Exhibit 4.1



 


EXHIBIT 4.1


 


SOLAR ENERGY INITIATIVES,
INC.


 


2012 EMPLOYEE AND CONSULTANT
STOCK COMPENSATION PLAN


 


1.   Purpose.
The purpose of this 2012 Employee and Consultant Stock Plan (“Plan”) is to provide compensation in the form of common
stock (“Common Stock”), $0.001 par value, of US Natural Gas Corp (the “Company”)
to employees and “eligible consultants” (as defined in Section 3 hereof) who have previously rendered services
to the Company or who will render services to the Company in the future.


 


2.   Administration.
(a) This Plan shall be administered by the Board of Directors of the Company who may from time to time (i) issue orders
or adopt resolutions not inconsistent with the provisions of this Plan and (ii) interpret the provisions and supervise the administration
of the Plan. The Chief Executive Officer of the Company shall make initial determinations as to which employees and “eligible
consultants” (including professionals and advisors) will be considered to receive shares of Common Stock under the Plan and
on what terms and conditions. The Chief Executive Officer of the Company will provide a list
of such individuals to the Board of Directors. All final determinations under the Plan shall be made by the affirmative
vote of a majority of the members of the Board of Directors at a meeting called for such
purpose, or reduced to writing and signed by a majority of the members of the Board of Directors. Subject to the Company’s
Bylaws, all decisions by the Board of Directors in selecting employees and “eligible consultants,” establishing the
number of shares and construing the provisions of this Plan shall be final, conclusive and binding on all persons, including the
Company, shareholders, employees and “eligible consultants.”


 


3.   Eligible
Consultants. The Company may engage “advisors” and/or “consultants,” who may participate in this Plan
in the future, as long as such “advisors” and/or “consultants” fit the definition of “employee”
included the General Instructions to Securities and Exchange Commission (“SEC”) Form S-8, which define the term “employee”
to include any employee, director, general partner, officer, consultant or advisor. Such General Instructions impose three essential
limitations on “consultants” and “advisors” eligible for participation in a plan covered by SEC Form S-8.
Therefore, in order for a “consultant” or “advisor” to the Company to be an “eligible consultant”
under this Plan and to be eligible to receive shares of Common Stock under this Plan and pursuant to a Form S-8 filed by
the Company with the SEC, such “consultant” and/or “advisor” (i) must be a natural person; (ii) must provide
bona fide services to the Company; and (iii) the services rendered by such “consultant”
or “advisor” may not be in connection with the offer or sale of securities in a capital-raising transaction and may
not directly or indirectly promote or maintain a market for the Company’s securities.


 



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4.   Shares
Subject to the Plan. The total number of shares of Common Stock subject to this Plan is as follows: 2,000,000 shares of Common
Stock, par value $.001, to be awarded to employees and eligible consultants as provided herein
and as the Board of Directors may determine.


 


5.   Investment
Intent. Unless and until the sale and issuance of Common Stock subject to the Plan are registered under the Securities Act
of 1933, as amended (“Securities Act”). or shall be exempt from registration pursuant to the rules promulgated thereunder,
each grant of Common Stock under the Plan shall provide that the acquisitions of Common Stock hereunder shall be for investment
purposes and not with a view to, or for resale in connection with, any distribution thereof.
Further, unless the issuance and sale of the Common Stock has been registered under the Securities Act, each grant of Common Stock
shall provide that no shares shall be sold unless and until (i) all then applicable requirements
of state and federal laws and regulatory agencies shall have been fully complied with to the satisfaction of the Company and its
counsel; and (ii) if requested to do so by the Company, the person who is to receive a grant of Common Stock pursuant to
the Plan shall have executed and delivered to the Company a letter of investment intent and/or such other form related to applicable
exemptions from registration, all in such form and substance as the Company may require.


 


6.   Stock
Splits, Stock Dividends, Combinations or Reclassifications. In the event of any change in the outstanding stock of the
Company by reason of a stock split, stock dividend, combination or reclassification of shares, recapitalization, merger or similar
event (“Adjusting Event”), the Board of Directors may adjust proportionally (a)
the number of shares of Common Stock reserved under the Plan, which have not been granted as of the effective date of such
Adjusting Event.


 


7.   Withholding.
The Company shall have the right to deduct from any grant of Common Stock an appropriate
number of shares for payment of taxes by law or to take such other action as may be necessary in the opinion of the Company
to satisfy all obligations for withholding of such taxes. If Common Stock is used to satisfy tax withholding, such stock shall
be valued in good faith by the Board of Directors, who may use reported trading data from the principal exchange or trading platform
upon which the Company’s stock is traded for such period of time as the Board of Directors
may determine in compliance with applicable law.


 


8.   Governing
Law. The Plan and all determinations made and action taken pursuant hereto, to the extent
not otherwise governed by the securities laws of the United States or State of Delaware, shall be governed by the law of
the State of North Carolina and construed accordingly.


 



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9.   Termination
of the Plan. This Plan shall terminate upon the issuance of all shares available under
the Plan or when it is otherwise terminated by the Board of Directors.


 


10.  Effective
Date of the Plan. This Plan shall become effective upon its adoption by the Board of Directors.


 



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