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Intest Corp – ‘10-Q’ for 6/30/19 – ‘EX-10.4’

On:  Tuesday, 8/13/19, at 12:36pm ET   ·   For:  6/30/19   ·   Accession #:  1437749-19-16515   ·   File #:  1-36117

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 8/13/19  Intest Corp                       10-Q        6/30/19   77:5.6M                                   RDG Filings/FA

Quarterly Report   —   Form 10-Q   —   Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                    HTML    593K 
 2: EX-10.2     Material Contract                                   HTML     36K 
 3: EX-10.3     Material Contract                                   HTML     34K 
 4: EX-10.4     Material Contract                                   HTML     47K 
 5: EX-10.5     Material Contract                                   HTML     43K 
 6: EX-31.1     Certification -- §302 - SOA'02                      HTML     25K 
 7: EX-31.2     Certification -- §302 - SOA'02                      HTML     25K 
 8: EX-32.1     Certification -- §906 - SOA'02                      HTML     22K 
 9: EX-32.2     Certification -- §906 - SOA'02                      HTML     22K 
16: R1          Document And Entity Information                     HTML     52K 
17: R2          Consolidated Balance Sheets (Current Period         HTML    145K 
                Unaudited)                                                       
18: R3          Consolidated Balance Sheets (Current Period         HTML     43K 
                Unaudited) (Parentheticals)                                      
19: R4          Consolidated Statements of Operations (Unaudited)   HTML     76K 
20: R5          Consolidated Statements of Comprehensive Earnings   HTML     33K 
                (Loss) (Unaudited)                                               
21: R6          Consolidated Statements of Stockholders' Equity     HTML     71K 
                (Unaudited)                                                      
22: R7          Consolidated Statements of Cash Flows (Unaudited)   HTML    114K 
23: R8          Note 1 - Nature of Operations                       HTML     32K 
24: R9          Note 2 - Summary of Significant Accounting          HTML    121K 
                Policies                                                         
25: R10         Note 3 - Goodwill and Intangible Assets             HTML     86K 
26: R11         Note 4 - Revenue From Contracts With Customers      HTML     74K 
27: R12         Note 5 - Major Customers                            HTML     26K 
28: R13         Note 6 - Inventories                                HTML     42K 
29: R14         Note 7 - Leases                                     HTML     56K 
30: R15         Note 8 - Debt                                       HTML     40K 
31: R16         Note 9 - Stock-based Compensation                   HTML     78K 
32: R17         Note 10 - Employee Benefit Plans                    HTML     29K 
33: R18         Note 11 - Segment Information                       HTML    102K 
34: R19         Note 12 - Subsequent Events                         HTML     28K 
35: R20         Significant Accounting Policies (Policies)          HTML    133K 
36: R21         Note 2 - Summary of Significant Accounting          HTML     51K 
                Policies (Tables)                                                
37: R22         Note 3 - Goodwill and Intangible Assets (Tables)    HTML     86K 
38: R23         Note 4 - Revenue From Contracts With Customers      HTML     71K 
                (Tables)                                                         
39: R24         Note 6 - Inventories (Tables)                       HTML     43K 
40: R25         Note 7 - Leases (Tables)                            HTML     52K 
41: R26         Note 8 - Debt (Tables)                              HTML     36K 
42: R27         Note 9 - Stock-based Compensation (Tables)          HTML     75K 
43: R28         Note 11 - Segment Information (Tables)              HTML    107K 
44: R29         Note 1 - Nature of Operations (Details Textual)     HTML     24K 
45: R30         Note 2 - Summary of Significant Accounting          HTML     33K 
                Policies (Details Textual)                                       
46: R31         Note 2 - Summary of Significant Accounting          HTML     34K 
                Policies - Weighted Average Common Shares                        
                (Details)                                                        
47: R32         Note 3 - Goodwill and Intangible Assets (Details    HTML     27K 
                Textual)                                                         
48: R33         Note 3 - Goodwill and Intangible Assets - Changes   HTML     27K 
                in the Amount of the Carrying Value of Intangible                
                Assets (Details)                                                 
49: R34         Note 3 - Goodwill and Intangible Assets -           HTML     63K 
                Intangible Assets (Details)                                      
50: R35         Note 3 - Goodwill and Intangible Assets - Future    HTML     32K 
                Amortization Expense (Details)                                   
51: R36         Note 4 - Revenue From Contracts With Customers      HTML     22K 
                (Details Textual)                                                
52: R37         Note 4 - Revenue From Contracts With Customers -    HTML     43K 
                Disaggregation of Revenues (Details)                             
53: R38         Note 5 - Major Customers (Details Textual)          HTML     28K 
54: R39         Note 6 - Inventories - Inventories Held (Details)   HTML     35K 
55: R40         Note 6 - Inventories - Charges Incurred for Excess  HTML     23K 
                and Obsolete Inventory (Details)                                 
56: R41         Note 7 - Leases (Details Textual)                   HTML     42K 
57: R42         Note 7 - Leases - Lease Costs (Details)             HTML     36K 
58: R43         Note 7 - Leases - Supplemental Cash Flow            HTML     27K 
                Information (Details)                                            
59: R44         Note 7 - Leases - Maturities of Lease Liabilities   HTML     40K 
                (Details)                                                        
60: R45         Note 8 - Debt (Details Textual)                     HTML     25K 
61: R46         Note 8 - Debt - Outstanding Letters of Credit       HTML     36K 
                (Details)                                                        
62: R47         Note 9 - Stock-based Compensation (Details          HTML     66K 
                Textual)                                                         
63: R48         Note 9 - Stock-based Compensation - Allocation of   HTML     33K 
                Share-based Compensation Expense (Details)                       
64: R49         Note 9 - Stock-based Compensation - Unvested Stock  HTML     44K 
                Activity (Details)                                               
65: R50         Note 9 - Stock-based Compensation - Stock Options   HTML     33K 
                Valuation Assumptions (Details)                                  
66: R51         Note 9 - Stock-based Compensation - Stock Option    HTML     40K 
                Activity (Details)                                               
67: R52         Note 9 - Stock-based Compensation - Stock Option    HTML     23K 
                Activity (Details) (Parentheticals)                              
68: R53         Note 10 - Employee Benefit Plans (Details Textual)  HTML     37K 
69: R54         Note 11 - Segment Information (Details Textual)     HTML     22K 
70: R55         Note 11 - Segment Information - Segment             HTML     42K 
                Information (Details)                                            
71: R56         Note 11 - Segment Information - Identifiable        HTML     31K 
                Assets (Details)                                                 
72: R57         Note 11 - Segment Information - Net Revenue From    HTML     27K 
                Unaffiliated Customers (Details)                                 
73: R58         Note 11 - Segment Information - Long-lived Assets   HTML     30K 
                by Geographical Area (Details)                                   
74: R59         Note 12 - Subsequent Events (Details Textual)       HTML     34K 
76: XML         IDEA XML File -- Filing Summary                      XML    134K 
75: EXCEL       IDEA Workbook of Financial Reports                  XLSX     68K 
10: EX-101.INS  XBRL Instance -- intt-20190630                       XML   1.67M 
12: EX-101.CAL  XBRL Calculations -- intt-20190630_cal               XML    130K 
13: EX-101.DEF  XBRL Definitions -- intt-20190630_def                XML    981K 
14: EX-101.LAB  XBRL Labels -- intt-20190630_lab                     XML    812K 
15: EX-101.PRE  XBRL Presentations -- intt-20190630_pre              XML   1.01M 
11: EX-101.SCH  XBRL Schema -- intt-20190630                         XSD    160K 
77: ZIP         XBRL Zipped Folder -- 0001437749-19-016515-xbrl      Zip    135K 


‘EX-10.4’   —   Material Contract


This Exhibit is an HTML Document rendered as filed.  [ Alternative Formats ]



 C:  <>  <> 

EXHIBIT 10.4

 

inTEST Corporation
____________________

 

Incentive Stock Option Agreement
_____________________

 

inTEST Corporation, a Delaware corporation (“inTEST” or the “Company”), hereby grants to _________________ (the “Optionee”) an option to purchase a total of __________________ (_________) shares of the Common Stock (the “Option Shares”) of inTEST, at the price and on the terms and conditions set forth herein and in all respects subject to the terms, conditions and provisions of the inTEST Corporation Second Amended and Restated 2014 Stock Plan (the “Plan”) applicable to incentive options, which terms, conditions and provisions are hereby incorporated herein by reference. Unless the context herein otherwise requires, the capitalized terms not defined herein shall have the meaning provided in the Plan.

 

1.

Nature of Option

   

 

This Option is intended to be an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

   

2.

Term of Option

   

 

This Option is granted as of ______________ (the “Date of Grant”) and it may not be exercised later than the close of business on ________________ (the “Expiration Date”); however, this Option is subject to earlier termination as set forth in this Option Agreement and in the Plan.

   

3.

Option Exercise Price

   

 

The Option exercise price (“Option Price”) is ___________________________ ($____) per Option Share.

   

4.

Exercise of Option

   

 

This Option is exercisable during its term only in accordance with the terms, conditions and provisions of the Plan and this Option Agreement as follows:

   

 

(i)

Right to Exercise. This Option shall vest _________________________________. The Optionee must be in the employ of inTEST or any of its Affiliates on such anniversary date in order for the Option to vest; provided, however, if, upon retirement of active employment with the Company or its Affiliates, the Optionee’s age plus years of service are equal to or greater than seventy-five years, and the Optionee signs and agrees to be bound by the Company’s or an Affiliate’s post-employment non-competition, non-solicitation and non-disclosure agreement, the Option shall continue to vest according to this Section 4. This Option may be exercised, in whole or in part, up to the amount vested through the date of exercise to the extent not earlier exercised and otherwise in accordance with the terms, conditions and provisions of the Plan and this Option Agreement.

     

 

(ii)

Method of Exercise. When exercisable, this Option shall be exercised only upon receipt by inTEST, in form and substance acceptable to inTEST, of (A) written notice of such exercise and (B) payment in full of the Option Price for the Option Shares to be purchased and any additional amount described in Section 13 below. Each such notice shall (A) specify the number of Option Shares to be purchased; (B) satisfy the securities law requirements set forth in the Plan; and (C) contain a statement by the Optionee acknowledging that the Option will not be treated as an incentive stock option for federal income tax purposes if the Option is exercised more than three (3) months after the termination of employment, or if the Option Shares are sold or otherwise disposed of within one (1) year of exercise or two (2) years from the Date of Grant.

 

 

 

 

 

(iii)

Restrictions on Exercise. This Option may not be exercised if the issuance of the option Shares upon such exercise would constitute a violation of any applicable federal or state securities laws or regulations or other laws or regulations. As a condition to the exercise of this Option, inTEST may require the Optionee to make any representations and warranties to inTEST as inTEST deems necessary or appropriate under any applicable law or regulation.

     
 

(iv)

Acceleration of Option Vesting. This Option shall immediately vest and be exercisable in the event: (A) the Optionee dies; (B) the Optionee incurs a Disability; or (C) a Change of Control occurs; and (1) the Unrelated Person involved in such Change of Control does not assume or substitute Awards granted under the Plan; (2) the Optionee’s employment is terminated by the Unrelated Person within two years following the Change of Control other than for Cause; or (3) the Optionee resigns for Good Reason following a Change of Control. An employee who has retired from active employment according to Section 4(i) of this Option Agreement and whose Award is not assumed or substituted by an Unrelated Person following a Change of Control is considered to be terminated without Cause. For purposes of this Option Agreement, the term “Disability” shall mean a condition of total mental or physical incapacity for further performance of a person’s duty with the Company that the Committee determines, on the basis of competent medical evidence, is likely to be permanent and constitutes a “disability” within the meaning of section 22(e)(3) of the Internal Revenue Code.

     

5.

Payment for Option Shares

   

 

The Optionee shall pay for the shares (i) in cash, (ii) by bank check payable to the order of inTEST or (iii) by such other mode of payment as inTEST may approve.

   

6.

Transfer of Option Shares

   

 

Option Shares may not be sold, pledged, assigned, hypothecated, gifted, transferred or disposed of in any manner without compliance with all applicable federal and state securities laws and regulations, and an appropriate legend referring to any restrictions on transfer and any other restrictions imposed herein or under the Plan may be endorsed on the certificates representing Option Shares.

   

7.

Disqualifying Disposition

   

 

The Optionee shall notify inTEST if any Option Shares received upon exercise of this Option are sold, assigned, gifted, transferred or disposed of in any manner within one (1) year of exercise or two (2) years from the Date of Grant (a “Disqualifying Disposition”). In the event of a Disqualifying Disposition, the Optionee shall, upon request of inTEST, provide inTEST with the amount of any federal, state or local taxes that inTEST is required to withhold with respect to such Disqualifying Disposition. If inTEST does not withhold income taxes from the Optionee with respect to a Disqualifying Disposition, the Optionee shall timely pay all income taxes resulting from such Disqualifying Disposition, shall provide inTEST with such information as requested by inTEST to substantiate the payment of such taxes, and shall indemnify inTEST against penalties or other damages imposed upon inTEST for failure to withhold taxes, to the extent such penalties or damages could have been reduced or offset had the Optionee paid his or her income taxes attributable to the Disqualifying Disposition or are otherwise attributable to the Optionee's failure to pay his or her taxes.

 

 

 

 

8.

Transfer of Option

   

 

This Option may not be sold, pledged, assigned, hypothecated, gifted, transferred or disposed of in any manner, either voluntarily or involuntarily by operation of law, other than by will or by the laws of descent or distribution, and may be exercised during the lifetime of the Optionee only by the Optionee. Subject to the foregoing, the terms of the Plan and the terms of this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

   

9.

Termination of Options

   

 

This Option shall expire as set forth above and may not be exercised later than the Expiration Date. Notwithstanding the foregoing, this Option may not be exercised after the first to occur of the following:

   

 

(i)

five years from the Date of Grant, if on such date the Optionee owns directly or by attribution under the Code, shares possessing more than ten percent (10%) of the total combined voting power of all classes of stock of inTEST;

     

 

(ii)

the date set by the Board of Directors of inTEST (the “Board of Directors”) to be an accelerated expiration date after a finding by the Board of Directors that a change in the financial accounting treatment for options from that in effect on the date the Plan was adopted materially adversely affects inTEST or, in the determination of the Board of Directors, may materially adversely affect inTEST in the foreseeable future, provided the Board of Directors may take whatever action, including acceleration of any exercise provisions, it deems necessary should it make the determination referred to above;

     

 

(iii)

expiration of one (1) year from the date the Optionee's employment or service with inTEST (or any of its Affiliates) terminates for any reason other than if the Optionee has been discharged from employment with inTEST for Cause, in which case, this Option shall expire immediately; or

     

 

(iv)

in the event of a Change of Control, the Expiration Date of any Option which has vested may be accelerated to a date not earlier than thirty (30) days after notice of such acceleration is given to the Optionee, and any Option which has not vested may be terminated.

     

10.

Amendment of Option

   

 

inTEST has the right to amend this Option, subject to the Optionee's consent if such amendment is not favorable to the Optionee, except that the consent of the Optionee shall not be required for any amendment made pursuant to the Plan.

   

11.

Amendment of the Plan

   

 

Subject to certain restrictions contained in the Plan, the Board of Directors of inTEST may amend the Plan from time to time in such manner as it may deem advisable.

   

12.

Continued Employment

   

 

The grant of this Option shall not be construed to imply or constitute evidence of any agreement, express or implied, on the part of inTEST to continue the employment of the Optionee with inTEST or any of its Affiliates.

   

13.

Withholding of Taxes

   

 

If required by inTEST, the Optionee shall, as a condition to the exercise of the Option and the issuance of Option Shares or the transfer of the Option Shares, remit to inTEST the amount of any federal, state or local taxes, including FICA taxes and other employment taxes, required to be withheld or paid under applicable law. To the extent that such taxes are not collected upon the exercise of the Option, inTEST may withhold a portion of the Option Shares or take whatever other action it deems necessary to collect all required taxes due upon the exercise of the Option or transfer of the Option Shares.

 

14.

Entire Agreement

   

 

This Option Agreement, together with the Plan, represents the entire agreement between the parties.

   

15.

Governing Law

   

 

This Option Agreement shall be construed in accordance with the laws of the State of Delaware.

 

 

 

[Signature Page Follows]

 

 

 


IN WITNESS WHEREOF, inTEST executes this Option Agreement as of the day and year set forth above.

 

 

 

 

 

inTEST Corporation

   
   
 

By: _______________________________
Hugh T. Regan, Jr.
Secretary, Treasurer and Chief Financial Officer 

 

 

 

 

ACKNOWLEDGMENT

 

 

 

The Optionee acknowledges receipt of a copy of the Plan and a copy of the Prospectus covering the Option Shares to be issued pursuant to the Plan, copies of which are attached hereto, and Optionee represents that he or she has read and is familiar with the terms, conditions and provisions thereof and hereby accepts the Option granted ______________ subject to all the terms, conditions and provisions thereof. The Optionee hereby agrees to accept as binding, conclusive and final, all decisions or interpretations of the Board of Directors or the Committee upon any questions arising under the Plan.

 

 

Date:    

 

      Name:
       
 

 

 

Address:

 

 

 


NOTICE OF EXERCISE OF STOCK OPTION

 

To:

inTEST Corporation
804 East Gate Drive, Suite 200
Mt. Laurel, NJ 08054
Attn: Chief Financial Officer

 

_____________, 20___

 

 

 

In accordance with Section 4 of the Incentive Stock Option Agreement granted as of ______________ (the “Option”), I hereby irrevocably elect to exercise the Option to purchase ____________________ Option Shares of the Common Stock of inTEST Corporation (the “Corporation”) at the exercise price of __________________ ________________ ($____) per Option Share and deliver herewith a bank check payable to the order of the Corporation for the aggregate exercise price of $__________________.

I agree to notify the Chief Financial Officer of the Corporation at the address set forth above, or at such other address as the Corporation may designate in the future, in the event I sell, assign, gift, transfer or otherwise dispose of any of the Option Shares within one (1) year of exercise or two (2) years from the Date of Grant (a “Disqualifying Disposition”).

I understand that any Disqualifying Disposition of the Option Shares will result in the Option not qualifying as an incentive stock option with respect to such Option Shares. If requested by the Corporation, I will provide the Corporation the amount of any taxes the Corporation is required to withhold as a result of a Disqualifying Disposition of Option Shares. Furthermore, the Option must be exercised within three (3) months following the termination of my employment with the Corporation in order to maintain the incentive stock option status with respect to Option Shares issuable upon such exercise.

 

 

 

  Signature*:    
  Name*:
Address:

Phone:
   

 

 

*     The signature and name should correspond exactly with the name on the first page of the Option.

 


Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-Q’ Filing    Date    Other Filings
Filed on:8/13/198-K/A
For Period end:6/30/19
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