Incentive Plan (as amended, the “Plan”) and shall not constitute an award granted under or pursuant
to the Plan. Notwithstanding the foregoing, the terms, conditions and definitions set forth in the Plan shall apply to the RSUs as though
the RSUs had been granted under the Plan, and the RSUs shall be subject to the terms, conditions and definitions contained therein, which
are hereby incorporated into this Grant Notice by reference, and the Restricted Stock Unit Agreement attached hereto as Exhibit A
(the “Agreement”). In addition, capitalized terms used but not otherwise defined in this Grant Notice or
the Agreement shall have the meanings set forth in the Plan, a copy of which Participant acknowledges having received.
For the avoidance of doubt, the RSUs shall not
be counted for purposes of calculating the aggregate number of shares of Class B Common Stock that may be issued or transferred
pursuant to awards under the Plan. In the event of any inconsistency between the Plan and this Grant Notice, the terms of this Grant
Notice shall control.
Participant: |
[_______________] |
Grant
Date: |
[___________],
2023 |
Number
of RSUs: |
[____________] |
Type
of Shares: |
Class B
Common Stock |
Vesting
Schedule: |
One
hundred percent (100%) of the RSUs will vest on January 1, 2024 (the “Vesting Date”), subject to Participant’s
continued employment through the Vesting Date. |
Settlement
Dates: |
Vested
RSUs will be paid in Shares in 12 equal monthly installments, with the first installment being paid on December 20, 2024. |
By accepting (whether in
writing, electronically or otherwise) the RSUs, Participant agrees to be bound by the terms of this Grant Notice, the Plan and the Agreement.
Participant has reviewed the Plan, this Grant Notice and the Agreement in their entirety, has had an opportunity to obtain the advice
of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, this Grant Notice and the Agreement.
Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board upon any questions
arising under the Plan, this Grant Notice or the Agreement.
Infrared
Cameras HOLDINGS, INC. |
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PARTICIPANT |
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By: |
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Name:
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[________________________] |
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Title: |
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[Signature Page to Restricted Stock Unit
Agreement]
Exhibit A
RESTRICTED
STOCK UNIT AGREEMENT (NON-PLAN AWARD)
Capitalized terms not specifically
defined in this Restricted Stock Unit Agreement (this “Agreement”) have the meanings specified in the Grant
Notice or, if not defined in the Grant Notice, in the Plan.
Article I.
general
1.1 Award
of RSUs. The Company has granted the RSUs to Participant effective as of the Grant Date set
forth in the Grant Notice (the “Grant Date”). Each RSU represents the right to receive one share of Class B
Common Stock (each, a “Share”) as set forth in this Agreement.
1.2 Incorporation
of Terms of Plan. The RSUs are granted as a stand-alone award and are not granted under or pursuant to the Plan, and shall not constitute
an award granted under or pursuant to the Plan. Notwithstanding the foregoing, the terms, conditions and definitions set forth in the
Plan shall apply to the RSUs as though the RSUs had been granted under the Plan, and the RSUs shall be subject to the terms, conditions
and definitions contained therein, which are hereby incorporated into this Award Agreement by reference. Except as expressly set forth
herein, in the event of any inconsistency between the Plan and this Agreement, the terms of this Agreement will control.
1.3 Unsecured
Promise. The RSUs will at all times prior to settlement represent an unsecured Company obligation payable only from the Company’s
general assets.
1.4 Defined
Terms. As used in this Agreement:
(a) “Award”
means this award of RSUs.
(b) “BCA”
shall mean that certain Business Combination Agreement by and among SportsMap Tech Acquisition Corp., ICH Merger Sub Inc. and the
Company, dated as of December 5, 2022 and as amended as of June 26, 2023 and September 17, 2023.
(c) “Change
in Control” means a Change in Control (as defined in the Plan) that (i) occurs following the Effective Time (as defined
in the BCA) and (ii) constitutes a “change in control event” (within the meaning of Section 409A). For the avoidance
of doubt, the closing of the transactions contemplated by the BCA shall not constitute a Change in Control for purposes of this Award.
(d) “Disability”
means “permanent and total disability” as defined in Section 22(e)(3) of the Code.
(e) “Good
Reason” means the occurrence of any one or more of the following events without Participant’s prior written consent,
unless the Company fully corrects the circumstances constituting Good Reason (provided such circumstances are capable of correction)
as provided below: (i) a material diminution in Participant’s annual base salary, other than as part of an across-the-board
reduction applicable to the Company’s senior executives, and further excluding any voluntary reductions in his annual base salary;
or (ii) a material diminution in Participant’s title, authority or duties.
Notwithstanding the foregoing,
Participant will not be deemed to have resigned for Good Reason unless (1) Participant provides the Company with written notice
setting forth in reasonable detail the facts and circumstances claimed by Participant to constitute Good Reason within 45 days after
the date of the occurrence of any event that Participant knows or should reasonably have known to constitute Good Reason, (2) the
Company fails to cure such acts or omissions within 30 days following its receipt of such notice, and (3) the effective date of
Participant’s termination for Good Reason occurs no later than 60 days after the expiration of the Company’s cure period.
(f) “Qualifying
Termination” means a termination of Participant’s employment (i) by the Company without Cause, (ii) by
Participant for Good Reason, or (iii) due to Participant’s death or Disability.
(g) “Section 409A”
shall mean Code Section 409A and the Treasury Regulations promulgated thereunder.
Article II.
VESTING; SETTLEMENT
2.1 General
Vesting. The RSUs shall vest and become nonforfeitable, if at all, in accordance with the terms and conditions set forth in the Grant
Notice. In addition, if Participant experiences a Qualifying Termination, then any then-unvested RSUs shall become vested as of the date
of such Qualifying Termination, subject to Participant’s (or Participant’s estate’s) execution and non-revocation of
a release of claims in a form prescribed by the Company (a “Release”).
2.2 Settlement.
(a) The
RSUs will be paid in Shares, to the extent vested, within 30 days following the earlier to occur of: (i) the applicable Settlement
Date, or (ii) a Change in Control. Notwithstanding anything to the contrary contained herein, the exact payment date of any RSUs
shall be determined by the Company in its sole discretion (and Participant shall not have a right to designate the time of payment).
(b) Notwithstanding
the foregoing, the Company may delay any payment under this Agreement that the Company reasonably determines would violate applicable
law until the earliest date the Company reasonably determines the making of the payment will not cause such a violation (in accordance
with Treasury Regulation Section 1.409A-2(b)(7)(ii)); provided the Company reasonably believes the delay will not result in the
imposition of excise taxes under Section 409A.
2.3 Forfeiture
and Termination of RSUs. In the event of Participant’s Termination of employment prior to the Vesting Date for any reason other
than a Qualifying Termination, or if Participant does not timely execute the Release or revokes the Release, in any case, then all unvested
RSUs will automatically be forfeited and terminated without consideration therefore, except as otherwise determined by the Company or
provided in a binding written agreement between Participant and the Company.
Article III.
TAXATION AND TAX WITHHOLDING
3.1 Representation.
Participant represents to the Company that Participant has reviewed with Participant’s own tax advisors the tax consequences of
this Award and the transactions contemplated by the Grant Notice and this Agreement. Participant is relying solely on such advisors and
not on any statements or representations of the Company or any of its agents.
3.2 Tax
Withholding.
(a) The
Company shall withhold, or cause to be withheld, Shares otherwise issuable under this Award in satisfaction of any applicable FICA withholding
tax obligation (which may arise prior to settlement of the RSUs). To the extent that any FICA tax withholding obligations arise
in connection with the RSUs prior to the date on which on which such RSUs should otherwise become payable to Participant, then the Company
may accelerate the payment of a number of RSUs sufficient to satisfy (but not in excess of) such tax withholding obligations and any
tax withholding obligations associated with such accelerated payment, and the Company or an affiliate may withhold such amounts in satisfaction
of such withholding obligations.
(b) By
accepting this Award, Participant understands and agrees that the Company, on Participant’s behalf, shall instruct the Company’s
broker, transfer agent or stock plan administrator, as applicable (the “Agent”), to (i) sell, at the then-applicable
market price, that number of Shares issued upon the settlement of the Award as necessary to satisfy any applicable statutory federal,
state and local withholding obligations (other than FICA withholding obligations) required with respect to any taxable event arising
in connection with the RSUs and all applicable fees and commissions due to, or required to be collected by, the Agent with respect thereto,
and (ii) to pay the cash proceeds of such sale(s) to the Company, with such sales to occur on or as soon as Agent determines
is reasonably practicable after the date on which the applicable tax withholding obligation arises (a “Sell to Cover”).
The Company shall then make a cash payment equal to the required tax withholding from the cash proceeds of such sale(s) directly
to the appropriate taxing authorities. The Company shall not be obligated to deliver any Shares to Participant or Participant’s
legal representative unless and until Participant or Participant’s legal representative shall have paid or otherwise satisfied
in full the amount of all federal, state and local taxes applicable to the taxable income of Participant resulting from the grant, vesting
or settlement of the RSUs.
(c) The
number of Shares which may be so withheld or surrendered pursuant to Section 3.2(a) above shall be limited to the number of
Shares which have a fair market value on the date of withholding no greater than the aggregate amount of such liabilities based on the
maximum individual statutory withholding rates in Participant’s applicable jurisdictions for federal, state, local and foreign
income tax and payroll tax purposes that are applicable to such taxable income.
(d) Participant
acknowledges that Participant is ultimately liable and responsible for all taxes owed in connection with the RSUs, regardless of any
action the Company or any Subsidiary takes with respect to any tax withholding obligations that arise in connection with the RSUs. Neither
the Company nor any Subsidiary makes any representation or undertaking regarding the treatment of any tax withholding in connection with
the awarding or payment of the RSUs or the subsequent sale of Shares. The Company and its Subsidiaries do not commit and are under no
obligation to structure the RSUs to reduce or eliminate Participant’s tax liability.
3.3 Section 409A.
(a) To
the extent applicable, this Agreement shall be interpreted in accordance with Section 409A, including without limitation any such
regulations or other guidance that may be issued after the effective date of this Agreement.
(b) Section 17.2
of the Plan shall apply to the RSUs and this Agreement. For purposes of Section 409A, each RSU (and the right to payment with respect
to each RSU) is to be treated as a right to a separate payment.
Article IV.
OTHER PROVISIONS
4.1 Transfer
Restrictions.
(a) In
addition to any limitations set forth in the Plan, Participant agrees and acknowledges that Participant will not transfer in any manner
the Shares issued upon settlement of the RSUs granted pursuant to this Agreement unless (i) the transfer is pursuant to an effective
registration statement under the Securities Act or the rules and regulations in effect thereunder, or (ii) counsel for the
Company shall have concluded that no such registration is required because of the availability of an exemption from registration under
the Securities Act. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary
to conform to such laws, rules and regulations.
(b) Any
certificate representing the Shares issued pursuant to this Agreement prior to (i) the Company becoming required to file periodic
reports pursuant to Section 12 of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”),
or (ii) the Shares becoming listed on one or more National Securities Exchanges (within the meaning of the Exchange Act) or quoted
on NASDAQ, the New York Stock Exchange or a successor quotation system, shall bear the following legend (or a legend substantially equivalent
thereto), in addition to any other legend required by law or otherwise:
“THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (the “ACT”), OR ANY APPLICABLE STATE SECURITIES
LAWS AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. THE SHARES
REPRESENTED BY THIS CERTIFICATE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED
UNDER THE ACT AND SUCH LAWS OR, IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES,
SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.
THE SHARES REPRESENTED BY THIS CERTIFICATE
MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS
ON FILE WITH THE SECRETARY OF THE COMPANY. SUCH TRANSFER RESTRICTIONS ARE BINDING ON TRANSFEREES OF THESE SHARES.”
4.2 Representations
of Participant. In connection with Participant’s execution of this Agreement, such Participant hereby represents that:
(a) (i) Participant
is an “accredited investor” as that term is defined in Rule 501 of Regulation D promulgated by the Commission under
the Securities Act and (ii) Participant has either (A) preexisting personal or business relationships with the Company or any
of its officers, directors or controlling persons, or (B) the capacity to protect his own interests in connection with the RSUs
granted hereunder by virtue of the business or financial expertise of himself or of professional advisors to Participant who are unaffiliated
with and who are not compensated by the Company or any Affiliate, directly or indirectly.
(b) The
RSUs granted hereunder and any Shares issued pursuant to the RSUs (collectively, the “Security Interests”)
will be acquired for Participant’s own account for investment only, and not with a view to, or for sale in connection with, any
distribution of Security Interests in violation of the Securities Act, or any rule or regulation under the Securities Act.
(c) Participant
is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to
permit Participant to evaluate the merits and risks of Participant’s investment in the Company and to reach an informed and knowledgeable
decision to acquire the Security Interests.
(d) Participant
understands that the Company’s Security Interests have not been registered under the Securities Act by reason of a specific exemption
therefrom, which exemption depends upon, among other things, the bona fide nature of Participant’s investment intent as expressed
herein. In this connection, Participant understands that, in the view of the Securities and Exchange Commission (the “Commission”),
the statutory basis for such exemption may not be present if Participant’s representations meant that Participant’s present
intention was to hold the Securities Interests for a minimum capital gains period under applicable tax statutes, for a deferred sale,
for a market rise, for a sale if the market does not rise, or for a year or any other fixed period in the future.
(e) Participant
understands that the Company’s Security Interests are “restricted securities” under applicable U.S. federal and state
securities laws and that, pursuant to these laws, the Security Interests must be held indefinitely unless they are subsequently registered
under the Securities Act or an exemption from such registration is available. Participant further acknowledges and understands that the
Company is under no obligation to register or qualify the Security Interests for resale. Participant further acknowledges that if an
exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to,
the time and manner of sale, the holding period for the Security Interests, and requirements relating to the Company which are outside
of Participant’s control, and which the Company is under no obligation and may not be able to satisfy.
(f) Participant
acknowledges that no assurances or representations are made by the Company as to the present or future market value of the Security Interests
or as to the business, affairs, financial condition or prospects of the Company. Participant acknowledges that the Security Interests
not currently publicly traded, and that the Company has made no assurances that the Security Interests will ever become publicly traded.
Neither Participant nor his estate, personal representatives or any other successor or transferee shall have any registration rights
with respect to any public offering of securities of the Company, its Subsidiaries, Affiliates, successors or assigns.
4.3 Adjustments.
Participant acknowledges that the RSUs and the Shares subject to the RSUs are subject to adjustment, modification and termination in
certain events as provided in this Agreement and Section 4.2 of the Plan. In addition, the RSUs and the Shares subject to the RSUs
shall be subject to the provisions of Section 2.2(c) of the BCA.
4.4 Clawback.
The Award and the Shares issuable hereunder shall be subject to any clawback or recoupment policy in effect on the Grant Date or as may
be adopted or maintained by the Company to the extent required in order to comply with applicable law, including the Dodd-Frank Wall
Street Reform and Consumer Protection Act and any rules or regulations promulgated thereunder. The Company and Participant acknowledge
that neither this Section 4.4 nor Section 8.5(b) of the Plan are intended to limit any clawback and/or disgorgement of
the Award and/or the Shares issuable hereunder pursuant to Section 304 of the Sarbanes-Oxley Act of 2002.
4.5 Notices.
Any notice by Participant to the Company under this Agreement shall be in writing and shall be deemed duly given only upon receipt of
the notice by the Company at its principal executive offices addressed to its President. Any notice by the Company to Participant shall
be in writing or by electronic transmission and shall be deemed duly given if mailed or sent by electronic transmission to Participant’s
email address at the Company, or to such other address as Participant may later designate by notice given to the Company.
4.6 Titles.
Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
4.7 Conformity
to Securities Laws. Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent
necessary with all applicable laws and, to the extent applicable laws permit, will be deemed amended as necessary to conform to applicable
laws.
4.8 Successors
and Assigns. The Company may assign any of its rights under this Agreement to a single or multiple assignees, and this Agreement
will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in this Agreement
or the Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and
assigns of the parties hereto.
4.9 Limitations
Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject
to Section 16 of the Exchange Act, the Plan, the Grant Notice, this Agreement and the RSUs will be subject to any additional limitations
set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3)
that are requirements for the application of such exemptive rule. To the extent applicable laws permit, this Agreement will be deemed
amended as necessary to conform to such applicable exemptive rule.
4.10 Entire
Agreement. The Plan, the Grant Notice and this Agreement (including any exhibit hereto) constitute the entire agreement of the parties
and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter
hereof.
4.11 Agreement
Severable. In the event that any provision of the Grant Notice or this Agreement is held illegal or invalid, the provision will be
severable from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining provisions
of the Grant Notice or this Agreement.
4.12 Limitation
on Participant’s Rights.
(a) Participation
in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the
part of the Company as to amounts payable and may not be construed as creating a trust. Neither the Plan nor any underlying program,
in and of itself, has any assets. Participant will have only the rights of a general unsecured creditor of the Company with respect to
amounts credited and benefits payable, if any, with respect to the RSUs, and rights no greater than the right to receive cash or the
Shares as a general unsecured creditor with respect to the RSUs, as and when settled pursuant to the terms of this Agreement.
(b) Except
as provided in Section 8.7 of the Plan, neither the Participant nor any person claiming under or through the Participant will have
any of the rights or privileges of a stockholder of the Company in respect of any Shares that may become deliverable hereunder unless
and until such Shares have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered in
certificate or book entry form to the Participant or any person claiming under or through the Participant. Any dividend equivalents granted
in connection with the RSUs issued hereunder pursuant to Section 8.7 of the Plan, and any amounts that may become distributable
in respect thereof, shall be treated separately from such RSUs and the rights arising in connection therewith for purposes of the designation
of time and form of payments required by Section 409A.
4.13 Not
a Contract of Employment. Nothing in the Plan, the Grant Notice or this Agreement confers upon Participant any right to continue
in the employ or service of the Company or any Subsidiary or interferes with or restricts in any way the rights of the Company and its
Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason
whatsoever, with or without cause, except to the extent expressly provided otherwise in a written agreement between the Company or a
Subsidiary and Participant.
4.14 Governing
Law. The validity, construction and effect of this Agreement shall be governed by the laws of the State of Delaware.
4.15 Counterparts.
The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to applicable law,
each of which will be deemed an original and all of which together will constitute one instrument.
* * * * *
Exhibit 10.12
2020 EQUITY INCENTIVE PLAN
OF
INFRARED CAMERAS HOLDINGS, INC.
As Amended and Restated effective December 19,
2023
The purposes of the 2020 Equity
Incentive Plan of Infrared Cameras Holdings, Inc., a Delaware corporation, are to encourage eligible employees, directors, consultants
and advisors of the Company and its Subsidiaries to increase their efforts to make the Company more successful, to provide an additional
inducement for such persons to remain with the Company, to reward such persons by providing an opportunity to acquire shares of the Common
Stock of the Company on favorable terms and to provide a means through which the Company may attract able persons to enter the service
of the Company. The Plan permits the grant and award of Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units,
Dividend Equivalents, Stock Awards and other Stock-based awards and Stock-related awards.
SECTION 1.
DEFINITIONS
The following words have the
following meanings unless a different meaning plainly is required by the context:
1.1 "Affiliate"
means any organization controlling, controlled by or under common control with the Company.
1.2 "Board" means the Board of Directors of the Company.
1.3 "Cause"
means (1) conviction of, or the entry of a plea of guilty or no contest to, a felony or any other crime that causes the Company
or its Affiliates public disgrace or disrepute, or adversely affects the Company's or its Affiliates' operations, condition (financial
or otherwise), prospects or interests, (2) gross negligence or willful misconduct with respect to the Company or any of its Affiliates,
including, without limitation fraud, embezzlement, theft or dishonesty in the course of his or her employment; (3) alcohol abuse
or use of controlled drugs other than in accordance with a physician's prescription; (4) refusal, failure or inability to perform
any material obligation or fulfill any duty (other than any duty or obligation of the type described in clause (6) below) to the
Company or any of its Affiliates (other than due to a disability), which failure, refusal or inability is not cured within 10 days after
delivery of notice thereof; (5) material breach of any agreement with or duty owed to the Company or any of its Affiliates; or (6) any
breach of any obligation or duty to the Company or any of its Affiliates (whether arising by statute, common law, contract or otherwise)
relating to confidentiality, noncompetition, nonsolicitation or proprietary rights. Notwithstanding the foregoing, if a Participant and
the Company (or any of its Affiliates) have entered into an employment agreement, consulting agreement or other similar agreement that
specifically defines "cause," then with respect to such Participant, "Cause" shall have the meaning defined in that
employment agreement, consulting agreement or other agreement.
1.4 "Change
in Control" means any transaction or series of related transactions (as a result of a tender offer, merger, consolidation or
otherwise) that results in, or that is in connection with, (a) any Third Party Purchaser or "group" (within the meaning
of Section 13(d)(3) of the Exchange Act of Third Party Purchasers acquiring beneficial ownership, directly or indirectly, of
a majority of the then issued and outstanding Class A Common Stock or (b) the sale, lease, exchange, conveyance, transfer or
other disposition (for cash, shares of stock, securities or other consideration) of all or substantially all of the property and assets
of the Company and its subsidiaries (if any), on a consolidated basis, to any Third Party Purchaser or "group" (within the meaning
of Section 13(d)(3) of the Exchange Act) of Third Party Purchasers (including any liquidation, dissolution or winding up of
the affairs of the Company, or any other distribution made, in connection therewith). "Third Party Purchaser" means any
person who, immediately prior to the contemplated transaction, (I) does not directly or indirectly own or have the right to acquire
any outstanding Class A Common Stock of the Company or (II) is not a permitted transferee of any person who directly or indirectly
owns or has the right to acquire any Class A Common Stock of the Company.
1.5 "Code"
means the Internal Revenue Code of 1986, as amended. Each reference herein to a section or sections of the Code shall, unless otherwise
noted, be deemed to include a reference to the rules and regulations issued under such section or sections of the Code.
1.6 "Committee"
means a Committee appointed by the Board, consisting of not less than two members of the Board. If the Board does not appoint a Committee,
then the Board shall be deemed to be the Committee for purposes of this Plan.
1.7 "Common
Stock" means the Company’s Class B non-voting common stock, par value $0.001 per share.
1.8 "Company"
means Infrared Cameras Holdings, Inc., a Delaware corporation, and its successors and assigns.
1.9 "Disability"
means that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment; provided, however, for purposes of determining the term of an incentive Stock Option pursuant to Section 6.2(e)(ii) hereof,
the term Disability shall have the meaning ascribed to it under Section 22(e)(3) of the Code. The determination of whether an
individual has a Disability shall be determined under procedures established by the Committee. Except in situations where the Committee
is determining Disability for purposes of the term of an incentive Stock Option pursuant to Section 6.2(e)(ii) hereof within
the meaning of Section 22(e)(3) of the Code, the Committee may rely on any determination that a Participant is disabled for
purposes of benefits under any long-term disability plan maintained by the Company or any Affiliate in which a Participant participates,
or by a determination of permanent and total disability made by the Social Security Administration.
1.10 "Dividend
Equivalent" means the right, granted under the Plan, to receive cash, shares of Common Stock, other Incentive Awards or other
property equal in value to all or a specified portion of dividends paid with respect to a specified number of shares of Common Stock.
1.11 "Employee" means an employee of the Company or one of its Subsidiaries.
1.12 "Exchange Act" means the Securities Exchange Act of 1934, as amended.
1.13 "Fair
Market Value" as of any date means: (i) if the Common Stock is not publicly traded, the value of such shares of Common Stock
on that date, as determined by the Committee in its sole and absolute discretion, after taking into consideration all factors which it
deems appropriate, including without limitation, Sections 409A and 422 of the Code; (ii) if the Common Stock is publicly traded,
the closing price for a share of Common Stock on the principal national securities exchange on which the shares are listed or admitted
to trading or, if the Common Stock is not listed or admitted to trading on any national securities exchange, but shares of Common Stock
are traded in the over-the-counter market, the closing sale price of a share or, if no sale is publicly reported, the average of the closing
bid and asked quotations for a share, as reported by Nasdaq or any comparable system or, if the shares are not listed on Nasdaq or a comparable
system, the closing sale price of a share or, if no sale is publicly reported, the average of the closing bid and asked prices, as furnished
by two members of the NASD who make a market in the shares selected from time to time by the Company for that purpose.
1.14 "Incentive
Award" means the award or grant of a Stock Option, a Stock Appreciation Right, Restricted Stock, a Restricted Stock Unit, a Dividend
Equivalent, a Stock Award, or another Stock-based or Stock-related award, to a Participant pursuant to the Plan.
1.15 "Nasdaq"
means the NASDAQ National Market, or if the Common Stock is not listed for trading on the NASDAQ National Market on the date in question,
then such other United States-based quotation system or stock exchange on which the Common Stock may be traded on the date in question.
1.16 "Participant"
means a director, Employee, consultant or advisor who is granted an Incentive Award under the Plan.
1.17 "Person"
has the same meaning as set forth in Sections 13(d) and 14(d)(2) of the Exchange Act.
1.18 "Plan"
means the Infrared Cameras Holdings, Inc. Equity Incentive Plan of 2020 as set forth herein, as it may be amended from time to
time.
1.19 "Restricted
Period" means the period of time during which Restricted Stock, Restricted Stock Units or other Stock-based or Stock-related
awards that are awarded under the Plan are subject to the risk of forfeiture, restrictions on transfer and other restrictions or conditions
pursuant to Sections 8 or 9. The Restricted Period may differ among Participants and may have different expiration dates with respect
to shares of Common Stock covered by the same Incentive Award.
1.20 "Restricted
Stock" means Common Stock awarded to a Participant pursuant to Section 8 of the Plan while such Common Stock remains subject
to the risk of forfeiture, divestment, restrictions on transfer and other restrictions or conditions.
1.21 "Restricted
Stock Unit" means an award to a Participant pursuant to Section 8 of the Plan and described as a “Restricted Stock
Unit” in Section 8.
1.22 "Securities Act" means the Securities Act of 1933, as amended.
1.23 "Stock
Appreciation Right" or "SAR" means a right awarded to a Participant pursuant to Section 7 of the Plan,
which shall entitle the Participant to receive cash, Common Stock, other property or a combination thereof, as determined by the Committee,
in an amount equal to or otherwise based on the excess of (a) the Fair Market Value of a share of Common Stock at the time of exercise
over (b) the exercise price of the right, as established by the Committee on the date the award is granted.
1.24 "Stock
Award" means an award of Common Stock awarded to a Participant pursuant to Section 9 of the Plan.
1.25 "Stock
Option" means the right to purchase Common Stock at a stated price for a specified period of time. For purposes of the Plan,
a Stock Option may be either an incentive stock option within the meaning of Section 422(b) of the Code or a nonqualified stock
option.
1.26 "Subsidiary"
means any corporation or other entity of which 50% or more of the outstanding voting stock or voting ownership interest is directly
or indirectly owned or controlled by the Company or by one or more Subsidiaries of the Company. The term “Subsidiary” includes
present and future Subsidiaries of the Company.
1.27 "Termination"
or "Cessation" of employment or service shall be considered to occur on the date on which the Participant is no longer
obligated to perform services for the Company or any of its Subsidiaries and, in the case of an Employee, the Employee’s right to
re- employment is not guaranteed by statute, contract or written policy of the Company, regardless of whether the Participant continues
to receive compensation from the Company or any of its Subsidiaries after such date. “Cessation” of service as a Director
shall occur on the effective date of the removed or resignation of the Director from the Board. The following shall not be considered
such a termination or cessation: (i) a transfer of an employee among the Company and its Subsidiaries; (ii) a leave of absence,
duly authorized in writing by the Company or Subsidiary, for military service or for any other purpose approved by the Company or Subsidiary
if the period of such leave does not exceed 90 days; (iii) a leave of absence in excess of 90 days, duly authorized in writing by
the Company or Subsidiary, provided that the Employee’s right to re-employment is guaranteed by statute, contract or written policy
of the Company or Subsidiary; or (iv) a termination of employment as an officer with continued service as an Employee or director.
SECTION 2.
ADMINISTRATION
2.1 Authority
of Committee. The Plan shall be administered by the Committee. Subject to the terms of the Plan, the Committee's charter and applicable
laws, and in addition to other express powers and authorization conferred by the Plan, the Committee shall have the authority:
(a) to construe and interpret the Plan and apply its provisions;
(b) to
promulgate, amend, and rescind rules and regulations relating to the administration of the Plan;
(c) to
authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;
(d) to delegate its authority to one or more officers of the Company;
(e) to
determine when Incentive Awards are to be granted under the Plan and the applicable grant date;
(f) from
time to time to select, subject to the limitations set forth in this Plan, those Participants to whom Incentive Awards shall be granted;
(g) to
determine the number of shares of Common Stock to be made subject to each Incentive Award;
(h) to
determine whether each Option is to be an incentive Stock Option or a non-qualified Stock Option;
(i) to
prescribe the terms and conditions of each Incentive Award, including, without limitation, the exercise price and medium of payment and
vesting provisions, and to specify the provisions of the award agreement relating to such grant;
(j) to
amend any outstanding Incentive Awards, including for the purpose of modifying the time or manner of vesting, or the term of any outstanding
Incentive Award; provided, however, that if any such amendment impairs a Participant's rights or increases a Participant's obligations
under his or her Incentive Award or creates or increases a Participant's federal income tax liability with respect to an Incentive Award,
such amendment shall also be subject to the Participant's consent;
(k) to
determine the duration and purpose of leaves of absences which may be granted to a Participant without constituting termination of their
employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to Employees under the Company's
employment policies;
(l) to
make decisions with respect to outstanding Incentive Awards that may become necessary upon a Change in Control or an event that triggers
anti-dilution adjustments;
(m) to
interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any instrument
or agreement relating to, or Incentive Award granted under, the Plan; and
(n) to
exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the administration of
the Plan.
The Committee shall keep records
of action taken at its meetings. A majority of the Committee shall constitute a quorum at any meeting, and the acts of a majority of the
members present at any meeting at which a quorum is present, or acts approved in writing by all the members of the Committee, shall be
the acts of the Committee.
2.2 Indemnification.
In addition to such other rights of indemnification as they may have as members of the Board or the Committee, and to the extent allowed
by applicable laws, the Committee shall be indemnified by the Company against the reasonable expenses, including attorney's fees, actually
incurred in connection with any action, suit or proceeding or in connection with any appeal therein, to which the Committee may be party
by reason of any action taken or failure to act under or in connection with the Plan or any Incentive Award granted under the Plan, and
against all amounts paid by the Committee in settlement thereof (provided, however, that the settlement has been approved by the
Company, which approval shall not be unreasonably withheld) or paid by the Committee in satisfaction of a judgment in any such action,
suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such Committee
did not act in good faith and in a manner which such person reasonably believed to be in the best interests of the Company, or in the
case of a criminal proceeding, had no reason to believe that the conduct complained of was unlawful; provided, however, that within
60 days after institution of any such action, suit or proceeding, such Committee shall, in writing, offer the Company the opportunity
at its own expense to handle and defend such action, suit or proceeding.
SECTION 3.
ELIGIBILITY
Any full or part-time employee
of the Company or a Subsidiary, any member of the Board, and any consultant or advisor to the Company or a Subsidiary who, in each case,
is eligible to receive securities of the Company in a transaction qualifying for the exemption from registration under the Securities
Act provided by Rule 701 of the Securities and Exchange Commission shall be eligible for selection by the Committee to be granted
an Incentive Award under the Plan, provided, that only an employee of the Company or a Subsidiary shall be eligible for selection by the
Committee to be granted an incentive Stock Option under the Plan.
SECTION 4.
SHARES AVAILABLE UNDER THE PLAN
4.1 Number
of Shares. The aggregate number of shares of Common Stock which may be issued or delivered and as to which Incentive Awards may
be granted under the Plan is 1,128,037 shares, subject to adjustment and substitution as set forth in Section 4.2, all of which may
be issued in respect of incentive Stock Options. If any Incentive Award is cancelled by mutual consent or terminates or expires for any
reason without having been exercised in full, the shares of Common Stock subject thereto shall again be available for the grant of Awards
under the Plan. The shares that may be issued under the Plan may be either authorized but unissued shares or shares previously issued
and thereafter acquired by the Company, or partly each, as shall be determined from time to time by the Board.
4.2 Adjustment.
In the event of any recapitalization, reorganization, merger, stock split or combination, stock dividend or other similar event or
transaction (including, without limitation, any "corporate transaction," within the meaning of Treasury Regulation § 1.424-
1(a)(3)), substitutions or adjustments will be made by the Committee: (i) to the aggregate number, class and/or issuer of the securities
reserved for issuance under the Plan; (ii) to the number, class and/or issuer of securities subject to outstanding Incentive Awards;
and (iii) to the exercise price of outstanding Incentive Awards, in each case in a manner that reflects equitably the effects of
such event or transaction and as shall generally reflect the proportionate percentage change in the number of shares outstanding and the
share price to the extent necessary to preserve the economic intent of such Incentive Award. For avoidance of doubt, a substitution or
adjustment that reflects equitably the effects of a given event or transaction will include (but will not be limited to) any substitution
or adjustment consistent with the requirements of Treasury Regulation §1.424-1(a) or any successor provision.
SECTION 5.
GRANT OF INCENTIVE AWARDS
Subject to the provisions
of the Plan, the Committee shall have full and final authority, in its discretion, (1) to determine the eligibility of any individual
to be granted an Incentive Award under the Plan, (2) to select from among the eligible individuals the persons who are to be granted
Incentive Awards and (3) to determine the number of shares of Common Stock to be subject to any Incentive Award granted to any eligible
person selected by the Committee and, subject to the provisions of the Plan, the other terms and conditions of the Incentive Award.
SECTION 6.
STOCK OPTIONS
| 6.1 | Grant of Stock Options. The Committee shall have authority, in its discretion, |
(a) to grant "incentive Stock
Options" pursuant to Section 422 of the Code, (b) to grant "nonqualified Stock Options" (i.e., Stock
Options that do not qualify under Section 422 or 423 of the Code) or (c) to grant both types of options, provided,
however, that (i) an incentive Stock Option may only be granted to a Participant who is an Employee and (ii) to the extent
that the aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect to which incentive Stock Options
are exercisable for the first time by any Participant during any calendar year (under all plans of the Company and its Affiliates)
exceeds $100,000, the Stock Options or portions thereof that exceed such limit shall be treated as non-qualified Stock Options. For
purposes of applying the foregoing limitation, incentive Stock Options will be taken into account in the order granted. If the date
on which one or more incentive Stock Options could first be exercised would be accelerated pursuant to any provision of the Plan or
any Stock Option Agreement, and the acceleration of such exercise date would result in a violation of the restriction set forth in
the preceding sentence, then, notwithstanding any such provision, but subject to the provisions of the next succeeding sentence, the
exercise dates of such incentive Stock Options shall be accelerated only to the date or dates, if any, that do not result in a
violation of such restriction and, in such event, the exercise dates of the incentive Stock Options with the lowest option prices
shall be accelerated to the earliest such dates. The Committee may, in its discretion, authorize the acceleration of the exercise
date of one or more incentive Stock Options even if such acceleration would violate the $100,000 restriction set forth in the first
sentence of this paragraph and even if such incentive Stock Options are thereby converted in whole or in part to nonqualified Stock
Options.
6.2 Terms
and Conditions of Stock Options. Stock Options granted under the Plan shall be subject to the following terms and conditions:
(a) Option
Price. The purchase price at which each Stock Option may be exercised (the "option price") shall be such price
as the Committee, in its discretion, shall determine. The option price of each Stock Option shall not be less than 100% of the Fair Market
Value per share of the Common Stock covered by the option on the date of grant, except that in the case of an incentive Stock Option granted
to an employee who, immediately prior to such grant, owns stock possessing more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company (a "Ten Percent Employee"), the option price shall not be less than 110% of such
Fair Market Value on the date of grant. For purposes of this Section 6.2(a), the stock attribution rules of Treas. Reg. Section 1.424-1(d) apply.
(b) Exercisability
and Expiration. A Stock Option shall become exercisable and shall expire at such time or times and/or upon the occurrence of such
event or events as may be determined by the Committee at the time of grant of the Stock Option. No Stock Option shall be exercisable after
the expiration of ten years (five years in the case of an incentive Stock Option granted to a Ten Percent Employee) from the date of grant.
A Stock Option to the extent exercisable may be exercised in whole or in part.
(c) Manner
of Exercise. Subject to the exercisability and termination provisions set forth herein and in the applicable Stock Option Agreement,
Stock Options may be exercised at any time and from time to time during the term of the Stock Option, by the delivery of written notice
of exercise by the Participant to the Committee specifying the number of shares of Common Stock to be purchased. Such notice will be accompanied
by payment in full of the purchase price, either by (i) cash or certified or bank check, or (ii) in the discretion of the Committee,
upon such terms as the Committee shall approve: (A) by delivery to the Company of other shares of Common Stock, duly endorsed for
transfer to the Company, with a Fair Market Value on the date of delivery equal to the option price (or portion thereof) due for the number
of shares being acquired; (B) by a "net exercise" procedure effected by withholding the minimum number of shares of Common
Stock otherwise issuable in respect of a Stock Option that are needed to pay the option price; (C) by any combination of the foregoing
methods; or (D) in any other form of legal consideration that may be acceptable to the Committee. No shares of Common Stock will
be issued upon exercise of a Stock Option until full payment therefor has been made. A Participant will not have the right to distributions
or dividends or any other rights of a stockholder with respect to shares of Common Stock subject to the Stock Option until the Participant
has given written notice of exercise, has paid in full for such shares, has given all representations required and described herein and
fulfills such other conditions as may be set forth in the applicable Stock Option Agreement.
(d) Nontransferability
of Options. Except to the extent otherwise determined by the Committee and reflected in the Stock Option Agreement or an
amendment thereto, no Stock Option shall be transferable by the Participant, including by reason of the death of the Participant.
Except to the extent otherwise determined by the Committee and reflected in the Stock Option Agreement or an amendment thereto, all
Stock Options shall be exercisable only by the Participant, or, in the event of his Disability, by his personal
representative.
(e) Termination
of Service. Subject to the provisions of Section 6.1 in the case of incentive Stock Options, unless the Committee, in its
discretion, shall otherwise determine and the Stock Option Agreement shall so provide, the exercisability of any option granted under
the Plan shall be subject to a requirement that the Participant shall have remained continuously in the service of the Company or Subsidiary
as an employee, director, consultant, advisor and/or in such other capacity or capacities as the Committee may specify (hereinafter referred
to as the Participant's "Service") from the date of grant of the option through the date of exercise, except as follows:
(i) If
the Service of a Participant who is not Disabled terminates, any then outstanding Stock Option of such Participant shall be exercisable
(but only to the extent exercisable immediately prior to the Termination of Service) at any time prior to the expiration date of the Stock
Option or within three months after the date of Termination of Service, whichever is the shorter period;
(ii) If
the Service of a Participant who is Disabled terminates, any then outstanding Stock Option of such Participant shall be 100% vested and
shall be exercisable at any time prior to the expiration date of such Stock Option or within one year after the date of Termination of
Service, whichever is the shorter period;
(iii) Following
the death of a Participant during Service to the Company or Subsidiary, any Stock Option of the Participant outstanding at the time of
death shall be 100% vested and shall be exercisable by the person entitled to do so under the will of the Participant, or, if the Participant
shall fail to make testamentary disposition of the Stock Option or shall die intestate, by the legal representative of the Participant
at any time prior to the expiration date of such Stock Option or within one year after the date of death, whichever is the shorter period;
(iv) If
a Participant's Service is terminated for Cause: (A) any Stock Option held by the Participant will immediately and automatically
expire as of the date of such termination, and (B) any shares of Common Stock for which the Company has not yet delivered share certificates
will be immediately and automatically forfeited and the Company will refund to the Participant the Stock Option exercise price paid for
such shares, if any.
(f) Non-Competition.
If a Participant engages in the operation or management of a business (whether as owner, partner, officer, director, employee
or otherwise and whether during or after Termination of Service) that is in competition with the Company, or violates a separate non-compete
agreement with the Company or any Affiliate, the Committee may immediately terminate all outstanding Stock Options held by the Participant.
Whether a Participant has engaged in the operation or management of a business that is in competition with the Company or has violated
a non-compete agreement shall be determined, in its discretion, by the Committee, and any such determination by the Committee shall be
final and binding.
(g) Stock
Option Agreements. All Stock Options shall be confirmed by an agreement (a "Stock Option Agreement"), or an amendment
thereto, executed by the Company and the Participant.
(h) Conditions
to Exercise. Subject to the foregoing provisions of this Section 6.2, Section 12 and the other provisions of the Plan,
any Stock Option granted under the Plan may be exercised at such times and in such amounts and be subject to such other restrictions and
such other terms and conditions, if any, as shall be determined, in its discretion, by the Committee and set forth in the Stock Option
Agreement or an amendment thereto.
SECTION 7.
STOCK APPRECIATION RIGHTS
7.1 Grant.
A Participant may be granted one or more Stock Appreciation Rights under the Plan and such SARs shall be subject to such terms and
conditions, consistent with the other provisions of the Plan, as shall be determined by the Committee in its sole discretion. A SAR may
relate to a particular Stock Option and may be granted simultaneously with or subsequent to the Stock Option to which it relates. Except
to the extent otherwise modified in the grant, (i) SARs not related to a Stock Option shall be granted subject to the same terms
and conditions applicable to Stock Options as set forth in Section 6, and (ii) all SARs related to Stock Options granted under
the Plan shall be granted subject to the same restrictions and conditions and shall have the same vesting, exercisability, forfeiture
and termination provisions as the Stock Options to which they relate. SARs may be subject to additional restrictions and conditions. The
per-share base price for exercise or settlement of SARs shall be determined by the Committee, but shall be a price that is equal to or
greater than the Fair Market Value of such shares. Other than as adjusted pursuant to Section 4.2, the base price of SARs may not
be reduced without shareholder approval (including canceling previously awarded SARs and regranting them with a lower base price).
7.2 Exercise;
Payment. To the extent a SAR relates to a Stock Option, the SAR may be exercised only when the related Stock Option could be exercised
and only when the Fair Market Value of the shares subject to the Stock Option exceed the exercise price of the Stock Option. When a Participant
exercises such SARs, the Stock Options related to such SARs shall automatically be cancelled with respect to an equal number of underlying
shares. Unless the Committee decides otherwise (in its sole discretion), SARs shall only be paid in cash or in shares of Common Stock.
For purposes of determining the number of shares available under the Plan, each Stock Appreciation Right shall count as one share of Common
Stock, without regard to the number of shares, if any, that are issued upon the exercise of the Stock Appreciation Right and upon such
payment. Shares issuable in connection with a SAR are subject to the transfer restrictions in Section 10.
SECTION 8.
RESTRICTED STOCK AND RESTRICTED STOCK UNITS
8.1 Grant. Restricted
Stock and Restricted Stock Units may be granted to Participants under the Plan. Shares of Restricted Stock are shares of Common
Stock the retention, vesting, divestment and/or transferability of which is subject, during specified periods of time, to such
conditions (including continued employment and/or achievement of one or more performance goals established by the Committee) and
terms as the Committee deems appropriate, but in no case shall the Committee provide for any deferral of compensation after such
conditions and terms are satisfied. Restricted Stock Units are Incentive Awards denominated in units of Common Stock under which the
issuance of shares of Common Stock is subject to such conditions (including continued employment and/or achievement of one or more
performance goals established by the Committee) and terms as the Committee deems appropriate. For purposes of determining the number
of shares available under the Plan, each Restricted Stock Unit shall count as the number of shares of Common Stock subject to the
Restricted Stock Unit. Unless determined otherwise by the Committee, each Restricted Stock Unit shall be equal to one share of
Common Stock and shall entitle a Participant to either shares of Common Stock or an amount of cash determined with reference to the
value of shares of Common Stock. To the extent determined by the Committee, Restricted Stock and Restricted Stock Units may be
satisfied or settled in cash, in shares of Common Stock or in a combination thereof. Restricted Stock Units shall be settled no
later than the 15th day of the third month after the Restricted Stock Units vest. Restricted Stock and Restricted Stock Units
granted pursuant to the Plan need not be identical but shall be consistent with the terms of the Plan. Subject to the requirements
of applicable law, the Committee shall determine the price, if any, at which awards of Restricted Stock or Restricted Stock Units,
or shares of Common Stock issuable pursuant to Restricted Stock Unit awards, shall be sold or awarded to a Participant, which may
vary from time to time and among Participants.
8.2 Restricted
Stock Agreements. Awards of Restricted Stock and Restricted Stock Units shall be evidenced by restricted stock or restricted stock
unit agreements or certificates of award containing such terms and conditions, consistent with the provisions of the Plan, as the Committee
shall from time to time determine. Shares of Restricted Stock not evidenced by a certificate shall be recorded in “book entry”
form in the Company’s stock records. Unless the restricted stock or restricted stock unit agreement or certificate of award provides
otherwise, awards of Restricted Stock and Restricted Stock Units shall be subject to the terms and conditions set forth in this Section 8.
8.3 Vesting.
The grant, issuance, retention and vesting of shares of Restricted Stock and Restricted Stock Units and the settlement of Restricted
Stock Units shall occur at such time and in such installments as determined by the Committee or under criteria established by the Committee.
The Committee shall have the right to make the timing of the grant and/or issuance of, the ability to retain and the vesting and/or the
settlement of Restricted Stock Units and shares of Restricted Stock subject to continued employment, passage of time and/or performance
goals as deemed appropriate by the Committee. No condition that is based upon continued employment or the passage of time shall provide
for vesting or settlement in full of Restricted Stock or Restricted Stock Units over a period of less than one year from the date the
Award is made, other than as a result of or upon the death or Disability of the Participant or a Change in Control.
8.4 Termination
of Employment or Directorship Status. Unless the Committee otherwise consents or permits (before or after the grant of Restricted
Stock or Restricted Stock Units) or unless the restricted stock or restricted stock unit agreement or grant provides otherwise:
(a) General.
Except as set forth in Section 8.4(b) or 8.4(c) below, if a Participant ceases to be an Employee, director or other
service provider during the Restricted Period, the Participant shall have no further right to retain or receive any Restricted Stock or
Restricted Stock Units and all Restricted Stock and Restricted Stock Units still subject to restrictions at the date of such termination
shall automatically be forfeited and returned to the Company.
(b) Death
or Disability. If a Participant’s service with the Company or Subsidiary is terminated because of death or Disability during
the Restricted Period, then all restrictions remaining on any or all shares of Restricted Stock and Restricted Stock Units shall terminate
automatically as to all of the respective number of such shares or Restricted Stock Units granted to such Participant and those shares
or Restricted Stock Units shall become immediately fully vested and nonforfeitable.
(c) Termination
not for Cause. If the Company or Subsidiary terminates a Participant’s service other than for Cause, then all restrictions
remaining on any or all shares of Restricted Stock and Restricted Stock Units shall terminate automatically with respect to that respective
number of such shares or Restricted Stock Units (rounded to the nearest whole number) equal to the respective total number of such shares
or Restricted Stock Units granted to such Participant multiplied by the number of full months that have elapsed since the date of grant
divided by the total number of full months in the respective Restricted Period. All remaining shares of Restricted Stock and Restricted
Stock Units shall be forfeited and returned to the Company. The Committee may, in its sole discretion, waive the restrictions remaining
on and forfeiture of any or all such remaining shares of Restricted Stock and Restricted Stock Units either before or after any termination
of service.
| 8.5 | Restrictions on Transferability. |
(a) General.
Unless the Committee otherwise consents or permits or unless the terms of the restricted stock or restricted stock unit agreement
or grant provide otherwise: (i) neither shares of Restricted Stock nor Restricted Stock Units may be sold, exchanged, transferred,
pledged, assigned or otherwise alienated or hypothecated during the Restricted Period; and (ii) all rights with respect to Restricted
Stock and Restricted Stock Units granted to a Participant under the Plan shall be exercisable during the Participant’s lifetime
only by such Participant or his or her guardian or legal representative.
(b) Other
Restrictions. Common Stock acquired pursuant to an award of Restricted Stock or issuable pursuant to Restricted Stock Units shall
be subject to the transfer restrictions set forth in Section 10. In addition, the Committee may impose other restrictions on any
shares of Common Stock acquired pursuant to an award of Restricted Stock or issuable pursuant to Restricted Stock Unit awards under the
Plan as the Committee considers advisable, including, without limitation, holding periods or further transfer restrictions, forfeiture
or “claw- back” provisions, and restrictions under applicable federal or state securities laws.
8.6 Legending
of Restricted Stock. In addition to any other legend that may be set forth on a Participant’s share certificate, any certificates
evidencing shares of Restricted Stock awarded pursuant to the Plan shall bear the following legend:
The shares represented by this certificate
were issued subject to certain restrictions under the Infrared Cameras Holdings, Inc. Equity Incentive Plan of 2020 (the “Plan”).
This certificate is held subject to the terms and conditions contained in a restricted stock agreement that includes a prohibition against
the sale or transfer of the stock represented by this certificate except in compliance with that agreement and that provides for forfeiture
upon certain events. Copies of the Plan and the restricted stock agreement are on file in the office of the Secretary of the Company.
The Committee may require that certificates representing
shares of Restricted Stock be retained and held in escrow by a designated employee or agent of the Company or any Subsidiary until any
restrictions applicable to shares of Restricted Stock so retained have been satisfied or lapsed.
8.7 Rights
as a Shareholder. A Participant shall have all dividend, liquidation and other rights with respect to Restricted Stock held of
record by such Participant as if the Participant held unrestricted Common Stock; provided, that the unvested portion of any award
of Restricted Stock shall be subject to any restrictions on transferability or risks of forfeiture imposed pursuant to this Section 8
and the terms and conditions set forth in the Participant’s restricted stock agreement. Unless the Committee otherwise determines
or unless the terms of the applicable restricted stock unit agreement or grant provide otherwise, a Participant shall have all dividend
and liquidation rights with respect to shares of Common Stock subject to awards of Restricted Stock Units held by such Participant as
if the Participant held unrestricted Common Stock. Unless the Committee determines otherwise or unless the terms of the applicable restricted
stock or restricted stock unit agreement or grant provide otherwise, any noncash dividends or distributions paid with respect to shares
of unvested Restricted Stock and shares of Common Stock subject to unvested Restricted Stock Units shall be subject to the same restrictions
and vesting schedule as the shares to which such dividends or distributions relate. Any dividend payment with respect to Restricted Stock
or Common Stock subject to awards of Restricted Stock Units shall be made no later than the end of the calendar year in which the dividends
are paid to shareholders, or, if later, the 15th day of the third month following the date the dividends are paid to shareholders.
8.8 Voting
Rights. Unless otherwise determined by the Committee, Participants holding shares of Restricted Stock granted hereunder may exercise
full voting rights with respect to those shares during the Restricted Period. Participants shall have no voting rights with respect to
shares of Common Stock underlying Restricted Stock Units unless and until such shares are issued and outstanding shares on the Company’s
stock ledger.
SECTION 9.
STOCK-BASED AWARDS; DIVIDEND EQUIVALENTS
9.1 Grant. In
addition to any Stock Options, Stock Appreciation Rights, Restricted Stock, or Restricted Stock Units that a Participant may be
granted under the Plan, a Participant may be granted one or more other types of awards based on or related to shares of Common Stock
(including the grant of Stock Awards). Such awards shall be subject to such terms and conditions, consistent with the other
provisions of the Plan, as may be determined by the Committee in its sole discretion, but in no case shall the Committee provide for
any deferral of compensation after such conditions and terms are satisfied. Notwithstanding the previous sentence, Stock Awards
shall be settled no later than the 15th day of the third month after the awards vest. Such awards shall be expressed in terms of
shares of Common Stock or denominated in units of Common Stock. For purposes of determining the number of shares available under the
Plan, each such unit shall count as the number of shares of Common Stock to which it relates.
| 9.2 | Rights as a Shareholder. |
(a) Stock
Awards. A Participant shall have all voting, dividend, liquidation and other rights with respect to shares of Common Stock issued
to the Participant as a Stock Award under this Section 9 upon the Participant becoming the holder of record of the Common Stock granted
pursuant to such Stock Award; provided, that such Common Stock shall be subject to the transfer restrictions set forth in Section 10
and the Committee may impose such other restrictions on the assignment or transfer of Common Stock awarded pursuant to a Stock Award as
it considers appropriate. Any dividend payment with respect to a Stock Award shall be made no later than the end of the calendar year
in which the dividends are paid to shareholders, or, if later, the 15th day of the third month following the date the dividends are paid
to shareholders.
(b) General.
With respect to shares of Common Stock subject to awards granted under the Plan other than Stock Options, Stock Appreciation Rights,
Restricted Stock, Restricted Stock Units and Stock Awards, a Participant shall have such rights as determined by the Committee and set
forth in the respective award agreements; and the Committee may impose such restrictions on the assignment or transfer of Common Stock
awarded pursuant to such awards as it considers appropriate.
9.3 Dividend
Equivalents. The Committee is authorized to grant Dividend Equivalents to Participants, which may be awarded on a free-standing
basis or in connection with another Incentive Award. The Committee may provide, at the date of grant or thereafter, that Dividend Equivalents
shall be paid or distributed when accrued or shall be deemed to have been reinvested in additional shares of Common Stock, or other investment
vehicles as the Committee may specify; provided, however, that Dividend Equivalents (other than freestanding Dividend Equivalents) shall
be subject to all conditions and restrictions of the underlying Incentive Awards to which they relate unless otherwise provided by the
Committee. Any grant of Dividend Equivalents made to a Participant hereunder shall be permitted only to the extent that such grant would
satisfy the requirements of Section 409A of the Code. To the extent that a grant of Dividend Equivalents would be deemed, under Section 409A
of the Code, to reduce the exercise price of an Option or SAR below the Fair Market Value (determined as of the date of grant) of the
share of Common Stock underlying such Award, no grant of Dividend Equivalents shall be allowed with respect to such Option or SAR. No
Dividend Equivalents shall be transferable by the holder other than by will or by the laws of descent and distribution. Unless otherwise
provided by the Committee in an award agreement, a Participant's rights in all Dividend Equivalents shall automatically terminate upon
the Participant's termination of employment (or cessation of service) with the Company and its Subsidiaries for any reason.
SECTION 10.
CONTINUING TRANSFER RESTRICTIONS
10.1 Transfer
Restrictions. All Shares acquired upon exercise or vesting of an Incentive Award granted under the Plan shall be subject to the
following continuing restrictions on transfer:
(a) No
Participant shall sell, exchange, assign, alienate, pledge, hypothecate, encumber, charge, give, devise, or otherwise dispose of, either
voluntarily or by operation of law (hereinafter referred to as "transfer"), any Shares acquired pursuant to the Plan
or any rights or interests appertaining thereto, except as permitted by the Plan or in a Permitted Transfer. A "Permitted Transfer"
means the transfer by a holder of Shares acquired under this Plan to himself or herself as sole trustee under a trust agreement for his
or her benefit, or for the benefit of his or her spouse or children, under which trust agreement he or she retains the exclusive right
and power, during his or her lifetime, to revoke the trust and to vote and otherwise control the sale or disposition of such Shares, provided,
that the proposed transferee shall execute an undertaking to be bound by the transfer restrictions set forth in this Plan.
(b) A
Participant shall not transfer any Shares acquired pursuant to the Plan (except in a Permitted Transfer) without first offering to sell
such shares to the Company at a price equal to the lesser of a bona fide third party offer price, or the Fair Market Value of the shares
as of the date of the offer under the following procedure (and, in the case of a proposed transfer upon the death of the Participant,
the procedure specified in Section 10.1(c)):
(i) Each
Participant who desires to transfer any Shares acquired pursuant to the Plan shall make the offer required by this Section 10.1(b) by
giving written notice by certified mail to the Company to the attention of its President at its principal executive offices. Such written
notice shall specify the number of Shares offered, the person or persons to whom the Participant will transfer the Shares offered if the
Company does not accept the Participant's offer and the price and form of consideration for which such shares will be transferred. For
purposes of this Section 10.1(b) the date of an offer shall be the date on which the written notice pursuant to this paragraph
(i) is postmarked;
(ii) The
offer of a Participant pursuant to paragraph (i) may be accepted by the Company as to all or any portion of the shares offered by
written notice of acceptance given to the Participant by certified mail within 30 days after the date of the offer. The date such notice
is postmarked shall be deemed the date of acceptance. All purchases of Shares pursuant to this Section 10.1(b) shall be consummated,
and payment in full for the shares purchased shall be made, at the principal executive offices of the Company on such date and at such
time as may be reasonably designated by the Company in the written notice delivered to the Participant, but not later than 30 days following
the date of such written notice. At such date, time and place, and upon receipt of the purchase price, the Participant shall assign, transfer
and deliver the certificates for the purchased Shares to the Company, duly endorsed, with all necessary stock transfer tax stamps duly
affixed, together with any and all documents required to effectively transfer the Shares to the Company; and
(iii) If
the Company does not accept the Participant's offer as to any shares within the required period or if the Company accepts the offer and,
through the fault of the Company alone, the Company fails to consummate the purchase of any shares as required by paragraph (ii), the
Participant may thereafter transfer the shares not accepted or purchased by the Company to the person or persons specified in the written
notice given to the Company pursuant to paragraph (i) at the price and on the terms specified in such notice, but only to such persons
and only at such price and on such terms and only if the Participant transfers such shares within 90 days after (a) the expiration
of the 30 day period during which the Company may accept the Participant's offer or (b) the expiration of the 30-day period during
which the Company may consummate the purchase of the shares, as the case may be. The Participant may not thereafter transfer any Shares
acquired under the Plan without again complying with the provisions of this Section 10. The Participant may not transfer any the
Shares to any person or persons pursuant to this paragraph (iii) unless the Participant delivers to the Company a legal opinion in
form and substance reasonably satisfactory to the Company that such transfer will not constitute a violation of any applicable Federal
or state securities laws. The restrictions of this Section 10 and, if applicable, the provisions of the Participant's Joinder Agreement
also shall apply to any transferee of the Participant who acquires Shares pursuant to this Section 10.1(b), and the transferee shall
execute a written agreement with the Company agreeing to such restrictions and provisions.
(c) If
the Service of a Participant with the Company terminates for any reason, or if a Participant dies subsequent to any such Termination of
Service, all Shares held by the Participant that were acquired pursuant to the Plan shall be deemed to have been offered for sale to the
Company at a price equal to the Fair Market Value of the shares at the time the right described in this Section 10.1(c) is exercised.
If the Company elects to purchase any or all of the Shares deemed offered, the Company shall notify the Participant (or his or her personal
representative) by certified mail within 30 days of the later of (i) the date the Participant's Service ceases (or the date the chief
executive officer of the Company learns of the Participant's death, as the case may be), or (ii) the date six months following the
date the Incentive Award became vested with respect to such Shares. If the Company accepts the deemed offer in whole or in part, the purchase
of the Shares pursuant to this Section 10.1(c) shall be consummated, and payment in full for the shares purchased shall be made,
at the principal executive offices of the Company on such date and at such time as may be reasonably designated by the Company in such
written notice delivered to the Participant (or his or her personal representative), but not later than 30 days following the date of
such written notice. Upon receipt of the purchase price of the Shares, the Participant (or his or her personal representative) shall assign,
transfer and deliver to the Company the certificates for the shares purchased, duly endorsed, with all necessary stock transfer tax stamps
duly affixed, together with any and all documents required to effectively transfer the shares to the Company. If the Company decides not
to accept the deemed offer in whole or in part, the Company shall so notify the Participant (or the personal representative of the Participant).
Section 10.1(a), 10.1(b), 10.1(c) and 10.1(e) shall continue to apply to the Participant (or the Participant's personal
representative, subject to Section 10.1(d)).
(d) In
the event of (1) the death of any Participant and the non-exercise by the Company of the purchase rights granted in
Section 10.1(c) or (2) the Company's failure following exercise of such purchase rights, through the fault of the
Company alone, to consummate the purchase of its Shares, any devisee, legatee or heir of such Participant including any
trustee) shall be entitled to receive the Shares of the Participant subject to the Plan, but any such recipient shall be subject to
the transfer restrictions of Sections 10.1(a) and 10.1(b) and, in the event of such recipient's death,
Section 10.1(c) and this Section 10.1(d), as if such recipient were the "Participant" (with any reference
to Service of the Participant meaning Service of the original Participant under this Plan). The devisee, legatee or heir of such
Participant (including any trustee) who receives the Shares shall execute a written agreement with the Company agreeing to such
restrictions and provisions.
(e) If
a Participant engages in the operation or management of a business (whether as owner, partner, officer, director, employee or otherwise
and whether during or after Termination of Service) that is in competition with the Company, the Company may at any time thereafter elect
by written notice by certified mail to the Participant (or his or her personal representative) to purchase any or all Shares held by the
Participant (or his estate) that were acquired pursuant to the Plan at a price equal to the lesser of (1) the option price paid for
such shares with respect to shares acquired through the exercise of a Stock Option or the amount paid, if any, for shares acquired under
any other Incentive Award, or (2) the Fair Market Value of the shares as of the date such notice is given by the Company. If such
notice is given by the Company, the purchase of Shares pursuant to this Section 10.1(e) shall be consummated, and payment in
full for the shares which the Company elects to purchase shall be made, at the principal executive offices of the Company on such date
and at such time as may be reasonably designated by the Company in such written notice delivered to the Participant (or his or her personal
representative), but not later than 30 days following the date of such written notice. Upon tender of the purchase price of the Shares,
the Participant (or his or her personal representative) shall assign, transfer and deliver to the Company the certificates for the shares
purchased, duly endorsed, with all necessary stock transfer tax stamps duly affixed, together with any and all documents required to effectively
transfer the shares to the Company.
(f) Each
certificate representing Shares issued pursuant to the Plan shall have noted on the face of such certificate legends in substantially
the following forms and such other legends as the Company may deem necessary or appropriate to assure compliance with the requirements
of applicable federal or state securities laws:
Notice is
hereby given that the Shares represented by this certificate are held subject to, and may not be sold, transferred, assigned,
pledged, gifted or otherwise disposed of except in accordance with, the terms, conditions and restrictions set forth in the 2020
Equity Incentive Plan of Infrared Cameras Holdings, Inc. (the "Plan"), a copy of which is on file at the office of
Infrared Cameras Holdings, Inc. No such transaction shall be recognized as valid or effective unless there shall have been
compliance with the terms and conditions of the Plan. By acceptance of this certificate, the holder (i) represents and warrants
that the Shares represented hereby are being acquired for investment for the account of the holder and not with a view to the resale
or other distribution thereof and (ii) acknowledges that violation of the provisions of the Plan is not adequately compensable
by monetary damages and that, in addition to other relief, the terms thereof may be specifically enforced in an action for
injunctive relief.
In addition, the
Shares represented by this certificate have not been registered under the Securities Act of 1933 or any state or foreign securities law
(the "Acts") and may not be transferred by the holder except (1) pursuant to a Registration Statement or other appropriate
registration effective under the Acts, or (2) pursuant to an exemption from the registration requirements of the Acts and the delivery
of a legal opinion satisfactory to counsel for Infrared Cameras Holdings, Inc. that registration is not required.
10.2 Expiration
of Transfer Restrictions. The restrictions on transfer contained in this Section 10, and the rights and obligations of the
Company to purchase Shares under this Section 10 (other than the purchase rights of the Company under Section 10.1(e)), shall
expire on such date, if any, as the Company shall become subject to the reporting requirements of Section 13 or 15(d) of the
Exchange Act; provided, however, that such expiration shall not affect the rights or obligations of the Company with respect to any offer
to purchase accepted by the Company prior to such date. The expiration of the restrictions contained in this Section 10 shall not
affect the restrictions to which a holder of Shares acquired under the Plan may be subject under the Securities Act, any state or foreign
securities law or other applicable law or the right of the Company to require, as a condition to any transfer of its Shares, an opinion
of legal counsel satisfactory to the Company as to whether any proposed transfer is in compliance with the registration or other requirements
of such laws.
SECTION 11.
CHANGE OF CONTROL
11.1 Acceleration
of Vesting. If a Change in Control of the Company occurs, then, unless the Committee or the Board otherwise determines and expressly
states in the agreements governing one or more Incentive Awards, without action by the Committee or the Board: (a) all outstanding
Stock Options shall become vested and exercisable in full immediately prior to the effective time of a Change in Control and shall remain
exercisable during the remaining terms thereof, regardless of whether the Participants to whom such Stock Options have been granted remain
in the employ or service of the Company or any Subsidiary; and (b) all other outstanding Incentive Awards shall become immediately
fully vested and exercisable and nonforfeitable.
11.2 Cash
Payment for Stock Options. If a Change in Control of the Company occurs, then the Committee, in its sole discretion and
without the consent of any Participant affected thereby, may determine that some or all Participants holding outstanding Stock
Options shall receive, with respect to and in lieu of some or all of the shares of Common Stock subject to such Stock Options, as of
the effective date of any such Change in Control of the Company, cash in an amount equal to the price per share actually paid in
connection with any Change in Control of the Company, over the exercise price per share of such Stock Options. Upon a
Participant’s receipt of such amount with respect to some or all of his or her Stock Options, the respective Stock Options
shall be cancelled and may no longer be exercised by such Participant.
SECTION 12.
SECURITIES LAW RESTRICTIONS
No shares of Common Stock
shall be issued upon the exercise or vesting of an Incentive Award under the Plan, and no certificates for such shares shall be delivered
to any Participant, unless the Company shall be satisfied (and if requested by the Company, unless it has received an opinion of counsel
selected by the Company to such effect) that the issuance or delivery of the shares will not cause the Company to violate the Securities
Act, any applicable state or foreign securities law or any applicable rules or regulations under the Securities Act or under any
such state or foreign securities law. The Company is under no obligation to register any shares of Common Stock issuable under the Plan,
or take any other action, under the Securities Act or under any state or foreign securities law in connection with the offer or sale of
such shares under the Plan or to prepare any disclosure document for distribution to Participants under the Securities Act or any state
or foreign securities law in connection with such offer or sale. As a condition precedent to the issuance or delivery of shares acquired
pursuant to an Incentive Award, the person acquiring the shares may be required to represent, warrant and agree (i) that the shares
are being acquired for the account of such person for investment and not with a view to the resale or other distribution thereof and (ii) that
such person will not, directly or indirectly, transfer, sell, assign, pledge, hypothecate or otherwise dispose of any such shares unless
the transfer, sale, assignment, pledge, hypothecation or other disposition of the shares is pursuant to effective registrations under
the Securities Act and any applicable state or foreign securities laws or pursuant to appropriate exemptions from any such registrations.
The certificate or certificates representing the shares to be issued or delivered upon exercise or vesting of an Incentive Award may bear
a legend to this effect and other legends required by any applicable securities laws, and if the Company should at some time engage the
services of a stock transfer agent, appropriate stop-transfer instructions may be issued to the stock transfer agent with respect to such
shares. In addition, also as a condition precedent to the issuance or delivery of shares upon the exercise or vesting of an Incentive
Award, the person acquiring the shares may be required to make certain other representations and warranties and to provide certain other
information to enable counsel for the Company to render an opinion under the first sentence of this Section 12.1.
SECTION 13.
WITHHOLDING TAXES
No later than the date as
of which an amount first becomes includible in the gross income of the Participant for federal income tax purposes with respect to any
Incentive Award under the Plan, the Participant will pay to the Company, or make arrangements satisfactory to the Committee regarding
the payment of, taxes of any kind required by law to be withheld with respect to such amount. The obligations of the Company under the
Plan will be conditioned on such payment or arrangements and the Company will have the right to deduct any such taxes from any payment
of any kind otherwise due to the Participant. Unless otherwise determined by the Committee, the minimum required withholding obligation
with respect to an Incentive Award may be settled in shares of Common Stock, including the shares that are subject to that award.
SECTION 14.
EFFECT OF THE PLAN ON THE RIGHTS OF PARTICIPANTS
AND THE COMPANY
Neither the adoption of the
Plan nor any action of the Board or the Committee pursuant to the Plan shall be deemed to give any individual any right to be granted
an Incentive Award under the Plan. Nothing in the Plan, in any Incentive Award granted under the Plan or in any agreement providing for
any of the foregoing shall confer upon any Participant any right to continue in the Service of the Company or interfere in any way with
the rights of the Company to terminate the Service of any Participant at any time.
SECTION 15.
ARBITRATION
In the event any dispute shall
arise between the Company and a Participant with respect to any of the terms and conditions of the Plan or any grant agreement, then such
dispute shall be submitted and finally settled by arbitration in Texas under the rules of the American Arbitration Association. The
award rendered by the arbitrator shall be final and binding upon the Company, the Participant and all persons claiming through either
or them, and judgment on the award may be entered by either party in any court that would ordinarily have jurisdiction over the parties
or the subject matter of the controversy or claim. Each party shall pay its own expenses incident to such arbitration, including attorneys'
fees. By the grant and acceptance of any Incentive Award, the Company and the Participant shall be deemed to have agreed, on behalf of
themselves and their successors and assigns, not to institute any litigation or proceedings against each other in connection with the
Plan or any grant agreement hereunder except as provided in this Section 15.
SECTION 16.
AMENDMENT AND TERMINATION
The right to amend the Plan
at any time and from time to time and the right to terminate the Plan are hereby specifically reserved to the Board; provided always that
no termination of the Plan shall terminate any outstanding Incentive Award granted under the Plan. No amendment or termination of the
Plan shall, without the written consent of the holder of an Incentive Award previously granted under the Plan, adversely affect the rights
of such holder with respect thereto. Notwithstanding the foregoing or anything in the Plan to the contrary, the Board may, without the
approval of the stockholders of the Company, reduce the exercise price per share of outstanding Options or Stock Appreciation Rights or
cancel outstanding Options or Stock Appreciation Rights in exchange for cash, other awards or Options or Stock Appreciation Rights with
an exercise price per share that is less than the exercise price per share of the original Options or Stock Appreciation Rights.
SECTION 17.
MISCELLANEOUS
17.1 Invalid
Provisions. In the event that any provision of this Plan is found to be invalid or otherwise unenforceable under any applicable
law, such invalidity or unenforceability will not be construed as rendering any other provisions contained herein as invalid or unenforceable,
and all such other provisions will be given full force and effect to the same extent as though the invalid or unenforceable provision
was not contained herein.
17.2 Section 409A.
The Plan is intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum extent
permitted, the Plan shall be interpreted and administered to be in compliance therewith. Any payments described in the Plan that are due
within the "short-term deferral period" as defined in Section 409A of the Code shall not be treated as deferred compensation
unless applicable laws require otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required to avoid
accelerated taxation and tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that
would otherwise be provided pursuant to the Plan during the six (6) month period immediately following the Participant's Termination
of Service shall instead be paid on the first payroll date after the six-month anniversary of the Participant's separation from service
(or the Participant's death, if earlier). Notwithstanding the foregoing, neither the Company nor the Committee shall have any obligation
to take any action to prevent the assessment of any additional tax or penalty on any Participant under Section 409A of the Code and
neither the Company nor the Committee will have any liability to any Participant for such tax or penalty.
17.3 Disqualifying
Dispositions. Any Participant who shall make a "disposition" (as defined in Section 424 of the Code) of all or
any portion of shares of Common Stock acquired upon exercise of an incentive Stock Option within two years from the grant date of such
incentive Stock Option or within one year after the issuance of the shares of Common Stock acquired upon exercise of such incentive Stock
Option (a "Disqualifying Disposition") shall be required to immediately advise the Company in writing as to the occurrence
of the sale and the price realized upon the sale of such shares of Common Stock.
17.4 Non-Uniform
Treatment. The Committee's determinations under the Plan need not be uniform and may be made by it selectively among persons who
are eligible to receive, or actually receive, Incentive Awards. Without limiting the generality of the foregoing, the Committee shall
be entitled to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform and selective
award agreements.
17.5 Choice
of Law. The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation of
this Plan, without regard to such state's conflict of law rules.
SECTION 18.
EFFECTIVE DATE OF PLAN; TERMINATION OF PLAN
The Plan became effective on October 9, 2020 and terminated on December 19, 2023. No Incentive Awards may be granted under the Plan after the termination
of the Plan.
Exhibit 10.13
INFRARED CAMERAS HOLDINGS, INC.
2020 EQUITY INCENTIVE PLAN
NOTICE OF GRANT OF
[INCENTIVE/NON-QUALIFIED]
STOCK OPTION AND
STOCK OPTION AGREEMENT
You have been granted an option
to purchase shares of Class B non-voting common stock (“Common Stock”) of Infrared Cameras Holdings, Inc.,
a Delaware corporation (the “Company”), subject to the terms and conditions of the Plan and this Agreement, as follows:
Optionee: |
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Grant Date: |
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2020 |
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Number of Shares: |
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Expiration Date: |
, 2030 |
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Exercise Price Per Share: |
$ |
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Cumulative Vesting Schedule: |
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shares
on ,
2020 |
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shares
on ,
2021 |
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shares
on ,
2022 |
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This STOCK OPTION AGREEMENT is executed and delivered
in duplicate, as of the day of ,
2020 by and between Infrared Cameras Holdings, Inc., a Delaware corporation (the “Company”), and the
individual named above (the “Optionee”).
In consideration of the mutual covenants of the
parties set forth below, the parties agree as follows:
1. Grant
of Option. The Company, pursuant to the Company’s 2020 Equity Incentive Plan, as amended
from time to time (the “Plan”), and subject to the terms and conditions of the Plan, grants to the Optionee a Stock
Option (the “Option”) to purchase the above-designated number of shares of Common Stock of the Company at the exercise
price per share designated above. The number of shares and exercise price per share of the Option shall be proportionately adjusted in
the event the Company changes the number of shares of its outstanding Common Stock by reason of a stock dividend or stock split issued
to shareholders, and is otherwise subject to adjustment as provided in the Plan.
2. Exercisability
of Option. The Option shall become first exercisable as described above, and shall in
no event be exercisable after the close of business on the above-designated Expiration Date. Further, the Committee may in its
discretion, at any time accelerate the vesting of the Option on such terms and conditions as it deems appropriate.
| 3. | Time to Exercise Option. |
(a) General.
If the Service of the Optionee terminates for any reason other than Optionee’s death, Disability, or termination for Cause,
Optionee may exercise the Option in accordance with its terms for a period of three months after such termination of Service, but only
to the extent Optionee was entitled to exercise the Option on the date of termination and not beyond the Expiration Date of the Option.
(b) Death.
If Optionee dies while in the Service of the Company, the Option will be 100% vested, and the Optionee's personal representative may exercise
the Option in accordance with its terms for a period of one year after the date of Optionee's death, and not beyond the Expiration Date
of the Option.
(c) Disability.
If Optionee ceases to be in the Service of the Company or one of its Subsidiaries due to Optionee’s Disability, the Option will
be 100% vested, and the Optionee may exercise the Option in accordance with its terms for one year following such termination of Service,
and not beyond the Expiration Date of the Option.
(d) Termination
for Cause. If Optionee’s Service is terminated for Cause, Optionee shall have no further right to exercise this Option and all
of Optionee’s outstanding Options (whether vested or unvested) shall automatically be forfeited and returned to the Company. The
Committee or officers designated by the Committee shall have absolute discretion to determine whether a termination is for Cause.
(e) Non-Competition.
If Optionee engages in the operation or management of a business (whether as owner, partner, officer, director, employee or otherwise
and whether during or after Termination of Service) that is in competition with the Company, or violates a separate non-compete agreement
with the Company or an Affiliate, the Committee may immediately terminate all of Optionee's outstanding Options. The Committee shall have
absolute discretion to determine whether a business competes with the Company, and any such determination by the Committee shall be final
and binding.
4. Method
of Exercise. Optionee, from time to time during the period when the Option may by its terms
be exercised, may exercise the Option in whole or in part, by delivering to the Company:
(a) A
written notice signed by Optionee in substantially the form attached as Exhibit A stating the number of shares that
Optionee has elected to purchase at that time from the Company; and
(b) Cash,
a check, bank draft, money order or wire of funds payable to the Company in an amount equal to the purchase price of the shares then
to be purchased; or in the discretion of the Committee, upon such terms as the Committee shall approve, (i) by delivery to the
Company of other shares of Common Stock, duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery
equal to the option price (or portion thereof) due for the number of shares being acquired; (ii) by a "net exercise"
procedure effected by withholding the minimum number of shares of Common Stock otherwise issuable in respect of the Option that are
needed to pay the option price; (iii) by any combination of the foregoing methods; or (iv) in any other form of legal
consideration that may be acceptable to the Committee.
The value of the shares of the Common Stock delivered
to Optionee shall be the Fair Market Value of the Common Stock as defined in Section 1.13 of the Plan. The Committee, acting pursuant
to the Plan, if it shall deem it necessary or desirable for any reason connected with any law or regulation of any governmental authority
relating to the regulation of securities, may require Optionee to execute and file with it such evidence as it may deem necessary that
Optionee is acquiring such shares for investment and not with a view to their distribution.
5. Optionee’s
Representations. By receipt of this Option, by his or her execution, and by his or her exercise
in whole or in part, Optionee represents to the Company that Optionee understands that:
(a) both
this Option and any shares purchased upon its exercise are securities, the issuance by the Company of which requires compliance with federal
and state securities laws;
(b) these
securities are made available to Optionee only on the condition that Optionee makes the representations contained in this Section 5
to the Company;
(c) Optionee
has made a reasonable investigation of the affairs of the Company sufficient to be well informed as to the rights and the value of these
securities;
(d) Optionee
understands that the securities have not been registered under the Securities Act of 1933, as amended (the “Act”) in reliance
upon one or more specific exemptions contained in the Act, which may include reliance on Rule 701 promulgated under the Act, if available,
or which may depend upon (1) Optionee’s bona fide investment intention in acquiring these securities; (2) Optionee’s
intention to hold these securities in compliance with federal and state securities laws; (3) Optionee having no present intention
of selling or transferring any part thereof (recognizing that the Option is not transferable) in violation of applicable federal and state
securities laws; and (4) there being certain restrictions on transfer of the Shares subject to the Option;
(e) Optionee
understands that the shares subject to this Option, in addition to other restrictions on transfer, must be held indefinitely unless subsequently
registered under the Act, or unless an exemption from registration is available; that Rule 144, the usual exemption from registration,
is only available after the satisfaction of certain holding periods and in the presence of a public market for the shares; that there
is no certainty that a public market for the shares will exist, and that otherwise it will be necessary that the shares be sold pursuant
to another exemption from registration which may be difficult to satisfy; and
(f) Optionee
understands that the certificate representing the shares will bear a legend prohibiting their transfer in the absence of their registration
or the opinion of counsel for the Company that registration is not required, and a legend prohibiting their transfer in compliance with
applicable state securities laws unless otherwise exempted.
6. Non-Transferability
of Option. The Option shall during the lifetime of Optionee be exercisable only by Optionee
in accordance with the terms of the Plan and shall not be assignable or transferable except by will or by the laws of descent and distribution,
or in the event of Disability, by the Optionee’s personal representative.
7. Change
in Control. The Option is subject to the accelerated vesting, exercise and other provisions
of Section 11 of the Plan relating to Change in Control.
8. Continuing
Transfer Restrictions. Shares acquired upon exercise of an Option are subject to continuing
restrictions on transfer set forth in Section 10 of the Plan.
9. Notices.
Any notice by Optionee to the Company under this Agreement shall be in writing and shall be deemed duly given only upon receipt of the
notice by the Company at its principal executive offices addressed to its President. Any notice by the Company to Optionee shall be in
writing or by electronic transmission and shall be deemed duly given if mailed or sent by electronic transmission to Optionee at the address
specified below by Optionee, or to Optionee’s email address at the Company, or to such other address as Optionee may later designate
by notice given to the Company.
10. Acceptance
of the Terms and Conditions of the Plan. The Option and this Agreement are subject to the
terms and conditions of the Plan. The Plan is incorporated in this Agreement by reference and all capitalized terms used in this Agreement
have the meaning set forth in the Plan, unless this Agreement specifies a different meaning. By signing this Agreement, Optionee accepts
the Option, acknowledges receipt of a copy of the Plan and acknowledges that the Option is subject to all the terms and provisions of
the Plan and this Agreement. Optionee further agrees to accept as binding, conclusive and final all decision and interpretations by the
Committee upon any questions arising under the Plan.
11. Continued
Employment or Service. Nothing in this Agreement shall be deemed to create any employment
or guaranty of continued employment or Service or limit in any way the Company’s right to terminate Optionee’s employment
or Service at any time.
12. Governing
Law. The validity, construction and effect of this Agreement shall be governed by the laws
of the State of Delaware.
13. Early
Disposition of Stock. If this Option is an incentive stock option, Optionee understands that
if Optionee disposes of any shares of Common Stock received under the Option within two years after the date of grant or within one year
after such shares of Common Stock were transferred to Optionee, Optionee may be treated for federal and state income tax purposes as having
received ordinary income at the time of such disposition as determined in accordance with the Internal Revenue Code and applicable state
law. Optionee agrees to notify the Company in writing within thirty days after the date of any such disposition. Optionee authorizes the
Company to withhold tax from Optionee's current compensation with respect to any income recognized as a result of any such disposition.
[SIGNATURE PAGE FOLLOWS]
The Company has caused this Agreement to be executed
by its duly authorized officer, and Optionee has executed this Agreement, as of the Grant Date.
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INFRARED CAMERAS HOLDINGS, INC. |
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By: |
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Its: |
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OPTIONEE |
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Optionee acknowledges having received,
read and understood the Plan and this Agreement, and agrees to all of the terms and provisions of this Agreement. |
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(Signature) |
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EXHIBIT A
NOTICE OF EXERCISE
[INCENTIVE/NON-QUALIFIED]
STOCK OPTION
The
undersigned hereby gives notice to Infrared Cameras Holdings, Inc. (the “Company”) of the desire to purchase
shares of Common Stock of the Company pursuant to the Stock Option Agreement dated ,
2020.
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Name: |
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Date: |
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Shares to be Exercised: |
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Per-Share Exercise Price: $ |
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Aggregate Exercise Price: $ (for
all shares being purchased) |
2. Payment.
I understand that the full option exercise price for the shares must be paid in cash in the form of check,
bank draft, money order, or wire of funds payable to “Infrared Cameras Holdings, Inc.” In the discretion of the Committee,
upon such terms as the Committee shall approve, the option exercise price may be paid (i) by delivery to the Company of other shares
of Common Stock, duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery equal to the option price
(or portion thereof) due for the number of shares being acquired; (ii) by a "net exercise" procedure effected by withholding
the minimum number of shares of Common Stock otherwise issuable in respect of the Option that are needed to pay the option price; (iii) by
any combination of the foregoing methods; or (iv) in any other form of legal consideration that may be acceptable to the Committee.
No shares will be issued until the Company has received the full option exercise price.
Exhibit 10.14
INFRARED
CAMERAS HOLDINGS, INC.
FORM OF
2023 INCENTIVE AWARD PLAN
ARTICLE I.
Purpose
The Plan’s purpose is
to enhance the Company’s ability to attract, retain and motivate persons who make (or are expected to make) important contributions
to the Company by providing these individuals with equity ownership opportunities and/or equity-linked compensatory opportunities. Capitalized
terms used in the Plan are defined in Article XI.
ARTICLE II.
Eligibility
Service Providers are eligible
to be granted Awards under the Plan, subject to the limitations described herein.
ARTICLE III.
Administration and Delegation
3.1 Administration.
The Plan is administered by the Administrator. The Administrator has authority to determine which Service Providers receive Awards, grant
Awards and set Award terms and conditions, subject to the conditions and limitations in the Plan. The Administrator also has the authority
to take all actions and make all determinations under the Plan, to interpret the Plan and Award Agreements and to adopt, amend and repeal
Plan administrative rules, guidelines and practices as it deems advisable. The Administrator may correct defects and ambiguities, supply
omissions and reconcile inconsistencies in the Plan or any Award Agreement as it deems necessary or appropriate to administer the Plan
and any Awards. The Administrator’s determinations under the Plan are in its sole discretion and will be final and binding on all
persons having or claiming any interest in the Plan or any Award.
3.2 Appointment
of Committees. To the extent Applicable Laws permit, the Board or the Administrator may delegate any or all of its powers under the
Plan to one or more Committees or committees of officers of the Company or any of its Subsidiaries. The Board or the Administrator, as
applicable, may rescind any such delegation, abolish any such committee or Committee and/or re-vest in itself any previously delegated
authority at any time.
ARTICLE IV.
Stock Available for Awards
4.1 Number
of Shares. Subject to adjustment under Article VIII and the terms of this Article IV, Awards may be made under the Plan
covering up to the Overall Share Limit. As of the Effective Date, the Company will cease granting awards under the Prior Plan; however,
the Prior Plan Awards will remain subject to the terms of the Prior Plan. Shares issued under the Plan may consist of authorized but unissued
Shares, Shares purchased on the open market or treasury Shares.
4.2 Share
Recycling. If all or any part of an Award or Prior Plan Award expires, lapses or is terminated, exchanged for or settled in cash,
surrendered, repurchased, canceled without having been fully exercised or forfeited, in any case, in a manner that results in the Company
acquiring Shares covered by the Award or Prior Plan Award at a price not greater than the price (as adjusted to reflect any Equity Restructuring)
paid by the Participant for such Shares or not issuing any Shares covered by the Award or Prior Plan Award, the unused Shares covered
by the Award or Prior Plan Award will, as applicable, become or again be available for Award grants under the Plan. Further, Shares delivered
(either by actual delivery or attestation) to the Company by a Participant to satisfy the applicable exercise or purchase price of an
Award and/or to satisfy any applicable tax withholding obligation with respect to an Award (including Shares retained by the Company from
the Award being exercised or purchased and/or creating the tax obligation) will, as applicable, become or again be available for Award
grants under the Plan. The payment of Dividend Equivalents in cash in conjunction with any outstanding Awards shall not count against
the Overall Share Limit. Notwithstanding anything to the contrary contained herein, the following Shares shall not be added to the Shares
authorized for grant under Section 4.1 and shall not be available for future grants of Awards: (a) Shares subject to a Stock
Appreciation Right that are not issued in connection with the stock settlement of the Stock Appreciation Right on exercise thereof; and
(b) Shares purchased on the open market with the cash proceeds from the exercise of Options.
4.3 Incentive
Stock Option Limitations. Notwithstanding anything to the contrary herein, no more than 3,040,486 Shares may be issued pursuant to
the exercise of Incentive Stock Options.
4.4 Substitute
Awards. In connection with an entity’s merger or consolidation with the Company or the Company’s acquisition of an entity’s
property or stock, the Administrator may grant Awards in substitution for any options or other stock or stock-based awards granted before
such merger or consolidation by such entity or its affiliate. Substitute Awards may be granted on such terms as the Administrator deems
appropriate, notwithstanding limitations on Awards in the Plan. Substitute Awards will not count against the Overall Share Limit (nor
shall Shares subject to a Substitute Award be added to the Shares available for Awards under the Plan as provided above), except that
Shares acquired by exercise of substitute Incentive Stock Options will count against the maximum number of Shares that may be issued pursuant
to the exercise of Incentive Stock Options under the Plan. Additionally, in the event that a company acquired by the Company or any Subsidiary
or with which the Company or any Subsidiary combines has shares available under a pre-existing plan approved by stockholders and not adopted
in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as
adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition
or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination)
may be used for Awards under the Plan and shall not reduce the Shares authorized for grant under the Plan (and Shares subject to such
Awards shall not be added to the Shares available for Awards under the Plan as provided above); provided that Awards using such available
shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition
or combination, and shall only be made to individuals who were not Employees, Consultants or Directors prior to such acquisition or combination.
4.5 Non-Employee
Director Compensation. Notwithstanding any provision to the contrary in the Plan, the Administrator may establish compensation for
non-employee Directors from time to time, subject to the limitations in the Plan. The Administrator will from time to time determine the
terms, conditions and amounts of all such non-employee Director compensation in its discretion and pursuant to the exercise of its business
judgment, taking into account such factors, circumstances and considerations as it shall deem relevant from time to time, provided that
the sum of any cash compensation, or other compensation, and the value (determined as of the grant date in accordance with Financial Accounting
Standards Board Accounting Standards Codification Topic 718, or any successor thereto) of Awards granted to a non-employee Director as
compensation for services as a non-employee Director during any calendar year of the Company may not exceed $750,000 (increased to $1,000,000
in the calendar year of a non-employee Director’s initial service as a non-employee director or any calendar year during which a
non-employee Director serves as chairman of the Board or lead independent Director, which limits shall not apply to the compensation for
any non-employee Director of the Company who serves in any capacity in addition to that of a non-employee Director for which he or she
receives additional compensation or any compensation paid to any non-employee Director prior to the calendar year following the calendar
year in which the Plan’s effective date occurs). The Administrator may make exceptions to this limit for individual non-employee
Directors in extraordinary circumstances, as the Administrator may determine in its discretion, provided that the non-employee Director
receiving such additional compensation may not participate in the decision to award such compensation or in other contemporaneous compensation
decisions involving non-employee Directors.
ARTICLE V.
Stock Options and Stock Appreciation Rights
5.1 General.
The Administrator may grant Options or Stock Appreciation Rights to Service Providers subject to the limitations in the Plan, including
any limitations in the Plan that apply to Incentive Stock Options. A Stock Appreciation Right will entitle the Participant (or other person
entitled to exercise the Stock Appreciation Right) to receive from the Company upon exercise of the exercisable portion of the Stock Appreciation
Right an amount determined by multiplying the excess, if any, of the Fair Market Value of one Share on the date of exercise over the exercise
price per Share of the Stock Appreciation Right by the number of Shares with respect to which the Stock Appreciation Right is exercised,
subject to any limitations of the Plan or that the Administrator may impose and payable in cash, Shares valued at Fair Market Value or
a combination of the two as the Administrator may determine or provide in the Award Agreement.
5.2 Exercise
Price. The Administrator will establish each Option’s and Stock Appreciation Right’s exercise price and specify the exercise
price in the Award Agreement. The exercise price will not be less than 100% of the Fair Market Value on the grant date of the Option (subject
to Section 5.6) or Stock Appreciation Right.
5.3 Duration.
Each Option or Stock Appreciation Right will be exercisable at such times and as specified in the Award Agreement, provided that, subject
to Section 5.6, the term of an Option or Stock Appreciation Right will not exceed ten years. Notwithstanding the foregoing and unless
determined otherwise by the Company, in the event that on the last business day of the term of an Option or Stock Appreciation Right (other
than an Incentive Stock Option) (i) the exercise of the Option or Stock Appreciation Right is prohibited by Applicable Law, as determined
by the Company, or (ii) Shares may not be purchased or sold by the applicable Participant due to any Company insider trading policy
(including blackout periods) or a “lock-up” agreement undertaken in connection with an issuance of securities by the Company,
the term of the Option or Stock Appreciation Right shall be extended until the date that is 30 days after the end of the legal prohibition,
black-out period or lock-up agreement, as determined by the Company; provided, however, in no event shall the extension last beyond the
ten year term of the applicable Option or Stock Appreciation Right. Notwithstanding the foregoing, to the extent permitted under Applicable
Laws, if the Participant, prior to the end of the term of an Option or Stock Appreciation Right, violates the non-competition, non-solicitation,
confidentiality or other similar restrictive covenant provisions of any employment contract, confidentiality and nondisclosure agreement
or other agreement between the Participant and the Company or any of its Subsidiaries, the right of the Participant and the Participant’s
transferees to exercise any Option or Stock Appreciation Right issued to the Participant shall terminate immediately upon such violation,
unless the Company otherwise determines.
5.4 Exercise.
Options and Stock Appreciation Rights may be exercised by delivering to the Company a written notice of exercise, in a form the Administrator
approves (which may be electronic), signed by the person authorized to exercise the Option or Stock Appreciation Right, together with,
as applicable, payment in full (i) as specified in Section 5.5 for the number of Shares for which the Award is exercised and
(ii) as specified in Section 9.5 for any applicable taxes. Unless the Administrator otherwise determines, an Option or Stock
Appreciation Right may not be exercised for a fraction of a Share.
5.5 Payment
Upon Exercise. Subject to Sections 9.10 and 10.8, any Company insider trading policy (including blackout periods) and Applicable
Laws, the exercise price of an Option must be paid by:
(a) cash,
wire transfer of immediately available funds or by check payable to the order of the Company, provided that the Company may limit the
use of one of the foregoing payment forms if one or more of the payment forms below is permitted;
(b) if
there is a public market for Shares at the time of exercise, unless the Company otherwise determines, (A) delivery (including electronically
or telephonically to the extent permitted by the Company) of an irrevocable and unconditional undertaking by a broker acceptable to the
Company to deliver promptly to the Company sufficient funds to pay the exercise price, or (B) the Participant’s delivery to
the Company of a copy of irrevocable and unconditional instructions to a broker acceptable to the Company to deliver promptly to the Company
cash or a check sufficient to pay the exercise price; provided that such amount is paid to the Company at such time as may be required
by the Administrator;
(c) to
the extent permitted by the Administrator, delivery (either by actual delivery or attestation) of Shares owned by the Participant valued
at their Fair Market Value;
(d) to
the extent permitted by the Administrator, surrendering Shares then issuable upon the Option’s exercise valued at their Fair Market
Value on the exercise date;
(e) to
the extent permitted by the Administrator, delivery of a promissory note or any other property that the Administrator determines is good
and valuable consideration; or
(f) to
the extent permitted by the Company, any combination of the above payment forms approved by the Administrator.
5.6 Additional
Terms of Incentive Stock Options. The Administrator may grant Incentive Stock Options only to employees of the Company, any of its
present or future parent or subsidiary corporations, as defined in Sections 424(e) or (f) of the Code, respectively, and
any other entities the employees of which are eligible to receive Incentive Stock Options under the Code. If an Incentive Stock Option
is granted to a Greater Than 10% Stockholder, the exercise price will not be less than 110% of the Fair Market Value on the Option’s
grant date, and the term of the Option will not exceed five years. All Incentive Stock Options will be subject to and construed consistently
with Section 422 of the Code. By accepting an Incentive Stock Option, the Participant agrees to give prompt notice to the Company
of dispositions or other transfers (other than in connection with a Change in Control) of Shares acquired under the Option made within
(i) two years from the grant date of the Option or (ii) one year after the transfer of such Shares to the Participant, specifying
the date of the disposition or other transfer and the amount the Participant realized, in cash, other property, assumption of indebtedness
or other consideration, in such disposition or other transfer. Neither the Company nor the Administrator will be liable to a Participant,
or any other party, if an Incentive Stock Option fails or ceases to qualify as an “incentive stock option” under Section 422
of the Code. Any Incentive Stock Option or portion thereof that fails to qualify as an “incentive stock option” under Section 422
of the Code for any reason, including becoming exercisable with respect to Shares having a fair market value exceeding the $100,000 limitation
under Treasury Regulation Section 1.422-4, will be a Non-Qualified Stock Option.
ARTICLE VI.
Restricted Stock; Restricted Stock Units
6.1 General.
The Administrator may grant Restricted Stock, or the right to purchase Restricted Stock, to any Service Provider, subject to the Company’s
right to repurchase all or part of such Shares at their issue price or other stated or formula price from the Participant (or to require
forfeiture of such Shares) if conditions the Administrator specifies in the Award Agreement are not satisfied before the end of the applicable
restriction period or periods that the Administrator establishes for such Award. In addition, the Administrator may grant to Service Providers
Restricted Stock Units, which may be subject to vesting and forfeiture conditions during the applicable restriction period or periods,
as set forth in an Award Agreement.
6.2 Restricted
Stock.
(a) Dividends.
Participants holding Shares of Restricted Stock will be entitled to all ordinary cash dividends paid with respect to such Shares, unless
the Administrator provides otherwise in the Award Agreement. In addition, unless the Administrator provides otherwise, if any dividends
or distributions are paid in Shares, or consist of a dividend or distribution to holders of Common Stock of property other than an ordinary
cash dividend, the Shares or other property will be subject to the same restrictions on transferability and forfeitability as the Shares
of Restricted Stock with respect to which they were paid. Notwithstanding anything to the contrary herein, with respect to any award of
Restricted Stock, dividends which are paid to holders of Common Stock prior to vesting shall only be paid out to a Participant holding
such Restricted Stock to the extent that the vesting conditions are subsequently satisfied. All such dividend payments will be made no
later than March 15 of the calendar year following the calendar year in which the right to the dividend payment becomes nonforfeitable.
(b) Stock
Certificates. The Company may require that the Participant deposit in escrow with the Company (or its designee) any stock certificates
issued in respect of Shares of Restricted Stock, together with a stock power endorsed in blank.
6.3 Restricted
Stock Units.
(a) Settlement.
The Administrator may provide that settlement of Restricted Stock Units will occur upon or as soon as reasonably practicable after the
Restricted Stock Units vest or will instead be deferred, on a mandatory basis or at the Participant’s election, in a manner intended
to comply with Section 409A.
(b) Stockholder
Rights. A Participant will have no rights of a stockholder with respect to Shares subject to any Restricted Stock Unit unless and
until the Shares are delivered in settlement of the Restricted Stock Unit.
ARTICLE VII.
Other Stock or Cash Based Awards; DIVIDEND EQUIVALENTS
7.1 Other
Stock or Cash Based Awards. Other Stock or Cash Based Awards may be granted to Participants, including Awards entitling Participants
to receive Shares to be delivered in the future and including annual or other periodic or long-term cash bonus awards (whether based on
specified Performance Criteria or otherwise), in each case subject to any conditions and limitations in the Plan. Such Other Stock or
Cash Based Awards will also be available as a payment form in the settlement of other Awards, as standalone payments and as payment in
lieu of compensation to which a Participant is otherwise entitled. Other Stock or Cash Based Awards may be paid in Shares, cash or other
property, as the Administrator determines.
7.2 Dividend
Equivalents. A grant of Restricted Stock Units or Other Stock or Cash Based Award may provide a Participant with the right to receive
Dividend Equivalents, and no Dividend Equivalents shall be payable with respect to Options or Stock Appreciation Rights. Dividend Equivalents
may be paid currently or credited to an account for the Participant, settled in cash or Shares and subject to the same restrictions on
transferability and forfeitability as the Award with to which the Dividend Equivalents are paid and subject to other terms and conditions
as set forth in the Award Agreement. Notwithstanding anything to the contrary herein, Dividend Equivalents with respect to an Award shall
only be paid out to a Participant to the extent that the vesting conditions are subsequently satisfied. All such Dividend Equivalent payments
will be made no later than March 15 of the calendar year following the calendar year in which the right to the Dividend Equivalent
payment becomes nonforfeitable, unless determined otherwise by the Administrator or unless deferred in a manner intended to comply with
Section 409A.
ARTICLE VIII.
Adjustments for Changes in Common Stock
and Certain Other Events
8.1 Equity
Restructuring. In connection with any Equity Restructuring, notwithstanding anything to the contrary
in this Article VIII, the Administrator will equitably adjust each outstanding Award as it deems appropriate to reflect the Equity
Restructuring, which may include (if applicable) adjusting the number and type of securities subject to each outstanding Award, the Award’s
exercise price or grant price and/or applicable performance goals, granting new Awards to Participants, and making a cash payment to Participants.
The adjustments provided under this Section 8.1 will be nondiscretionary and final and binding on the affected Participant and the
Company; provided that the Administrator will determine whether an adjustment is equitable.
8.2 Corporate
Transactions. In the event of any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or
other property), reorganization, merger, consolidation, combination, amalgamation, repurchase, recapitalization, liquidation, dissolution,
or sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company, or sale or exchange of Common
Stock or other securities of the Company, Change in Control, issuance of warrants or other rights to purchase Common Stock or other securities
of the Company, other similar corporate transaction or event, other unusual or nonrecurring transaction or event affecting the Company
or its financial statements or any change in any Applicable Laws or accounting principles, the Administrator, on such terms and conditions
as it deems appropriate, either by the terms of the Award or by action taken in connection with the occurrence of such transaction or
event (and any action to give effect to a change in Applicable Law or accounting principles may be made within a reasonable period of
time after such change), is hereby authorized to take any one or more of the following actions whenever the Administrator determines that
such action is appropriate in order to (x) prevent dilution or enlargement of the benefits or potential benefits intended by the
Company to be made available under the Plan or with respect to any Award granted or issued under the Plan, (y) to facilitate such
transaction or event or (z) give effect to such changes in Applicable Laws or accounting principles:
(a) To
provide for the cancellation of any such Award in exchange for either an amount of cash or other property with a value equal to the amount
that could have been obtained upon the exercise or settlement of the vested portion of such Award or realization of the Participant’s
rights under the vested portion of such Award, as applicable; provided that, if the amount that could have been obtained upon the exercise
or settlement of the vested portion of such Award or realization of the Participant’s rights, in any case, is equal to or less than
zero, then the Award may be terminated without payment; provided, further, that Awards held by members of the Board will be deemed settled
in Shares on or immediately prior to the applicable event if the Administrator takes action under this clause (a);
(b) To
provide that such Award shall vest and, to the extent applicable, be exercisable as to all Shares covered thereby, notwithstanding anything
to the contrary in the Plan or the provisions of such Award;
(c) To
provide that such Award be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted
for by awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, or equivalent value thereof
in cash, with appropriate adjustments as to the number and kind of shares and/or applicable exercise or purchase price, in all cases,
as determined by the Administrator;
(d) To
make adjustments in the number and type of Shares (or other securities or property) subject to outstanding Awards and/or with respect
to which Awards may be granted under the Plan (including, but not limited to, adjustments of the limitations in Article IV on the
maximum number and kind of shares which may be issued) and/or in the terms and conditions of (including the grant or exercise price or
applicable performance goals), and the criteria included in, outstanding Awards;
(e) To
replace such Award with other rights or property selected by the Administrator; and/or
(f) To
provide that the Award will terminate and cannot vest, be exercised or become payable after the applicable event.
8.3 Effect
of Non-Assumption in a Change in Control. Notwithstanding the provisions of Section 8.2, if a Change in Control occurs and a
Participant’s Awards are not continued, converted, assumed, or replaced with a substantially similar award by (a) the Company,
or (b) a successor entity or its parent or subsidiary (an “Assumption”), and provided that the Participant
has not had a Termination of Service, then, immediately prior to the Change in Control, such Awards shall become fully vested, exercisable
and/or payable, as applicable, and all forfeiture, repurchase and other restrictions on such Awards shall lapse, in which case, such Awards
shall be canceled upon the consummation of the Change in Control in exchange for the right to receive the Change in Control consideration
payable to other holders of Common Stock (i) which may be on such terms and conditions as apply generally to holders of Common Stock
under the Change in Control documents (including, without limitation, any escrow, earn-out or other deferred consideration provisions)
or such other terms and conditions as the Administrator may provide, and (ii) determined by reference to the number of Shares subject
to such Awards and net of any applicable exercise price; provided that to the extent that any Awards constitute “nonqualified
deferred compensation” that may not be paid upon the Change in Control under Section 409A without the imposition of taxes thereon
under Section 409A, the timing of such payments shall be governed by the applicable Award Agreement (subject to any deferred consideration
provisions applicable under the Change in Control documents); and provided, further, that if the amount to which a Participant
would be entitled upon the settlement or exercise of such Award at the time of the Change in Control is equal to or less than zero, then
such Award may be terminated without payment. The Administrator shall determine whether an Assumption of an Award has occurred in connection
with a Change in Control.
8.4 Administrative
Stand Still. In the event of any pending stock dividend, stock split, combination or exchange of shares, merger, consolidation or
other distribution (other than normal cash dividends) of Company assets to stockholders, or any other extraordinary transaction or change
affecting the Shares or the Share price, including any Equity Restructuring or any securities offering or other similar transaction, for
administrative convenience, the Administrator may refuse to permit the exercise of any Award for up to 60 days before or after such transaction.
8.5 General.
Except as expressly provided in the Plan or the Administrator’s action under the Plan, no Participant will have any rights due to
any subdivision or consolidation of Shares of any class, dividend payment, increase or decrease in the number of Shares of any class or
dissolution, liquidation, merger, or consolidation of the Company or other corporation. Except as expressly provided with respect to an
Equity Restructuring under Section 8.1 or the Administrator’s action under the Plan, no issuance by the Company of Shares of
any class, or securities convertible into Shares of any class, will affect, and no adjustment will be made regarding, the number of Shares
subject to an Award or the Award’s grant or exercise price. The existence of the Plan, any Award Agreements and the Awards granted
hereunder will not affect or restrict in any way the Company’s right or power to make or authorize (i) any adjustment, recapitalization,
reorganization or other change in the Company’s capital structure or its business, (ii) any merger, consolidation dissolution
or liquidation of the Company or sale of Company assets or (iii) any sale or issuance of securities, including securities with rights
superior to those of the Shares or securities convertible into or exchangeable for Shares. The Administrator may treat Participants and
Awards (or portions thereof) differently under this Article VIII.
ARTICLE IX.
General Provisions Applicable to Awards
9.1 Transferability.
Except as the Administrator may determine or provide in an Award Agreement or otherwise for Awards other than Incentive Stock Options,
Awards may not be sold, assigned, transferred, pledged or otherwise encumbered, either voluntarily or by operation of law, except for
certain Designated Beneficiary designations, by will or the laws of descent and distribution, or, subject to the Administrator’s
consent, pursuant to a domestic relations order, and, during the life of the Participant, will be exercisable only by the Participant.
Any permitted transfer of an Award hereunder shall be without consideration, except as required by Applicable Law. References to a Participant,
to the extent relevant in the context, will include references to a Participant’s authorized transferee that the Administrator specifically
approves.
9.2 Documentation.
Each Award will be evidenced in an Award Agreement, which may be written or electronic, as the Administrator determines. Each Award may
contain terms and conditions in addition to those set forth in the Plan.
9.3 Discretion.
Except as the Plan otherwise provides, each Award may be made alone or in addition or in relation to any other Award. The terms of each
Award to a Participant need not be identical, and the Administrator need not treat Participants or Awards (or portions thereof) uniformly.
9.4 Termination
of Status. The Administrator will determine how the disability, death, retirement, an authorized leave of absence or any other change
or purported change in a Participant’s Service Provider status affects an Award and the extent to which, and the period during which,
the Participant, the Participant’s legal representative, conservator, guardian or Designated Beneficiary may exercise rights under
the Award, if applicable.
9.5 Withholding.
Each Participant must pay the Company, or make provision satisfactory to the Administrator for payment of, any taxes required by Applicable
Law to be withheld in connection with such Participant’s Awards by the date of the event creating the tax liability. The Company
may deduct an amount sufficient to satisfy such tax obligations based on the applicable statutory withholding rates (or such other rate
as may be determined by the Company after considering any accounting consequences or costs) from any payment of any kind otherwise due
to a Participant. In the absence of a contrary determination by the Company (or, with respect to withholding pursuant to clause (ii) below
with respect to Awards held by individuals subject to Section 16 of the Exchange Act, a contrary determination by the Administrator),
all tax withholding obligations will be calculated based on the minimum applicable statutory withholding rates. Subject to Section 10.8
and any Company insider trading policy (including blackout periods), Participants may satisfy such tax obligations (i) in cash, by
wire transfer of immediately available funds, by check made payable to the order of the Company, provided that the Company may limit the
use of the foregoing payment forms if one or more of the payment forms below is permitted, (ii) to the extent permitted by the Administrator,
in whole or in part by delivery of Shares, including Shares delivered by attestation and Shares retained from the Award creating the tax
obligation, valued at their fair market value on the date of delivery, (iii) subject to Section 9.10, if there is a public market
for Shares at the time the tax obligations are satisfied, unless the Company otherwise determines, (A) delivery (including electronically
or telephonically to the extent permitted by the Company) of an irrevocable and unconditional undertaking by a broker acceptable to the
Company to deliver promptly to the Company sufficient funds to satisfy the tax obligations, or (B) delivery by the Participant to
the Company of a copy of irrevocable and unconditional instructions to a broker acceptable to the Company to deliver promptly to the Company
cash or a check sufficient to satisfy the tax withholding; provided that such amount is paid to the Company at such time as may be required
by the Administrator, or (iv) to the extent permitted by the Company, any combination of the foregoing payment forms approved by
the Administrator. Notwithstanding any other provision of the Plan, the number of Shares which may be so delivered or retained pursuant
to clause (ii) of the immediately preceding sentence shall be limited to the number of Shares which have a fair market value on the
date of delivery or retention no greater than the aggregate amount of such liabilities based on the maximum applicable individual statutory
withholding rate in the applicable jurisdiction at the time of such withholding (or such other rate as may be required to avoid the liability
classification of the applicable award under generally accepted accounting principles in the United States of America). Subject to Section 9.10,
if any tax withholding obligation will be satisfied under clause (ii) above by the Company’s retention of Shares from the Award
creating the tax obligation and there is a public market for Shares at the time the tax obligation is satisfied, the Company may elect
to instruct any brokerage firm determined acceptable to the Company for such purpose to sell on the applicable Participant’s behalf
some or all of the Shares retained and to remit the proceeds of the sale to the Company or its designee, and each Participant’s
acceptance of an Award under the Plan will constitute the Participant’s authorization to the Company and instruction and authorization
to such brokerage firm to complete the transactions described in this sentence.
9.6 Amendment
of Award; Repricing. The Administrator may amend, modify or terminate any outstanding Award, including by substituting another Award
of the same or a different type, changing the exercise or settlement date, and converting an Incentive Stock Option to a Non-Qualified
Stock Option. The Participant’s consent to such action will be required unless (i) the action, taking into account any related
action, does not materially and adversely affect the Participant’s rights under the Award, or (ii) the change is permitted
under Article VIII or pursuant to Section 10.6. Notwithstanding the foregoing or anything in the Plan to the contrary, the Administrator
may, without the approval of the stockholders of the Company, reduce the exercise price per share of outstanding Options or Stock Appreciation
Rights or cancel outstanding Options or Stock Appreciation Rights in exchange for cash, other Awards or Options or Stock Appreciation
Rights with an exercise price per share that is less than the exercise price per share of the original Options or Stock Appreciation Rights.
9.7 Conditions
on Delivery of Stock. The Company will not be obligated to deliver any Shares under the Plan or remove restrictions from Shares previously
delivered under the Plan until (i) all Award conditions have been met or removed to the Company’s satisfaction, (ii) as
determined by the Company, all other legal matters regarding the issuance and delivery of such Shares have been satisfied, including any
applicable securities laws and stock exchange or stock market rules and regulations, and (iii) the Participant has executed
and delivered to the Company such representations or agreements as the Administrator deems necessary or appropriate to satisfy any Applicable
Laws. The Company’s inability to obtain authority from any regulatory body having jurisdiction, which the Administrator determines
is necessary to the lawful issuance and sale of any securities, will relieve the Company of any liability for failing to issue or sell
such Shares as to which such requisite authority has not been obtained.
9.8 Acceleration.
The Administrator may at any time provide that any Award will become immediately vested and fully or partially exercisable, free of some
or all restrictions or conditions, or otherwise fully or partially realizable.
9.9 Cash
Settlement. Without limiting the generality of any other provision of the Plan, the Administrator may provide, in an Award Agreement
or subsequent to the grant of an Award, in its discretion, that any Award may be settled in cash, Shares or a combination thereof.
9.10 Broker-Assisted
Sales. In the event of a broker-assisted sale of Shares in connection with the payment of amounts
owed by a Participant under or with respect to the Plan or Awards, including amounts to be paid under the final sentence of Section 9.5
above: (a) any Shares to be sold through the broker-assisted sale will be sold on the day the payment first becomes due, or as soon
thereafter as practicable; (b) such Shares may be sold as part of a block trade with other Participants in the Plan in which all
Participants receive an average price; (c) the applicable Participant will be responsible for all broker’s fees and other costs
of sale, and by accepting an Award, each Participant agrees to indemnify and hold the Company harmless from any losses, costs, damages,
or expenses relating to any such sale; (d) to the extent the Company or its designee receives proceeds of such sale that exceed the
amount owed, the Company will pay such excess in cash to the applicable Participant as soon as reasonably practicable; (e) the Company
and its designees are under no obligation to arrange for such sale at any particular price; and (f) in the event the proceeds of
such sale are insufficient to satisfy the Participant’s applicable obligation, the Participant may be required to pay immediately
upon demand to the Company or its designee an amount in cash sufficient to satisfy any remaining portion of the Participant’s obligation.
ARTICLE X.
Miscellaneous
10.1 No
Right to Employment or Other Status. No person will have any claim or right to be granted an Award, and the grant of an Award will
not be construed as giving a Participant the right to continued employment or any other relationship with the Company or any of its Subsidiaries.
The Company and its Subsidiaries expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant
free from any liability or claim under the Plan or any Award, except as expressly provided in an Award Agreement or in the Plan.
10.2 No
Rights as Stockholder; Certificates. Subject to the Award Agreement, no Participant or Designated Beneficiary will have any rights
as a stockholder with respect to any Shares to be distributed under an Award until becoming the record holder of such Shares. Notwithstanding
any other provision of the Plan, unless the Administrator otherwise determines or Applicable Laws require, the Company will not be required
to deliver to any Participant certificates evidencing Shares issued in connection with any Award and instead such Shares may be recorded
in the books of the Company (or, as applicable, its transfer agent or stock plan administrator). The Company may place legends on stock
certificates issued under the Plan that the Administrator deems necessary or appropriate to comply with Applicable Laws.
10.3 Effective
Date and Term of Plan. Unless earlier terminated by the Board, the Plan will become effective as of December 19, 2023 (the “Effective
Date”) and will remain in effect until the tenth anniversary of the Effective Date. Notwithstanding anything to the contrary
in the Plan, an Incentive Stock Option may not be granted under the Plan after 10 years from the earlier of (i) the date the Board
adopted the Plan or (ii) the date the Company’s stockholders approved the Plan, but Awards previously granted may extend beyond
that date in accordance with the Plan. Notwithstanding anything to the contrary contained herein, if the Plan is not approved by the Company’s
stockholders, the Plan will not become effective and no Awards will be granted under the Plan, and the Prior Plan will continue in full
force and effect in accordance with its terms.
10.4 Amendment
of Plan. The Administrator may amend, suspend or terminate the Plan at any time; provided that no amendment, other than an increase
to the Overall Share Limit, may materially and adversely affect any Award outstanding at the time of such amendment without the affected
Participant’s consent. No Awards may be granted under the Plan during any suspension period or after the Plan’s termination.
Awards outstanding at the time of any Plan suspension or termination will continue to be governed by the Plan and the Award Agreement,
as in effect before such suspension or termination. The Board will obtain stockholder approval of any Plan amendment to the extent necessary
to comply with Applicable Laws.
10.5 Provisions
for Foreign Participants. The Administrator may modify Awards granted to Participants who are foreign nationals or employed outside
the United States or establish subplans or procedures under the Plan to address differences in laws, rules, regulations or customs of
such foreign jurisdictions with respect to tax, securities, currency, employee benefit or other matters.
10.6 Section 409A.
(a) General.
The Company intends that all Awards be structured to comply with, or be exempt from, Section 409A, such that no adverse tax consequences,
interest, or penalties under Section 409A apply. Notwithstanding anything in the Plan or any Award Agreement to the contrary, the
Administrator may, without a Participant’s consent, amend this Plan or Awards, adopt policies and procedures, or take any other
actions (including amendments, policies, procedures and retroactive actions) as are necessary or appropriate to preserve the intended
tax treatment of Awards, including any such actions intended to (A) exempt this Plan or any Award from Section 409A, or (B) comply
with Section 409A, including regulations, guidance, compliance programs and other interpretative authority that may be issued after
an Award’s grant date. The Company makes no representations or warranties as to an Award’s tax treatment under Section 409A
or otherwise. The Company will have no obligation under this Section 10.6 or otherwise to avoid the taxes, penalties or interest
under Section 409A with respect to any Award and will have no liability to any Participant or any other person if any Award, compensation
or other benefits under the Plan are determined to constitute noncompliant “nonqualified deferred compensation” subject to
taxes, penalties or interest under Section 409A.
(b) Separation
from Service. If an Award constitutes “nonqualified deferred compensation” under Section 409A, any payment or settlement
of such Award upon a termination of a Participant’s Service Provider relationship will, to the extent necessary to avoid taxes under
Section 409A, be made only upon the Participant’s “separation from service” (within the meaning of Section 409A),
whether such “separation from service” occurs upon or after the termination of the Participant’s Service Provider relationship.
For purposes of this Plan or any Award Agreement relating to any such payments or benefits, references to a “termination,”
“termination of employment” or like terms means a “separation from service.”
(c) Payments
to Specified Employees. Notwithstanding any contrary provision in the Plan or any Award Agreement, any payment(s) of “nonqualified
deferred compensation” required to be made under an Award to a “specified employee” (as defined under Section 409A
and as the Administrator determines) due to his or her “separation from service” will, to the extent necessary to avoid taxes
under Section 409A(a)(2)(B)(i) of the Code, be delayed for the six-month period immediately following such “separation
from service” (or, if earlier, until the specified employee’s death) and will instead be paid (as set forth in the Award Agreement)
on the day immediately following such six-month period or as soon as administratively practicable thereafter (without interest). Any payments
of “nonqualified deferred compensation” under such Award payable more than six months following the Participant’s “separation
from service” will be paid at the time or times the payments are otherwise scheduled to be made. Furthermore, notwithstanding any
contrary provision of the Plan or any Award Agreement, any payment of “nonqualified deferred compensation” under the Plan
that may be made in installments shall be treated as a right to receive a series of separate and distinct payments.
10.7 Limitations
on Liability. Notwithstanding any other provisions of the Plan, no individual acting as a director, officer, other employee or agent
of the Company or any Subsidiary will be liable to any Participant, former Participant, spouse, beneficiary, or any other person for any
claim, loss, liability, or expense incurred in connection with the Plan or any Award, and such individual will not be personally liable
with respect to the Plan because of any contract or other instrument executed in his or her capacity as an Administrator, director, officer,
other employee or agent of the Company or any Subsidiary. The Company will indemnify and hold harmless each director, officer, other employee
and agent of the Company or any Subsidiary that has been or will be granted or delegated any duty or power relating to the Plan’s
administration or interpretation, against any cost or expense (including attorneys’ fees) or liability (including any sum paid in
settlement of a claim with the Administrator’s approval) arising from any act or omission concerning this Plan unless arising from
such person’s own fraud or bad faith.
10.8 Lock-Up
Period. The Company may, at the request of any underwriter representative or otherwise, in connection with registering the offering
of any Company securities under the Securities Act, prohibit Participants from, directly or indirectly, selling or otherwise transferring
any Shares or other Company securities during a period of up to 180 days following the effective date of a Company registration statement
filed under the Securities Act, or such longer period as determined by the underwriter.
10.9 Data
Privacy. As a condition for receiving any Award, each Participant explicitly and unambiguously consents to the collection, use and
transfer, in electronic or other form, of personal data as described in this section by and among the Company and its Subsidiaries and
affiliates exclusively for implementing, administering and managing the Participant’s participation in the Plan. The Company and
its Subsidiaries and affiliates may hold certain personal information about a Participant, including the Participant’s name, address
and telephone number; birthdate; social security, insurance number or other identification number; salary; nationality; job title(s);
any Shares held in the Company or its Subsidiaries and affiliates; and Award details, to implement, manage and administer the Plan and
Awards (the “Data”). The Company and its Subsidiaries and affiliates may transfer the Data amongst themselves
as necessary to implement, administer and manage a Participant’s participation in the Plan, and the Company and its Subsidiaries
and affiliates may transfer the Data to third parties assisting the Company with Plan implementation, administration and management. These
recipients may be located in the Participant’s country, or elsewhere, and the Participant’s country may have different data
privacy laws and protections than the recipients’ country. By accepting an Award, each Participant authorizes such recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, to implement, administer and manage the Participant’s
participation in the Plan, including any required Data transfer to a broker or other third party with whom the Company or the Participant
may elect to deposit any Shares. The Data related to a Participant will be held only as long as necessary to implement, administer, and
manage the Participant’s participation in the Plan. A Participant may, at any time, view the Data that the Company holds regarding
such Participant, request additional information about the storage and processing of the Data regarding such Participant, recommend any
necessary corrections to the Data regarding the Participant or refuse or withdraw the consents in this Section 10.9 in writing, without
cost, by contacting the local human resources representative. If the Participant refuses or withdraws the consents in this Section 10.9,
the Company may cancel Participant’s ability to participate in the Plan and, in the Administrator’s discretion, the Participant
may forfeit any outstanding Awards. For more information on the consequences of refusing or withdrawing consent, Participants may contact
their local human resources representative.
10.10 Severability.
If any portion of the Plan or any action taken under it is held illegal or invalid for any reason, the illegality or invalidity will not
affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the illegal or invalid provisions had been excluded,
and the illegal or invalid action will be null and void.
10.11 Governing
Documents. If any contradiction occurs between the Plan and any Award Agreement or other written agreement between a Participant and
the Company (or any Subsidiary) that the Administrator has approved, the Plan will govern, unless it is expressly specified in such Award
Agreement or other written document that a specific provision of the Plan will not apply.
10.12 Governing
Law. The Plan and all Awards will be governed by and interpreted in accordance with the laws of the State of Delaware, disregarding
any state’s choice-of-law principles requiring the application of a jurisdiction’s laws other than the State of Delaware.
10.13 Claw-back
Provisions. All Awards (including, without limitation, any proceeds, gains or other economic benefit actually or constructively received
by Participant upon any receipt or exercise of any Award or upon the receipt or sale of any Shares underlying the Award) shall be subject
to the provisions of any claw-back policy implemented by the Company, including, without limitation, any claw-back policy adopted to comply
with Applicable Laws.
10.14 Titles
and Headings. The titles and headings in the Plan are for convenience of reference only and, if any conflict, the Plan’s text,
rather than such titles or headings, will control.
10.15 Conformity
to Securities Laws. Participant acknowledges that the Plan is intended to conform to the extent necessary with Applicable Laws. Notwithstanding
anything herein to the contrary, the Plan and all Awards will be administered only in conformance with Applicable Laws. To the extent
Applicable Laws permit, the Plan and all Award Agreements will be deemed amended as necessary to conform to Applicable Laws.
10.16 Relationship
to Other Benefits. No payment under the Plan will be taken into account in determining any benefits under any pension, retirement,
savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary except as expressly provided
in writing in such other plan or an agreement thereunder.
ARTICLE XI.
Definitions
As used in the Plan, the following
words and phrases will have the following meanings:
11.1 “Administrator”
means the Board or a Committee to the extent that the Board’s powers or authority under the Plan have been delegated to such Committee.
11.2 “Applicable
Laws” means the requirements relating to the administration of equity incentive plans under U.S. federal and state securities,
tax and other applicable laws, rules and regulations, the applicable rules of any stock exchange or quotation system on which
the Common Stock is listed or quoted and the applicable laws and rules of any foreign country or other jurisdiction where Awards
are granted.
11.3 “Award”
means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock
Units, Dividend Equivalents, or Other Stock or Cash Based Awards.
11.4 “Award
Agreement” means a written agreement evidencing an Award, which may be electronic, that contains such terms and conditions
as the Administrator determines, consistent with and subject to the terms and conditions of the Plan.
11.5 “Board”
means the Board of Directors of the Company.
11.6 “Change
in Control” means and includes each of the following:
(a) A
transaction or series of transactions (other than an offering of Common Stock to the general public through a registration statement filed
with the Securities and Exchange Commission or a transaction or series of transactions that meets the requirements of clauses (i) and
(ii) of subsection (c) below) whereby any “person” or related “group” of “persons”
(as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its Subsidiaries,
an employee benefit plan maintained by the Company or any of its Subsidiaries or a “person” that, prior to such transaction,
directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than 50% of the
total combined voting power of the Company’s securities outstanding immediately after such acquisition; or
(b) During
any period of two consecutive years, individuals who, at the beginning of such period, constitute the Board together with any new Director(s) (other
than a Director designated by a person who shall have entered into an agreement with the Company to effect a transaction described in
subsections (a) or (c)) whose election by the Board or nomination for election by the Company’s stockholders was approved by
a vote of at least two-thirds of the Directors then still in office who either were Directors at the beginning of the two-year period
or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or
(c) The
consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries)
of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially
all of the Company’s assets in any single transaction or series of related transactions or (z) the acquisition of assets or
stock of another entity, in each case other than a transaction:
(i) which
results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining
outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls,
directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or otherwise
succeeds to the business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly,
at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction,
and
(ii) after
which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the Successor Entity;
provided, however, that no person or group shall be treated for purposes of this clause (ii) as beneficially owning
50% or more of the combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the
consummation of the transaction.
Notwithstanding the foregoing,
if a Change in Control constitutes a payment event with respect to any Award (or portion of any Award) that provides for the deferral
of compensation that is subject to Section 409A, to the extent required to avoid the imposition of additional taxes under Section 409A,
the transaction or event described in subsection (a), (b) or (c) with respect to such Award (or portion thereof) shall
only constitute a Change in Control for purposes of the payment timing of such Award if such transaction also constitutes a “change
in control event,” as defined in Treasury Regulation Section 1.409A-3(i)(5).
The Administrator shall have
full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change in Control has occurred
pursuant to the above definition, the date of the occurrence of such Change in Control and any incidental matters relating thereto; provided
that any exercise of authority in conjunction with a determination of whether a Change in Control is a “change in control event”
as defined in Treasury Regulation Section 1.409A-3(i)(5) shall be consistent with such regulation.
11.7 “Code”
means the Internal Revenue Code of 1986, as amended, and the regulations issued thereunder.
11.8 “Committee”
means one or more committees or subcommittees of the Board, which may include one or more Company directors or executive officers, to
the extent Applicable Laws permit. To the extent required to comply with the provisions of Rule 16b-3, it is intended that each member
of the Committee will be, at the time the Committee takes any action with respect to an Award that is subject to Rule 16b-3, a “non-employee
director” within the meaning of Rule 16b-3; however, a Committee member’s failure to qualify as a “non-employee
director” within the meaning of Rule 16b-3 will not invalidate any Award granted by the Committee that is otherwise validly
granted under the Plan.
11.9 “Common
Stock” means the common stock of the Company, par value of $0.0001 per share.
11.10 “Company”
means Infrared Cameras Holdings, Inc., a Delaware corporation, or any successor.
11.11 “Consultant”
means any consultant or advisor, engaged by the Company or any of its Subsidiaries to render services to such entity, who qualifies as
a consultant or advisor under the applicable rules of Form S-8 Registration Statement.
11.12 “Designated
Beneficiary” means the beneficiary or beneficiaries the Participant designates, in a manner the Administrator determines,
to receive amounts due or exercise the Participant’s rights if the Participant dies or becomes incapacitated. Without a Participant’s
effective designation, “Designated Beneficiary” will mean the Participant’s estate.
11.13 “Director”
means a Board member.
11.14 “Dividend
Equivalents” means a right granted to a Participant under the Plan to receive the equivalent value (in cash or Shares) of
dividends paid on Shares.
11.15 “Employee”
means any employee of the Company or its Subsidiaries.
11.16 “Equity
Restructuring” means, as determined by the Administrator, a non-reciprocal transaction between the Company and its stockholders,
such as a stock dividend, stock split, spin-off or recapitalization through a large, nonrecurring cash dividend, or other large, nonrecurring
cash dividend, that affects the Shares (or other securities of the Company) or the share price of Common Stock (or other securities of
the Company) and causes a change in the per share value of the Common Stock underlying outstanding Awards.
11.17 “Exchange
Act” means the Securities Exchange Act of 1934, as amended.
11.18 “Fair
Market Value” means, as of any date, the value of a Share of Common Stock determined as follows: (a) if the Common
Stock is listed on any established stock exchange, its Fair Market Value will be the closing sales price for such Common Stock as quoted
on such exchange for such date, or if no sale occurred on such date, the last day preceding such date during which a sale occurred, as
reported in The Wall Street Journal or another source the Administrator deems reliable; (b) if the Common Stock is not traded
on a stock exchange but is quoted on a national market or other quotation system, the closing sales price on such date, or if no sales
occurred on such date, then on the last date preceding such date during which a sale occurred, as reported in The Wall Street Journal
or another source the Administrator deems reliable; or (c) without an established market for the Common Stock, the Administrator
will determine the Fair Market Value in its discretion.
11.19 “Greater
Than 10% Stockholder” means an individual then owning (within the meaning of Section 424(d) of the Code) more
than 10% of the total combined voting power of all classes of stock of the Company or its parent or subsidiary corporation, as defined
in Section 424(e) and (f) of the Code, respectively.
11.20 “Incentive
Stock Option” means an Option intended to qualify as an “incentive stock option” as defined in Section 422
of the Code.
11.21 “Non-Qualified
Stock Option” means an Option, or portion thereof, not intended or not qualifying as an Incentive Stock Option.
11.22 “Option”
means an option to purchase Shares, which will either be an Incentive Stock Option or a Non-Qualified Stock Option.
11.23 “Other
Stock or Cash Based Awards” means cash awards, awards of Shares, and other awards valued wholly or partially by referring
to, or are otherwise based on, Shares or other property awarded to a Participant under Article VII.
11.24 “Overall
Share Limit” means (a) 3,040,486 Shares, plus (b) any Shares subject to Prior Plan Awards that become available
for issuance under the Plan on or following the Effective Date pursuant to Section 4.2 (which shall not exceed [●] Shares).
11.25 “Participant”
means a Service Provider who has been granted an Award.
11.26 “Performance
Criteria” mean the criteria (and adjustments) that the Administrator may select for an Award to establish performance goals
for a performance period, which may include the following: net earnings or losses (either before or after one or more of interest, taxes,
depreciation, amortization, and non-cash equity-based compensation expense); gross or net sales or revenue or sales or revenue growth;
net income (either before or after taxes) or adjusted net income; profits (including but not limited to gross profits, net profits, profit
growth, net operation profit or economic profit), profit return ratios or operating margin; budget or operating earnings (either before
or after taxes or before or after allocation of corporate overhead and bonus); cash flow (including operating cash flow and free cash
flow or cash flow return on capital); return on assets; return on capital or invested capital; cost of capital; return on stockholders’
equity; total stockholder return; return on sales; costs, reductions in costs and cost control measures; expenses; working capital; earnings
or loss per share; adjusted earnings or loss per share; price per share or dividends per share (or appreciation in or maintenance of such
price or dividends); regulatory achievements or compliance; implementation, completion or attainment of objectives relating to research,
development, regulatory, commercial, or strategic milestones or developments; market share; economic value or economic value added models;
division, group or corporate financial goals; customer satisfaction/growth; customer service; employee satisfaction; recruitment and maintenance
of personnel; human capital management (including diversity and inclusion); supervision of litigation and other legal matters; strategic
partnerships and transactions; financial ratios (including those measuring liquidity, activity, profitability or leverage); debt levels
or reductions; sales-related goals; financing and other capital raising transactions; cash on hand; acquisition activity; investment sourcing
activity; and marketing initiatives, any of which may be measured in absolute terms or as compared to any incremental increase or decrease.
Such performance goals also may be based solely by reference to the Company’s performance or the performance of a Subsidiary, division,
business segment or business unit of the Company or a Subsidiary, or based upon performance relative to performance of other companies
or upon comparisons of any of the indicators of performance relative to performance of other companies.
11.27 “Plan”
means this 2023 Incentive Award Plan.
11.28 “Prior
Plan” means the 2020 Equity Incentive Plan of Infrared Cameras Holdings, Inc., as amended.
11.29 “Prior
Plan Award” means an award outstanding under the Prior Plan as of the Effective Date.
11.30 “Restricted
Stock” means Shares awarded to a Participant under Article VI subject to certain vesting conditions and other restrictions.
11.31 “Restricted
Stock Unit” means an unfunded, unsecured right to receive, on the applicable settlement date, one Share or an amount in
cash or other consideration determined by the Administrator to be of equal value as of such settlement date awarded to a Participant under
Article VI subject to certain vesting conditions and other restrictions.
11.32 “Rule 16b-3”
means Rule 16b-3 promulgated under the Exchange Act.
11.33 “Section 409A”
means Section 409A of the Code and all regulations, guidance, compliance programs and other interpretative authority thereunder.
11.34 “Securities
Act” means the Securities Act of 1933, as amended.
11.35 “Service
Provider” means an Employee, Consultant or Director.
11.36 “Shares”
means shares of Common Stock.
11.37 “Stock
Appreciation Right” means a stock appreciation right granted under Article V.
11.38 “Subsidiary”
means any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities beginning with the Company if
each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities
or interests representing at least 50% of the total combined voting power of all classes of securities or interests in one of the other
entities in such chain.
11.39 “Substitute
Awards” means Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards
previously granted, or the right or obligation to make future awards, in each case by a company acquired by the Company or any Subsidiary
or with which the Company or any Subsidiary combines.
11.40 “Termination
of Service” means the date the Participant ceases to be a Service Provider.
* * * * *
Exhibit 10.15
INFRARED CAMERAS HOLDINGS, INC.
RESTRICTED
STOCK Unit Grant Notice
Infrared Cameras Holdings, Inc., a Delaware
corporation (the “Company”), has granted to the participant listed below (“Participant”)
the Restricted Stock Units (the “RSUs”) described in this Restricted Stock Unit Grant Notice (this “Grant
Notice”), subject to the terms and conditions of the Infrared Cameras Holdings, Inc. 2023 Incentive Award Plan (as
amended from time to time, the “Plan”), and the Restricted Stock Unit Agreement attached hereto as Exhibit A
(the “Agreement”). In addition, capitalized terms used but not otherwise defined in this Grant Notice or
the Agreement shall have the meanings set forth in the Plan, a copy of which Participant acknowledges having received.
Participant: |
[_______________] |
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Grant Date: |
[___________], 2023 |
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Number of RSUs: |
[____________] |
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Type of Shares: |
Common Stock |
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Vesting Schedule: |
One hundred percent (100%) of the RSUs will [vest on January 1, 2024 (the “Vesting Date”), subject
to Participant’s continued employment through the Vesting Date / be vested as of the Grant Date]. |
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Settlement Dates: |
Vested RSUs will be paid in Shares in 12 equal monthly installments, with the first installment being paid on December 20,
2024. |
By accepting (whether in
writing, electronically or otherwise) the RSUs, Participant agrees to be bound by the terms of this Grant Notice, the Plan and the Agreement.
Participant has reviewed the Plan, this Grant Notice and the Agreement in their entirety, has had an opportunity to obtain the advice
of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, this Grant Notice and the Agreement.
Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions
arising under the Plan, this Grant Notice or the Agreement.
Infrared Cameras HOLDINGS, INC.
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PARTICIPANT |
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By: |
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Name: |
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[________________________] |
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Title: |
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RESTRICTED
STOCK UNIT AGREEMENT
Capitalized terms not specifically
defined in this Restricted Stock Unit Agreement (this “Agreement”) have the meanings specified in the Grant
Notice or, if not defined in the Grant Notice, in the Plan.
Article I.
general
1.1 Award
of RSUs. The Company has granted the RSUs to Participant effective as of the Grant Date set
forth in the Grant Notice (the “Grant Date”). Each RSU represents the right to receive one share of Common
Stock (each, a “Share”) as set forth in this Agreement.
1.2 Incorporation
of Terms of Plan. The RSUs shall be subject to the terms and conditions set forth in this Agreement and the Plan, which is incorporated
herein by reference. Except as expressly set forth herein, in the event of any inconsistency between the Plan and this Agreement, the
terms of the Plan will control.
1.3 Unsecured
Promise. The RSUs will at all times prior to settlement represent an unsecured Company obligation payable only from the Company’s
general assets.
1.4 Defined
Terms. As used in this Agreement:
(a) “Award”
means this award of RSUs.
(b) “Disability”
means “permanent and total disability” as defined in Section 22(e)(3) of the Code.
(c) “Employment
Agreement” shall mean that certain Amended and Restated Employment Agreement by and between Participant and the Company,
dated as of [______], 2023.
(d) “Good
Reason” means the occurrence of any one or more of the following events without Participant’s prior written consent,
unless the Company fully corrects the circumstances constituting Good Reason (provided such circumstances are capable of correction)
as provided below: (i) a material diminution in Participant’s annual base salary, other than as part of an across-the-board
reduction applicable to the Company’s senior executives, and further excluding any voluntary reductions in his annual base salary;
or (ii) a material diminution in Participant’s title, authority or duties.
Notwithstanding the foregoing,
Participant will not be deemed to have resigned for Good Reason unless (1) Participant provides the Company with written notice
setting forth in reasonable detail the facts and circumstances claimed by Participant to constitute Good Reason within 45 days after
the date of the occurrence of any event that Participant knows or should reasonably have known to constitute Good Reason, (2) the
Company fails to cure such acts or omissions within 30 days following its receipt of such notice, and (3) the effective date of
Participant’s termination for Good Reason occurs no later than 60 days after the expiration of the Company’s cure period.
(e) “Qualifying
Termination” means a termination of Participant’s employment (i) by the Company without Cause, (ii) by
Participant for Good Reason, or (iii) due to Participant’s death or Disability.
(f) “Section 409A”
shall mean Code Section 409A and the Treasury Regulations promulgated thereunder.
Article II.
VESTING; SETTLEMENT
2.1 General
Vesting. The RSUs shall vest and become nonforfeitable, if at all, in accordance with the terms and conditions set forth in the Grant
Notice. In addition, if Participant experiences a Qualifying Termination, then any then-unvested RSUs shall become vested as of the date
of such Qualifying Termination, subject to Participant’s (or Participant’s estate’s) execution and non-revocation of
a release of claims in a form prescribed by the Company (a “Release”).
2.2 Settlement.
(a) The
RSUs will be paid in Shares, to the extent vested, within 30 days following the earlier to occur of: (i) the applicable Settlement
Date, or (ii) a Change in Control. Notwithstanding anything to the contrary contained herein, the exact payment date of any RSUs
shall be determined by the Company in its sole discretion (and Participant shall not have a right to designate the time of payment).
(b) Notwithstanding
the foregoing, the Company may delay any payment under this Agreement that the Company reasonably determines would violate applicable
law until the earliest date the Company reasonably determines the making of the payment will not cause such a violation (in accordance
with Treasury Regulation Section 1.409A-2(b)(7)(ii)); provided the Company reasonably believes the delay will not result in the
imposition of excise taxes under Section 409A.
2.3 Forfeiture
and Termination of RSUs. In the event of Participant’s Termination of employment prior to January 1, 2024 for any reason
other than a Qualifying Termination, or if Participant does not timely execute the Release or revokes the Release, in any case, then
all unvested RSUs will automatically be forfeited and terminated without consideration therefore, except as otherwise determined by the
Company or provided in a binding written agreement between Participant and the Company.
Article III.
TAXATION AND TAX WITHHOLDING
3.1 Representation.
Participant represents to the Company that Participant has reviewed with Participant’s own tax advisors the tax consequences of
this Award and the transactions contemplated by the Grant Notice and this Agreement. Participant is relying solely on such advisors and
not on any statements or representations of the Company or any of its agents.
3.2 Tax
Withholding.
(a) The
Company shall withhold, or cause to be withheld, Shares otherwise issuable under this Award in satisfaction of any applicable FICA withholding
tax obligation (which may arise prior to settlement of the RSUs). To the extent that any FICA tax withholding obligations arise in connection
with the RSUs prior to the date on which on which such RSUs should otherwise become payable to Participant, then the Company may accelerate
the payment of a number of RSUs sufficient to satisfy (but not in excess of) such tax withholding obligations and any tax withholding
obligations associated with such accelerated payment, and the Company or an affiliate may withhold such amounts in satisfaction of such
withholding obligations.
(b) By
accepting this Award, Participant understands and agrees that the Company, on Participant’s behalf, shall instruct the Company’s
broker, transfer agent or stock plan administrator, as applicable (the “Agent”), to (i) sell, at the then-applicable
market price, that number of Shares issued upon the settlement of the Award as necessary to satisfy any applicable statutory federal,
state and local withholding obligations (other than FICA withholding obligations) required with respect to any taxable event arising
in connection with the RSUs and all applicable fees and commissions due to, or required to be collected by, the Agent with respect thereto,
and (ii) to pay the cash proceeds of such sale(s) to the Company, with such sales to occur on or as soon as Agent determines
is reasonably practicable after the date on which the applicable tax withholding obligation arises (a “Sell to Cover”).
The Company shall then make a cash payment equal to the required tax withholding from the cash proceeds of such sale(s) directly
to the appropriate taxing authorities. The Company shall not be obligated to deliver any Shares to Participant or Participant’s
legal representative unless and until Participant or Participant’s legal representative shall have paid or otherwise satisfied
in full the amount of all federal, state and local taxes applicable to the taxable income of Participant resulting from the grant, vesting
or settlement of the RSUs.
(c) The
number of Shares which may be so withheld or surrendered pursuant to Section 3.2(a) above shall be limited to the number of
Shares which have a fair market value on the date of withholding no greater than the aggregate amount of such liabilities based on the
maximum individual statutory withholding rates in Participant’s applicable jurisdictions for federal, state, local and foreign
income tax and payroll tax purposes that are applicable to such taxable income.
(d) Participant
acknowledges that Participant is ultimately liable and responsible for all taxes owed in connection with the RSUs, regardless of any
action the Company or any Subsidiary takes with respect to any tax withholding obligations that arise in connection with the RSUs. Neither
the Company nor any Subsidiary makes any representation or undertaking regarding the treatment of any tax withholding in connection with
the awarding or payment of the RSUs or the subsequent sale of Shares. The Company and its Subsidiaries do not commit and are under no
obligation to structure the RSUs to reduce or eliminate Participant’s tax liability.
3.3 Section 409A.
(a) To
the extent applicable, this Agreement shall be interpreted in accordance with Section 409A, including without limitation any such
regulations or other guidance that may be issued after the effective date of this Agreement.
(b) Sections
10.6(b) and 10.6(c) of the Plan shall apply to the RSUs and this Agreement.
Article IV.
OTHER PROVISIONS
4.3 Adjustments.
Participant acknowledges that the RSUs and the Shares subject to the RSUs are subject to adjustment, modification and termination in
certain events as provided in this Agreement and Section 8 of the Plan.
4.4 Clawback.
The Award and the Shares issuable hereunder shall be subject to any clawback or recoupment policy in effect on the Grant Date or as may
be adopted or maintained by the Company to the extent required in order to comply with applicable law, including the Dodd-Frank Wall
Street Reform and Consumer Protection Act and any rules or regulations promulgated thereunder. The Company and Participant acknowledge
that neither this Section 4.4 nor Section 10.13 of the Plan are intended to limit any clawback and/or disgorgement of the Award
and/or the Shares issuable hereunder pursuant to Section 304 of the Sarbanes-Oxley Act of 2002.
4.5 Notices.
Any notice by Participant to the Company under this Agreement shall be in writing and shall be deemed duly given only upon receipt of
the notice by the Company at its principal executive offices addressed to its President. Any notice by the Company to Participant shall
be in writing or by electronic transmission and shall be deemed duly given if mailed or sent by electronic transmission to Participant’s
email address at the Company, or to such other address as Participant may later designate by notice given to the Company.
4.6 Titles.
Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
4.7 Conformity
to Securities Laws. Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent
necessary with all applicable laws and, to the extent applicable laws permit, will be deemed amended as necessary to conform to applicable
laws.
4.8 Successors
and Assigns. The Company may assign any of its rights under this Agreement to a single or multiple assignees, and this Agreement
will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in this Agreement
or the Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and
assigns of the parties hereto.
4.9 Limitations
Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject
to Section 16 of the Exchange Act, the Plan, the Grant Notice, this Agreement and the RSUs will be subject to any additional limitations
set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3)
that are requirements for the application of such exemptive rule. To the extent applicable laws permit, this Agreement will be deemed
amended as necessary to conform to such applicable exemptive rule.
4.10 Entire
Agreement. The Plan, the Grant Notice and this Agreement (including any exhibit hereto) constitute the entire agreement of the parties
and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter
hereof.
4.11 Agreement
Severable. In the event that any provision of the Grant Notice or this Agreement is held illegal or invalid, the provision will be
severable from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining provisions
of the Grant Notice or this Agreement.
4.12 Limitation
on Participant’s Rights.
(a) Participation
in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the
part of the Company as to amounts payable and may not be construed as creating a trust. Neither the Plan nor any underlying program,
in and of itself, has any assets. Participant will have only the rights of a general unsecured creditor of the Company with respect to
amounts credited and benefits payable, if any, with respect to the RSUs, and rights no greater than the right to receive cash or the
Shares as a general unsecured creditor with respect to the RSUs, as and when settled pursuant to the terms of this Agreement.
4.13 Not
a Contract of Employment. Nothing in the Plan, the Grant Notice or this Agreement confers upon Participant any right to continue
in the employ or service of the Company or any Subsidiary or interferes with or restricts in any way the rights of the Company and its
Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason
whatsoever, with or without cause, except to the extent expressly provided otherwise in a written agreement between the Company or a
Subsidiary and Participant.
4.14 Governing
Law. The validity, construction and effect of this Agreement shall be governed by the laws of the State of Delaware.
4.15 Counterparts.
The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to applicable law,
each of which will be deemed an original and all of which together will constitute one instrument.
* * * * *
Exhibit 10.16
INFRARED
CAMERAS HOLDINGS, INC.
2023 INCENTIVE AWARD PLAN
STOCK
OPTION GRANT NOTICE
Infrared Cameras Holdings,
Inc., a Delaware corporation (the “Company”) has granted to the participant listed below (“Participant”)
the stock option (the “Option”) described in this Stock Option Grant Notice (the “Grant Notice”),
subject to the terms and conditions of the Infrared Cameras Holdings, Inc. 2023 Incentive Award Plan (as amended from time to time, the
“Plan”) and the Stock Option Agreement attached hereto as Exhibit A (the “Agreement”),
both of which are incorporated into this Grant Notice by reference. Capitalized terms not specifically defined in this Grant Notice or
the Agreement have the meanings given to them in the Plan.
Participant: |
[To be specified] |
Grant Date: |
[To be specified] |
Exercise Price per Share: |
[To be specified] |
Shares Subject to the Option: |
[To be specified] |
Final Expiration Date: |
[To be specified] |
Vesting Commencement Date: |
[To be specified] |
Vesting Schedule: |
[To be specified] |
Type of Option |
[Incentive Stock Option]/[Non-Qualified Stock Option] |
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By accepting (whether in writing,
electronically or otherwise) the Option, Participant agrees to be bound by the terms of this Grant Notice, the Plan and the Agreement.
Participant has reviewed the Plan, this Grant Notice and the Agreement in their entirety, has had an opportunity to obtain the advice
of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, this Grant Notice and the Agreement.
Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions
arising under the Plan, this Grant Notice or the Agreement.
INFRARED CAMERAS HOLDINGS, INC. |
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PARTICIPANT |
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By: |
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Name: |
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Name: |
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Title: |
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STOCK OPTION AGREEMENT
Capitalized terms not specifically
defined in this Agreement have the meanings specified in the Grant Notice or, if not defined in the Grant Notice, in the Plan.
ARTICLE
I.
GENERAL
1.1 Grant of Option. The Company has granted to Participant the Option effective as of the grant date set forth in the Grant
Notice (the “Grant Date”).
1.2 Incorporation of Terms of Plan. The Option is subject to the terms and conditions set forth in this Agreement and the Plan,
which is incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan
will control.
ARTICLE
II.
PERIOD OF EXERCISABILITY
2.1 Commencement of Exercisability. The Option will vest and become exercisable according to the vesting schedule in the Grant
Notice (the “Vesting Schedule”) except that any fraction of a Share as to which the Option would be vested or
exercisable will be accumulated and will vest and become exercisable only when a whole Share has accumulated. Notwithstanding anything
in the Grant Notice, the Plan or this Agreement to the contrary, unless the Administrator otherwise determines, the Option will immediately
expire and be forfeited as to any portion that is not vested and exercisable as of Participant’s Termination of Service for any
reason (after taking into consideration any accelerated vesting and exercisability which may occur in connection with such Termination
of Service).
2.2 Duration of Exercisability. The Vesting Schedule is cumulative. Any portion of the Option which vests and becomes exercisable
will remain vested and exercisable until the Option expires. The Option will be forfeited immediately upon its expiration.
2.3 Expiration of Option. The Option may not be exercised to any extent by anyone after, and will expire on, the first of the
following to occur:
(a) The final expiration date in the Grant Notice; provided, however, such final expiration date may be extended pursuant
to Section 5.3 of the Plan;
(b) Except as the Administrator may otherwise approve, the expiration of three months from the date of Participant’s Termination
of Service, unless Participant’s Termination of Service is for Cause (as defined below) or by reason of Participant’s death
or Disability (as defined below);
(c) Except as the Administrator may otherwise approve, the expiration of one year from the date of Participant’s Termination
of Service by reason of Participant’s death or Disability; and
(d) Except as the Administrator may otherwise approve, Participant’s Termination of Service for Cause.
2.4 Certain Definitions.
(a) “Cause” means, except as may otherwise be provided in Participant’s employment or service agreement
to the extent such agreement is in effect at the relevant time, any of the following events:
(i)
Participant’s willful failure substantially to perform his or her duties and responsibilities to the Company (other than
any such failure resulting from Participant’s incapacity due to physical or mental illness) or carry out or comply with a lawful
and reasonable directive of the Company, in each case, after a written demand for performance is delivered to Participant by the Administrator,
which demand specifically identifies the manner in which the Administrator believes that Participant has not performed his or her duties;
(ii)
Participant’s deliberate violation of a Company policy;
(iii)
Participant’s commission of, including any entry by Participant of a guilty or no contest plea to, any felony under any state,
federal or foreign law or any crime involving moral turpitude, or Participant’s commission of unlawful harassment or discrimination;
(iv)
Participant’s commission of any act of fraud, embezzlement, dishonesty or any other willful misconduct that has caused or
is reasonably expected to result in material reputational, economic or financial injury to the Company;
(v)
Participant’s unlawful use (including being under the influence) or possession of illegal drugs on the Company’s (or
any affiliate’s) premises or while performing Participant’s duties and responsibilities;
(vi)
Participant’s willful misconduct or gross negligence with respect to any material aspect of the Company’s business
or a material breach by Participant of his or her fiduciary duty to the Company;
(vii)
unauthorized use or disclosure by Participant of any proprietary information or trade secrets of the Company or any other party
to whom Participant owes an obligation of nondisclosure as a result of his or her relationship with the Company; or
(viii)
Participant’s willful breach of any of his or her obligations under any written agreement or covenant with the Company.
(b) “Disability” shall mean a permanent and total disability under Section 22(e)(3) of the Code.
ARTICLE
III.
EXERCISE OF OPTION
3.1 Person Eligible to Exercise. During Participant’s lifetime, only Participant may exercise the Option. After Participant’s
death, any exercisable portion of the Option may, prior to the time the Option expires, be exercised by Participant’s Designated
Beneficiary as provided in the Plan.
3.2 Partial Exercise. Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised,
in whole or in part, according to the procedures in the Plan at any time prior to the time the Option or portion thereof expires, except
that the Option may only be exercised for whole Shares.
3.3 Tax Withholding; Exercise Price
(a) Subject to Section 3.3(b) and 3.3(c), payment of the exercise price and withholding tax obligations with respect to the
Option may be by any of the following, or a combination thereof, as determined by [the Company in its sole discretion / Participant or
the Administrator]1:
(i)
Cash or check;
(ii)
In whole or in part by delivery of Shares, including Shares delivered by attestation and Shares retained from the Option creating
the tax obligation, valued at their Fair Market Value on the date of delivery; or
(iii)
In whole or in part by the Company withholding of Shares otherwise issuable upon exercise of this Option.
(b)
By accepting this Award, Participant understands and agrees that the Company, on Participant’s behalf, shall instruct the
Company’s broker, transfer agent or stock plan administrator, as applicable (the “Agent”), to (i) sell,
at the then-applicable market price, that number of Shares issued upon the exercise of the Option as necessary to satisfy any applicable
statutory federal, state and local withholding obligations required with respect to any taxable event arising in connection with the Option
and all applicable fees and commissions due to, or required to be collected by, the Agent with respect thereto, and (ii) to pay the cash
proceeds of such sale(s) to the Company, with such sales to occur on or as soon as Agent determines is reasonably practicable after the
date on which the applicable tax withholding obligation arises (a “Sell to Cover”). The Company shall then make
a cash payment equal to the required tax withholding from the cash proceeds of such sale(s) directly to the appropriate taxing authorities.
The Company shall not be obligated to deliver any Shares to Participant or Participant’s legal representative unless and until Participant
or Participant’s legal representative shall have paid or otherwise satisfied in full the amount of all federal, state and local
taxes applicable to the taxable income of Participant resulting from exercise of the Options.
(b) Subject to Section 9.5 of the Plan, the applicable tax withholding obligation will be determined based on Participant’s
Applicable Withholding Rate. Participant’s “Applicable Withholding Rate” shall mean (i) if Participant
is subject to Section 16 of the Exchange Act, the greater of (A) the minimum applicable statutory tax withholding rate or (B) with Participant’s
consent, the maximum individual tax withholding rate permitted under the rules of the applicable taxing authority for tax withholding
attributable to the underlying transaction, or (ii) if Participant is not subject to Section 16 of the Exchange Act, the minimum applicable
statutory tax withholding rate or such other higher rate approved by the Company; provided, however, that (x) in no event
shall Participant’s Applicable Withholding Rate exceed the maximum individual statutory tax rate in the applicable jurisdiction
at the time of such withholding (or such other rate as may be required to avoid the liability classification of the applicable award under
generally accepted accounting principles in the United States of America); and (y) the number of Shares tendered or withheld, if applicable,
shall be rounded up to the nearest whole Share sufficient to cover the applicable tax withholding obligation, to the extent rounding up
to the nearest whole Share does not result in the liability classification of the Option under generally accepted accounting principles.
(c) Participant acknowledges that Participant is ultimately liable and responsible for the exercise price and all taxes owed
in connection with the Option (and, with respect to taxes, regardless of any action the Company or any Subsidiary takes with respect to
any tax withholding obligations that arise in connection with the Option). Neither the Company nor any Subsidiary makes any representation
or undertaking regarding the treatment of any tax withholding in connection with the awarding, vesting or exercise of the Option or the
subsequent sale of Shares. The Company and the Subsidiaries do not commit and are under no obligation to structure the Option to reduce
or eliminate Participant’s tax liability.
1
NTD: “The Administrator” for Section 16 individuals. “The Company”
for non-Section 16 individuals.
ARTICLE
IV.
OTHER PROVISIONS
4.1 Adjustments. Participant acknowledges that the Option is subject to adjustment, modification and termination in certain
events as provided in this Agreement and the Plan.
4.2 Clawback. Notwithstanding Section 10.13 of the Plan, the Option and the Shares issuable hereunder shall be subject to any
Company clawback or recoupment policy in effect on the Grant Date or as may be adopted or maintained by the Company following the Grant
Date, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations promulgated thereunder.
4.3 Notices. Any notice to be given under the terms of this Agreement to the Company must be in writing and addressed to the
Company in care of the Company’s General Counsel at the Company’s principal office or the General Counsel ’s then-current
email address or facsimile number. Any notice to be given under the terms of this Agreement to Participant must be in writing and addressed
to Participant (or, if Participant is then deceased, to the Designated Beneficiary) at Participant’s last known mailing address,
email address or facsimile number in the Company’s personnel files. By a notice given pursuant to this Section, either party may
designate a different address for notices to be given to that party. Any notice will be deemed duly given when actually received, when
sent by email, when sent by certified mail (return receipt requested) and deposited with postage prepaid in a post office or branch post
office regularly maintained by the United States Postal Service, when delivered by a nationally recognized express shipping company or
upon receipt of a facsimile transmission confirmation.
4.4 Titles. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction
of this Agreement.
4.5 Conformity to Securities Laws. Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended
to conform to the extent necessary with all Applicable Laws and, to the extent Applicable Laws permit, will be deemed amended as necessary
to conform to Applicable Laws.
4.6 Successors and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and
this Agreement will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth
in this Agreement or the Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives,
successors and assigns of the parties hereto.
4.7 Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan or this Agreement, if Participant
is subject to Section 16 of the Exchange Act, the Plan, the Grant Notice, this Agreement and the Option will be subject to any additional
limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3)
that are requirements for the application of such exemptive rule. To the extent Applicable Laws permit, this Agreement will be deemed
amended as necessary to conform to such applicable exemptive rule.
4.8 Entire Agreement; Amendment. The Plan, the Grant Notice and this Agreement (including any exhibit hereto) constitute
the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant
with respect to the subject matter hereof. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise
modified, suspended or terminated at any time or from time to time by the Administrator or the Board; provided, however, that except as
may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall materially and adversely
affect the Option without the prior written consent of Participant.
4.9 Agreement Severable. In the event that any provision of the Grant Notice or this Agreement is held illegal or invalid, the
provision will be severable from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining
provisions of the Grant Notice or this Agreement.
4.10 Limitation on Participant’s Rights. Participation in the Plan confers no rights or interests other than as herein
provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and may not be construed
as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. Participant will have only the rights
of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the Option,
and rights no greater than the right to receive the Shares as a general unsecured creditor with respect to the Option, as and when exercised
pursuant to the terms hereof.
4.11 Not a Contract of Employment. Nothing in the Plan, the Grant Notice or this Agreement confers upon Participant any right
to continue in the employ or service of the Company or any Subsidiary or interferes with or restricts in any way the rights of the Company
and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for
any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between the Company
or a Subsidiary and Participant.
4.12 Counterparts. The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature,
subject to Applicable Law, each of which will be deemed an original and all of which together will constitute one instrument.
4.13 Incentive Stock Options. If the Option is designated as an Incentive Stock Option:
(a) Participant acknowledges that to the extent the aggregate fair market value of shares (determined as of the time the option
with respect to the shares is granted) with respect to which stock options intended to qualify as “incentive stock options”
under Section 422 of the Code, including the Option, are exercisable for the first time by Participant during any calendar year exceeds
$100,000 or if for any other reason such stock options do not qualify or cease to qualify for treatment as “incentive stock options”
under Section 422 of the Code, such stock options (including the Option) will be treated as non-qualified stock options. Participant
further acknowledges that the rule set forth in the preceding sentence will be applied by taking the Option and other stock options into
account in the order in which they were granted, as determined under Section 422(d) of the Code. Participant also acknowledges that
if the Option is exercised more than three months after Participant’s Termination of Service, other than by reason of death or Disability,
the Option will be taxed as a Non-Qualified Stock Option.
(b) Participant will give prompt written notice to the Company of any disposition or other transfer of any Shares acquired under
this Agreement if such disposition or other transfer is made (i) within two years from the Grant Date or (ii) within one year after the
transfer of such Shares to Participant. Such notice will specify the date of such disposition or other transfer and the amount realized,
in cash, other property, assumption of indebtedness or other consideration, by Participant in such disposition or other transfer.
* * * * *
Exhibit 10.17
INFRARED CAMERAS HOLDINGS, INC.
2023 INCENTIVE AWARD PLAN
RESTRICTED STOCK
Unit Grant Notice
Infrared Cameras Holdings,
Inc., a Delaware corporation (the “Company”), has granted to the participant listed below (“Participant”)
the Restricted Stock Units (the “RSUs”) described in this Restricted Stock Unit Grant Notice (this “Grant
Notice”), subject to the terms and conditions of the Infrared Cameras Holdings, Inc. 2023 Incentive Award Plan (as amended
from time to time, the “Plan”) and the Restricted Stock Unit Agreement attached hereto as Exhibit A (the
“Agreement”), both of which are incorporated into this Grant Notice by reference. Capitalized terms not specifically
defined in this Grant Notice or the Agreement have the meanings given to them in the Plan.
Participant: |
[To be specified] |
Grant Date: |
[To be specified] |
Number of RSUs: |
[To be specified] |
Vesting Commencement Date: |
[To be specified] |
Vesting Schedule: |
[To be specified] |
|
|
By accepting (whether in writing,
electronically or otherwise) the RSUs, Participant agrees to be bound by the terms of this Grant Notice, the Plan and the Agreement. Participant
has reviewed the Plan, this Grant Notice and the Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior
to executing this Grant Notice and fully understands all provisions of the Plan, this Grant Notice and the Agreement. Participant hereby
agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under
the Plan, this Grant Notice or the Agreement.
INFRARED CAMERAS HOLDINGS, INC. |
|
PARTICIPANT |
|
|
|
|
|
|
By: |
|
|
|
Name: |
|
|
Name: |
|
Title: |
|
|
|
|
RESTRICTED STOCK
UNIT AGREEMENT
Capitalized terms not specifically
defined in this Restricted Stock Unit Agreement (this “Agreement”) have the meanings specified in the Grant
Notice or, if not defined in the Grant Notice, in the Plan.
Article
I.
general
1.1 Award of RSUs(a). The Company has granted the RSUs to Participant effective as of the Grant Date set forth in the Grant
Notice (the “Grant Date”). Each RSU represents the right to receive one Share as set forth in this Agreement.
Participant will have no right to the distribution of any Shares until the time (if ever) the RSUs have vested.
1.2 Incorporation of Terms of Plan. The RSUs are subject to the terms and conditions set forth in this Agreement and the Plan,
which is incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan
will control.
1.3 Unsecured Promise. The RSUs will at all times prior to settlement represent an unsecured Company obligation payable only
from the Company’s general assets.
Article
II.
VESTING; forfeiture AND SETTLEMENT
2.1 Vesting; Forfeiture. The RSUs will vest according to
the vesting schedule in the Grant Notice except that any fraction of an RSU that would otherwise be vested will be accumulated and will
vest only when a whole RSU has accumulated. In the event of Participant’s Termination of Service for any reason, all unvested RSUs
will immediately and automatically be cancelled and forfeited, except as otherwise determined by the Administrator or provided in a binding
written agreement between Participant and the Company (after taking into consideration any accelerated vesting which may occur in connection
with such Termination of Service).
2.2 Settlement.
(a) The RSUs will, to the extent vested, be paid in Shares as soon as administratively practicable after the vesting of the applicable
RSU, but in no event later than March 15 of the year following the year in which the RSU’s vesting date occurs.
(b) Notwithstanding the foregoing, the Company may delay any payment under this Agreement that the Company reasonably determines would
violate Applicable Law until the earliest date the Company reasonably determines the making of the payment will not cause such a violation
(in accordance with Treasury Regulation Section 1.409A-2(b)(7)(ii)); provided the Company reasonably believes the delay will not result
in the imposition of excise taxes under Section 409A.
Article
III.
TAXATION AND TAX WITHHOLDING
3.1 Representation. Participant represents to the Company that Participant has reviewed with Participant’s own tax advisors
the tax consequences of this award of RSUs (the “Award”) and the transactions contemplated by the Grant Notice
and this Agreement. Participant is relying solely on such advisors and not on any statements or representations of the Company or any
of its agents.
3.2 Tax Withholding.
(a) Subject to Section 3.2(b), payment of the withholding tax obligations with respect to the Award may be by any of the following,
or a combination thereof, as determined by [the Company in its sole discretion / the Administrator]1:
(i) Cash or check;
(ii) In whole or in part by delivery of Shares, including Shares delivered by attestation and Shares retained from the Award creating
the tax obligation, valued at their Fair Market Value on the date of delivery; or
(iii)
In whole or in part by the Company withholding of Shares otherwise vesting or issuable under this Award in satisfaction of any
applicable withholding tax obligations.
(b) By accepting this Award, Participant understands and agrees that the Company, on Participant’s behalf, shall instruct the
Company’s broker, transfer agent or stock plan administrator, as applicable (the “Agent”), to (i) sell,
at the then-applicable market price, that number of Shares issued upon the settlement of the Award as necessary to satisfy any applicable
statutory federal, state and local withholding obligations required with respect to any taxable event arising in connection with the RSUs
and all applicable fees and commissions due to, or required to be collected by, the Agent with respect thereto, and (ii) to pay the cash
proceeds of such sale(s) to the Company, with such sales to occur on or as soon as Agent determines is reasonably practicable after the
date on which the applicable tax withholding obligation arises (a “Sell to Cover”). The Company shall then make
a cash payment equal to the required tax withholding from the cash proceeds of such sale(s) directly to the appropriate taxing authorities.
The Company shall not be obligated to deliver any Shares to Participant or Participant’s legal representative unless and until Participant
or Participant’s legal representative shall have paid or otherwise satisfied in full the amount of all federal, state and local
taxes applicable to the taxable income of Participant resulting from the grant, vesting or settlement of the RSUs.
(b) Subject to Section 9.5 of the Plan, the applicable tax withholding obligation will be determined based on Participant’s Applicable
Withholding Rate. Participant’s “Applicable Withholding Rate” shall mean (i) if Participant is subject
to Section 16 of the Exchange Act, the greater of (A) the minimum applicable statutory tax withholding rate or (B) with Participant’s
consent, the maximum individual tax withholding rate permitted under the rules of the applicable taxing authority for tax withholding
attributable to the underlying transaction, or (ii) if Participant is not subject to Section 16 of the Exchange Act, the minimum applicable
statutory tax withholding rate or such other higher rate approved by the Company; provided, however, that (x) in no event
shall Participant’s Applicable Withholding Rate exceed the maximum individual statutory tax rate in the applicable jurisdiction
at the time of such withholding (or such other rate as may be required to avoid the liability classification of the applicable award under
generally accepted accounting principles in the United States of America); and (y) the number of Shares tendered or withheld, if applicable,
shall be rounded up to the nearest whole Share sufficient to cover the applicable tax withholding obligation, to the extent rounding up
to the nearest whole Share does not result in the liability classification of the RSUs under generally accepted accounting principles.
1
NTD: “The Administrator” for Section 16 individuals. “The Company” for non-Section 16 individuals.
(c) Participant acknowledges that Participant is ultimately liable and responsible for all taxes owed in connection with the RSUs,
regardless of any action the Company or any Subsidiary takes with respect to any tax withholding obligations that arise in connection
with the RSUs. Neither the Company nor any Subsidiary makes any representation or undertaking regarding the treatment of any tax withholding
in connection with the awarding, vesting or payment of the RSUs or the subsequent sale of Shares. The Company and its Subsidiaries do
not commit and are under no obligation to structure the RSUs to reduce or eliminate Participant’s tax liability.
Article
IV.
other provisions
4.1 Adjustments. Participant acknowledges that the RSUs and the Shares subject to the RSUs are subject to adjustment, modification
and/or termination in certain events as provided in this Agreement and the Plan.
4.2 Clawback. Notwithstanding Section 10.13 of the Plan, the Award and the Shares issuable hereunder shall be subject to any
Company clawback or recoupment policy in effect on the Grant Date or as may be adopted or maintained by the Company following the Grant
Date, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations promulgated thereunder.
4.3 Notices. Any notice to be given under the terms of this Agreement to the Company must be in writing and addressed to the
Company in care of the Company’s General Counsel at the Company’s principal office or the General Counsel’s then-current
email address or facsimile number. Any notice to be given under the terms of this Agreement to Participant must be in writing and addressed
to Participant (or, if Participant is then deceased, to the Designated Beneficiary) at Participant’s last known mailing address,
email address or facsimile number in the Company’s personnel files. By a notice given pursuant to this Section, either party may
designate a different address for notices to be given to that party. Any notice will be deemed duly given when actually received, when
sent by email, when sent by certified mail (return receipt requested) and deposited with postage prepaid in a post office or branch post
office regularly maintained by the United States Postal Service, when delivered by a nationally recognized express shipping company or
upon receipt of a facsimile transmission confirmation.
4.4 Titles. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction
of this Agreement.
4.5 Conformity to Securities Laws. Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended
to conform to the extent necessary with all Applicable Laws and, to the extent Applicable Laws permit, will be deemed amended as necessary
to conform to Applicable Laws.
4.6 Successors and Assigns. The Company may assign any of its rights under this Agreement to a single or multiple assignees,
and this Agreement will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set
forth in this Agreement or the Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives,
successors and assigns of the parties hereto.
4.7 Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan or this Agreement, if Participant
is subject to Section 16 of the Exchange Act, the Plan, the Grant Notice, this Agreement and the RSUs will be subject to any additional
limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3) that
are requirements for the application of such exemptive rule. To the extent Applicable Laws permit, this Agreement will be deemed amended
as necessary to conform to such applicable exemptive rule.
4.8 Entire Agreement; Amendment. The Plan, the Grant Notice and this Agreement (including any exhibit hereto) constitute the
entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with
respect to the subject matter hereof. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise
modified, suspended or terminated at any time or from time to time by the Administrator or the Board; provided, however, that except as
may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall materially and adversely
affect the RSUs without the prior written consent of Participant.
4.9 Agreement Severable. In the event that any provision of the Grant Notice or this Agreement is held illegal or invalid, the
provision will be severable from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining
provisions of the Grant Notice or this Agreement.
4.10 Limitation on Participant’s Rights. Participation in the Plan confers no rights or interests other than as herein
provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and may not be construed
as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. Participant will have only the rights
of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the RSUs,
and rights no greater than the right to receive cash or the Shares as a general unsecured creditor with respect to the RSUs, as and when
settled pursuant to the terms of this Agreement.
4.11 Not a Contract of Employment. Nothing in the Plan, the Grant Notice or this Agreement confers upon Participant any right
to continue in the employ or service of the Company or any Subsidiary or interferes with or restricts in any way the rights of the Company
and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for
any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in a written agreement between the Company
or a Subsidiary and Participant.
4.12 Counterparts. The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature,
subject to Applicable Law, each of which will be deemed an original and all of which together will constitute one instrument.
* * * * *
Exhibit 16.1
December 21, 2023
Securities and Exchange Commission
100 F Street, N.E.
Washington, DC 20549
Commissioners:
We have read the statements made by Infrared Cameras
Holdings, Inc. (formerly SportsMap Tech Acquisition Corp.) under Item 4.01 of its Form 8-K dated December 21, 2023. We agree with the
statements concerning our Firm in such Form 8-K; we are not in a position to agree or disagree with other statements of Infrared Cameras
Holdings, Inc. (formerly SportsMap Tech Acquisition Corp.) contained therein.
Very truly yours,
/s/ Marcum llp
Marcum llp
Exhibit 21.1
LIST OF SUBSIDIARIES
Name of Subsidiary | |
Jurisdiction of Incorporation or Organization |
MSAI Operating, Inc. | |
Delaware |
Infrared Cameras, Inc. | |
Texas |
Digatherm LLC | |
Florida |
Infrared Inspections LLC | |
Texas |
v3.23.4
Cover
|
Dec. 19, 2023 |
Document Information [Line Items] |
|
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Dec. 19, 2023
|
Current Fiscal Year End Date |
--12-31
|
Entity File Number |
001-40916
|
Entity Registrant Name |
Infrared Cameras Holdings, Inc.
|
Entity Central Index Key |
0001863990
|
Entity Tax Identification Number |
86-3962954
|
Entity Incorporation, State or Country Code |
DE
|
Entity Address, Address Line One |
2105 West Cardinal Drive
|
Entity Address, City or Town |
Beaumont
|
Entity Address, State or Province |
TX
|
Entity Address, Postal Zip Code |
77705
|
City Area Code |
866
|
Local Phone Number |
861-0788
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Entity Emerging Growth Company |
true
|
Elected Not To Use the Extended Transition Period |
false
|
Common stock, $0.0001 par value per share |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Common stock, $0.0001 par value per share
|
Trading Symbol |
MSAI
|
Security Exchange Name |
NASDAQ
|
Warrants to purchase common stock |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Warrants to purchase common stock
|
Trading Symbol |
MSAIW
|
Security Exchange Name |
NASDAQ
|
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