Document:

EXHIBIT 10.4

 

FORM OF
BEHRINGER HARVARD HOLDINGS

SERVICE MARK LICENSE AGREEMENT

 

THIS SERVICE MARK LICENSE AGREEMENT (this “Agreement”) is made and entered into this
[    ] day of
[          ], 2011, (the “Effective Date”), by and between BEHRINGER HARVARD HOLDINGS,
LLC, a Delaware limited liability company (the “Licensor”),
and BEHRINGER HARVARD MULTIFAMILY REIT II, INC., a Maryland corporation
(the “Licensee”).

 

RECITALS

 

WHEREAS, Licensor is the owner of valid and subsisting rights
in and to the service marks “BEHRINGER HARVARD” (U.S. Registration No.
2,947,624); and the “BEHRINGER HARVARD MISCELLANEOUS CIRCULAR DESIGN LOGO”
(U.S. Registration No. 3,200,214) (referred to herein collectively as the “Licensed Mark”) and similar marks in a variety of design and
words-only formats, both in the United States and in various foreign
jursidictions; and

 

WHEREAS, of even date herewith, Behringer Harvard Multifamily Advisors II, LLC,
a Texas limited liability company and an affiliate of Licensor (the “Advisor”), and Licensee have entered into an Advisory
Management Agreement, pursuant to the terms of which Advisor will provide
certain management and financial advisory services to Licensee in accordance
with the terms and conditions thereof (the “Advisory
Agreement”); and

 

WHEREAS, Licensor is a “sponsor” of Licensee, as that term is defined in the
charter of Licensee; and

 

WHEREAS, for so long as Licensor desires to sponsor Licensee, Licensor desires to
permit Licensee to utilize the Licensed Mark solely in connection with the
operation and promotion of Licensee’s real estate business as intended to be
conducted as of the Effective Date (the “REIT Operations”).

 

NOW, THEREFORE, in consideration of the mutual covenants and promises contained in this
Agreement, the Advisory Agreement and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged and accepted by
the parties to this Agreement, Licensor and Licensee mutually agree as follows:

 

AGREEMENTS

 

1.              Grant of License; Territory.

 

a.                                       Upon
the terms and conditions hereinafter set forth, Licensor hereby grants to
Licensee, for the period specified in Section 5 hereof, a non-exclusive,
royalty-free, limited and nontransferable license to use the Licensed Mark
solely for the purpose of identifying and promoting the REIT Operations
worldwide.  In addition, each person or
entity directly or indirectly controlled by Licensee on or after the Effective
Date, either through the ownership of voting securities or otherwise (each
person or entity a “Licensee Subsidiary”),
shall have all of the rights granted to Licensee in this Section 1(a), but only
during the period that the person or entity is directly or indirectly
controlled by Licensee, either through the ownership of voting securities or
otherwise.  Any reference in this
Agreement to use of the Licensed Mark by or other actions of Licensee shall be
deemed to include use of the Licensed Mark by or other actions of any Licensee
Subsidiary during the period that the Licensee Subsidiary is directly or
indirectly controlled by Licensee, either through the ownership of voting
securities or otherwise.

 

 

b.                                      Licensor
expressly reserves all rights with respect to the Licensed Mark not expressly
granted herein.  Except as provided in
Section 1(a) with respect to a Licensee Subsidiary, Licensee shall have no
right to sublicense the use of the Licensed Mark to any other person or entity
without the prior written consent of Licensor, which may be withheld or granted
in Licensor’s sole and absolute discretion.

 

2.              Acknowledgement of Ownership.

 

a.                                       Licensee
acknowledges the great value of the goodwill associated with the Licensed Mark
and the ownership of the Licensed Mark by Licensor.  Licensee agrees that nothing in this
Agreement shall give Licensee any right, title, or interest in or to the
Licensed Mark other than the rights granted the Licensee in accordance with
this Agreement.  Licensee further
acknowledges that all goodwill arising from the ownership and use of the
Licensed Mark (as distinguished from any enhancement of value to Licensee’s
business arising from the license granted hereunder) shall inure exclusively to
the benefit of Licensor.  All artwork,
designs, stylized logotypes or other presentation materials whatsoever
including the Licensed Mark or any elements thereof, and all copies and
extracts thereof shall, notwithstanding their invention or use by Licensee, be
and remain the sole property of Licensor. 
Nothing in this Agreement shall be construed to prevent Licensor from
granting any other licenses for the use of the Licensed Mark or from utilizing
the Licensed Mark, or any variation thereof, in any manner whatsoever.

 

b.                                      Licensee
agrees that it shall not attack the title of Licensor to the Licensed Mark, the
validity of the Licensed Mark, or the validity of this Agreement.  Licensee further agrees that it shall not at
any time commence any opposition or cancellation proceeding regarding the
Licensed Mark, or any other mark of Licensor, with the U.S. Patent and
Trademark Office or any other agency that registers trademarks, commence any
civil proceeding for damages or injunctive relief or make any other legal claim
that would, directly or indirectly, hinder the value of or the Licensor’s
ownership or use of the Licensed Mark or prevent the U.S. Patent and Trademark
Office or any other agency that registers trademarks from issuing a trademark
registration to Licensor for the Licensed Mark, or any variations thereof, or
from renewing any trademark registration for the Licensed Mark, or any variations
thereof.

 

c.                                       Licensee
shall not register or attempt to register the Licensed Mark alone or as part of
its own trademark, service mark, Internet domain name, copyright, assumed name
or trade name (except as may be otherwise required by applicable law in
connection with Licensee’s REIT Operations during the term of this Agreement),
nor shall Licensee use in such manner or attempt to register any name or
designation confusingly similar to the Licensed Mark as determined in Licensor’s
sole and absolute discretion.

 

d.                                      Licensee
may not use the Licensed Mark in any manner to disparage Licensor, its products
or services, or in any manner which, in Licensor’s reasonable judgment, may
diminish or otherwise damage Licensor’s goodwill in the Licensed Mark or
Licensor’s business reputation.

 

e.                                       The
provisions of this Section 2 shall survive the expiration or termination of
this Agreement for any reason.

 

3.              Quality Control.

 

a.                                       Licensee
shall use the Licensed Mark solely as permitted in Section 1(a) above in a
manner that will reasonably protect Licensor’s rights and goodwill therein, and
will comply with all reasonable and customary trademark usage guidelines
delivered to Licensee by Licensor from time to time, including those regarding
the use of notices, legends, or markings that may be required by Licensor in
order to give customary notice of ownership, including those provided in
Section 4 hereof.

 

2

 

b.                                      Licensee
shall, upon Licensor’s reasonable request: (i) permit Licensor to inspect the
manner in which the Licensee exercises the rights granted hereunder to use the
Licensed Mark, and (ii) make available for Licensor’s inspection, at reasonable
times and after reasonable notice from Licensor, all of Licensee’s materials
relating to or displaying the Licensed Mark or any elements thereof.

 

c.                                       Licensee
agrees that the products and services offered in connection with the Licensed
Mark shall be sold and distributed in accordance with all Federal, State and
local laws.

 

d.                                      If at
any time the Licensee’s promotional materials, documents or signage bearing the
Licensed Mark do not meet the quality standards described in this Section 3,
Licensor shall have the right to require the Licensee to discontinue any and
all nonconforming uses of the Licensed Mark immediately upon notice whereupon
Licensee agrees to use its best efforts to cease all nonconforming uses
immediately.

 

4.                                      Protection of Licensed Mark.

 

a.                                       Each
time the Licensed Mark is used on any product, document, signage, exterior
display or other printed or tangible material or on the Internet, Licensee
shall legibly include either the trademark or service mark notice “TM” or “SM”,
as appropriate, or the Federal registration notice ®, if directed to do so by
Licensor, adjacent to the first prominent use of the Licensed Mark therein or
thereon.

 

b.                                      When
directed by Licensor to do so, Licensee shall include the following notice on
any packaging, product, advertising, or promotional materials incorporating the
Licensed Mark presented in any medium now known or hereafter created:

 

“BEHRINGER HARVARD” is a service mark of Behringer Harvard Holdings, LLC.

 

c.                                       Licensee
agrees to provide Licensor with any assistance as Licensor may reasonably
require, at Licensor’s expense, in the procurement of any protection of
Licensor’s rights to the Licensed Mark, or any similar mark.

 

d.                                      Licensee
agrees that at all times during the term of this Agreement it will diligently
and continuously cause to be promoted and rendered the REIT Operations as set
forth in Section 1 hereof.  Licensor
shall not be under any obligation whatsoever to utilize the Licensed Mark or
any variation thereof.

 

5.                                      Term.

 

This Agreement shall continue in force and effect from
the Effective Date and shall be coterminous with the Licensor’s sponsorship of
Licensee, unless terminated earlier as provided for herein.  For purposes of the preceding sentence,
Licensor’s sponsorship shall be deemed to continue until the time that no
Affiliate (as that term is defined in the Advisory Agreement) of Licensor
serves as an officer or director of Licensee.

 

6.                                      Termination.

 

a.                                       If
Licensee breaches or otherwise fails to perform any of its obligations
hereunder, Licensor shall have the right to terminate this Agreement upon
thirty (30) days’ prior written notice to Licensee, but only in the event the
failure of performance is not cured to Licensor’s satisfaction within the
thirty (30) day period.  Termination of
this Agreement shall be without prejudice to any rights or remedies 

 

3

 

that Licensor may otherwise have against Licensee, which
rights and remedies shall survive any termination.

 

b.                                      If at
any time during the term of this Agreement Licensee ceases to conduct the REIT
Operations under the Licensed Mark, Licensor, in addition to all other remedies
available to it hereunder, may immediately terminate this Agreement by giving
written notice of termination to Licensee.

 

c.                                       If
Licensee files a petition in bankruptcy or is adjudicated bankrupt or if a
petition in bankruptcy is filed against Licensee or if it becomes insolvent, or
makes an assignment for the benefit of its creditors or an arrangement pursuant
to any bankruptcy law, or if Licensee liquidates or discontinues its business
or if a receiver is appointed for it or its business, the license hereby
granted and this Agreement shall automatically terminate forthwith without any
notice whatsoever being necessary.  In
the event this Agreement is so terminated, Licensee, its receivers,
representatives, trustees, agents, administrators, successors or assigns shall
have no right to sublicense, sell, exploit or in any way deal with or in or use
the Licensed Mark or any variation thereof, except with and under the special
consent and instructions of Licensor in writing, which they shall be obligated
to follow.

 

d.                                      Upon
termination of this Agreement for any reason, Licensee agrees:  (i) to, within a reasonable time but not
to exceed ninety (90) days, discontinue all use of the Licensed Mark and any
name confusingly similar thereto; (ii) to, within a reasonable time but
not to exceed ninety (90) days, delete, remove or cover-over all references to
the Licensed Mark, or any confusingly similar variation thereof, in all of
Licensee’s printed materials, signage or other exterior displays, and on the
Internet; (iii) to not thereafter, directly or indirectly, identify itself
in any manner as a licensee of Licensor or publicly identify itself as a former
licensee of Licensor; (iv) to cooperate generally with Licensor to ensure
that all rights in the Licensed Mark and the related goodwill remain the
property of Licensor and to execute any instruments requested by Licensor to
accomplish or confirm the foregoing; (v) that all rights granted to Licensee
hereunder shall forthwith revert to Licensor without consideration other than
the mutual covenants and considerations of this Agreement, and without notice;
(vi) to cease to conduct any business, including, without limitation, the REIT
Operations, under or to otherwise use the names “HARVARD” or “BEHRINGER” or any
confusingly similar terms and to use its best efforts to change the corporate
name of Licensee to a name that does not contain the terms “HARVARD” or “BEHRINGER”
or any confusingly similar terms which may, directly or indirectly in the sole
discretion of Licensor, indicate a continuing relationship between, or
sponsorship of, Licensee by Licensor or any of Licensor’s Affiliates; and (vii)
to deliver to Licensor within fifteen days from the date of termination any and
all artwork, designs, stylized logotypes or other electronic or intangible
presentation materials whatsoever including the Licensed Mark or any elements
thereof prepared by or for Licensee, and all copies and extracts thereof.

 

e.                                       Licensee
acknowledges that its failure to cease the use and display of the Licensed
Mark, or any variation thereof, upon the termination or expiration of this
Agreement will result in immediate and irremediable damage to Licensor and to
the rights of any current or subsequent licensee.  Licensee acknowledges and admits that there
is no adequate remedy at law for the failure to cease the use, and Licensee
agrees that in the event of the failure Licensor shall be entitled to equitable
relief by way of temporary and permanent injunction and temporary restraining
order and any other further relief as any court with jurisdiction may deem just
and proper.  Resort to any remedies
referred to herein shall not be construed as a waiver of any other rights and
remedies to which Licensor is entitled under this Agreement or otherwise.

 

7.                                      Third-Party Infringement Proceedings.

 

Licensee agrees to promptly notify Licensor of any
unauthorized use of the Licensed Mark or any confusingly similar variation
thereof by third parties of which Licensee becomes aware.  Licensor shall 

 

4

 

have the sole right to pursue through negotiations,
litigation, or other dispute resolution procedure (“Litigation
Rights”) any and all of its rights in the Licensed Mark against any
third party.  Licensor’s exercise of the
Litigation Rights shall be in its sole discretion and shall be at its sole
cost.  Licensor shall have no duty to
defend Licensee or itself or pursue any actual infringement arising out of any
actions by a third party.  All recoveries
received by Licensor in pursuing its Litigation Rights, if any, shall be the
sole property of Licensor.

 

8.                                      Representations and Warranties.

 

a.                                       Licensor
represents and warrants that this Agreement will not violate any prior licenses
or rights to use the Licensed Mark granted by Licensor to any third party.

 

b.                                      Each
party hereto hereby represents and warrants to the other that the party has the
corporate, company or partnership power and authority to execute and deliver
this Agreement and to perform its obligations hereunder, and that the
execution, delivery and performance of this Agreement by it have been duly
authorized by all necessary corporate, company or partnership action.

 

9.                                      Indemnification.

 

                                                Licensee hereby agrees to indemnify and hold Licensor harmless from and
against any and all claims, suits, liabilities, judgments, and expenses,
arising at law or in equity, attributable, in whole or in part, to: (i) the
Licensee’s use of the Licensed Mark in violation of this Agreement or of any
trademark usage guidelines provided to Licensee by Licensor; or (ii) the
marketing, promotion, advertisement, distribution, or sale by Licensee of any
product or service under the Licensed Mark. 
Moreover, Licensee hereby further agrees to tender to Licensor the
defense of any and all claims, actions and lawsuits that may be brought against
Licensor arising out of, or related to, the wrongful use of the Licensed Marks
by the Licensee and the Licensee shall pay all fees and expenses (including all
reasonable attorneys’ and expert witnesses’ fees and costs of suit) incurred in
connection with defending all of these claims, actions and lawsuits; provided
that Licensee shall have no obligation to pay any fees or expenses for claims,
actions and lawsuits brought by a third party against the Licensor claiming
that the Licensed Mark violates or infringes upon the rights of the third
party.  Licensor shall control the
defense with counsel of its choice, however, Licensee shall have the right to
participate in the defense at its own cost and expense and Licensee shall
provide reasonable cooperation to Licensor and its counsel with respect
thereto; provided that in no event may Licensor settle any claim, action or
lawsuit in which the Licensee or a Licensee Subsidiary is a named defendant
without the consent of the Licensee. 
Licensor shall also have the independent right to take any action it may
deem necessary, in its sole discretion, to protect and defend itself against
any threatened action arising out of the business of Licensee or any actions or
activity by Licensee, including Licensee’s use of the Licensed Mark or any
goods or services distributed or sold under the Licensed Mark.  Notwithstanding the foregoing, Licensee’s
exculpation and indemnification obligations hereunder as well as Licensee’s
obligations with respect to the advancement of expenses, shall be limited as
provided in its charter.

 

10.                               Limitation
of Liability

 

Licensor shall not be liable to Licensee for lost
profits, lost business opportunities, or any other indirect, special, punitive,
incidental or consequential damages arising out of or related to this
Agreement, even if Licensor has been advised of the possibility of
damages.  The provisions of this Section
10 shall survive the termination of this Agreement for any reason.

 

5

 

11.                               Miscellaneous

 

a.                                       Assignment.  Licensee shall neither assign
any of its rights under this Agreement nor delegate any of its duties hereunder
to another person or legal entity without the prior written consent of
Licensor, which may be withheld in Licensor’s sole discretion.  Any attempt to assign or delegate this
Agreement, or any of the rights, licenses or duties set forth herein, shall be void
ab initio and convey no rights or interests in the Licensed Mark.  Licensor shall have the right, in its sole
discretion, to assign any of its rights or duties under this Agreement and all
of its right, title, and interest in the Licensed Mark to another person or
legal entity.  Notwithstanding anything
to the contrary herein, this Section 11(a) shall not limit the rights granted
in Section 1(a) with respect to a Licensee Subsidiary.

 

b.                                      Notices.  All notices or other communications required
or permitted to be given by either party hereto to the other party under this
Agreement shall be in writing and shall be sent by United States Mail,
certified or registered, postage prepaid, return receipt requested or by
an internationally recognized overnight carrier, in each case addressed to the
party to be notified as follows:

 

(i) to Licensee at the
address set forth in the Advisory Agreement, as the same may be modified as
provided therein; and

 

	
  (ii) to Licensor:

  	
   

  	
  Behringer Harvard Holdings, LLC

  
	
   

  	
   

  	
  15601 Dallas Parkway

  
	
   

  	
   

  	
  Suite 600

  
	
   

  	
   

  	
  Addison, Texas 75001

  
	
   

  	
   

  	
  Attention:

  	
  Gerald J. Reihsen III

  
	
   

  	
   

  	
   

  	
  Executive Vice President Corporate 

  
	
   

  	
   

  	
   

  	
  Development and Legal

  
	
   

  	
   

  	
   

  	
   

  
	
  With a copy to (which
  shall not constitute notice):

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Stephen L. Sapp, Esq.

  
	
   

  	
   

  	
  Locke Lord Bissell & Liddell LLP

  
	
   

  	
   

  	
  2200 Ross Avenue, Suite 2200

  
	
   

  	
   

  	
  Dallas, Texas 75201

  
							

 

Notice delivered by mail shall be deemed given on
the third Business Day after being deposited in a post office or other
depository under the care or custody of the United States Postal Service,
enclosed in a wrapper with proper postage affixed.  Notice given by overnight courier shall be
deemed given upon receipt by the recipient of notice.  Licensor may change the address for notice
specified herein by providing written notice to Licensee as set forth herein.

 

c.                                       Independent
Contractors.  The parties acknowledge and agree that they
are dealing with each other hereunder as independent contractors.  Nothing contained in this Agreement shall be
interpreted as constituting either party the joint venturer or partner of the
other party or as conferring upon either party the power or authority to bind
the other party in any transaction with third parties.

 

d.                                      Attorneys’
Fees.  In the
event of any action, suit, or proceeding brought by either party to enforce the
terms of this Agreement, the prevailing party shall be entitled to receive its
costs, expert witness fees, and reasonable attorneys’ fees and expenses,
including costs and fees on appeal.

 

e.                                       Waivers,
Cumulative Remedies and Amendments.  This Agreement may be amended, modified,
superseded, or canceled, and the terms and conditions hereof may be waived only
by a written 

 

6

 

instrument signed by each of the parties hereto or, in
the case of a waiver, by the party waiving compliance.  No delay on the part of any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any party of any right hereunder,
nor any single or partial exercise of any rights hereunder, preclude any other
or further exercise thereof or the exercise of any other right hereunder.  Unless expressly set forth herein to the
contrary, either party’s election of any remedies provided for in this Agreement
shall not be exclusive of any other remedies available hereunder or otherwise
and all remedies shall be deemed to be cumulative.

 

f.                                         Approval.  Any approval given by Licensor to Licensee
under the terms of this Agreement shall not constitute a waiver of any of
Licensor’s rights or Licensee’s duties under any provision of this Agreement,
other than with respect to the provision for which the specific approval was
provided, subject to the other provisions hereof.

 

g.                                      Survival.  Upon the termination of this
Agreement for any reason, those Sections that by their express terms or which
by their nature should be deemed to survive the termination of this Agreement
shall survive the termination of this Agreement.

 

h.                                      Governing
Law and Validity.  The parties agree that the laws of the State
of Texas shall govern the interpretation and enforcement of this Agreement,
without giving effect to choice of law rules. 
If any provision of this Agreement is held to be void, invalid or
inoperative, the event shall not affect any other provisions herein, which
shall continue and remain in full force and effect as though the void, invalid
or inoperative provision had not been a part hereof.

 

i.                                          Entire Agreement.  This Agreement constitutes the entire
agreement between the parties hereto with respect to the Licensed Mark and
related subject matter and supersedes all prior agreements and understandings,
oral and written, between the parties hereto with respect to those matters.

 

[Signature Page
Follows]

 

7

 

IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed as of the Effective Date.

 

	
   

  	
  LICENSOR:

  
	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Gerald J. Reihsen, III

  
	
   

  	
   

  	
  Executive Vice President — Corporate Development &
  Legal

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LICENSEE:

  
	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD MULTIFAMILY REIT II, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Gerald J. Reihsen, III

  
	
   

  	
   

  	
  Executive Vice President — Corporate Development &
  Legal

  

 

8Unassociated Document

    

     

    Offer
Letter

     

    

    12 July
2010

    

    

    Stewart
M. Ramsay

    *****

    

    
      	
              RE:

            	
              Formal
      offer to join Composite Technology Corporation as President, CTC Cable
      Corporation

            

    

    

    Dear Mr.
Ramsay:

    

    This
letter is to confirm, in writing, our offer to you for the position of
President, CTC Cable Corporation, our wholly owned subsidiary, with
an effective hire date of August 16, 2010. You will be reporting to Benton H
Wilcoxon, CEO, with compensation at the commencement of your employment as
follows:

    

    
      	
               
      

            	
              ·

            	
              Base
      salary of $350,000 annually, payable on a bi-weekly basis (Friday
      payday);

            

    

     

    
      	
               
      

            	
              ·

            	
              Participation
      in the Bonus Plan with a target payout of 80% of your Base Salary (the
      bonus plan has a payout range from 0-200% of
  target);

            

    

     

    
      	
               
      

            	
              ·

            	
              Relocation
      reimbursement to equal up to six months of temporary living, to include
      monthly housing payments and including incidental reasonable relocating
      expenses (including reasonable reimbursement of moving household goods,
      and real estate agent fees up to 7% of sale price of your home in Walnut
      Creek);

            

    

     

    
      	
               
      

            	
              ·

            	
              Eligibility
      to participate in CTC’s 401K program after 3 months of service, at the
      next quarterly enrollment period.  (next participation effective
      date would be October 1, 2010)  At this time there is no company
      match;

            

    

     

    
      	
               
      

            	
              ·

            	
              Eligibility
      for medical coverage through Blue Cross/Anthem, effective October 1, 2010.
      As a senior officer of CTC, your portion of the premium is covered by the
      company;

            

    

     

    
      	
               
      

            	
              ·

            	
              Eligibility
      for discount vision care through Vision Service Plan, effective October 1,
      2010;

            

    

     

    
      	
               
      

            	
              ·

            	
              Eligibility
      for dental coverage through Guardian Dental, effective October 1,
      2010;

            

    

     

    
      	
               
      

            	
              ·

            	
              Eligibility
      for life insurance, Accidental Death and Dismemberment insurance, and Long
      Term Disability insurance as administered by Guardian Insurance Company,
      effective October 1, 2010;

            

    

     

    
      	
               
      

            	
              ·

            	
              Eligibility
      to participate in a Flexible Spending
Account;

            

    

     

    
      	
               
      

            	
              ·

            	
              Paid
      Time Off (PTO) to be annually accrued at four weeks per
      year.  PTO accrual shall begin as of your effective start
      date;

            

    

     

    
      	
               
      

            	
              ·

            	
              Company-paid
      holidays as determined each year.  You will be eligible to be
      paid for company-paid holidays as of your effective start
      date;

            

    

     

    
      	
               
      

            	
              ·

            	
              You
      will be granted two million non-qualifying stock options, to be priced at
      the greater of $0.35 per option or slightly above the closing market price
      of Composite Technology Corporation’s common stock on the date of the
      acceptance of this offer, vesting on a quarterly basis over 3 years, with
      the first two vestings occurring at the end of 6 months.  This
      grant is subject to approval by the Board of Directors of Composite
      Technology Corporation.  All options will vest should a change
      of control event occurring before the 3 year vesting
    period;

            

    

     

     

     

    
      

    

    *****  This material has been omitted pursuant to a
confidential treatment request.

     

    
      	 2026 McGaw Avenue Irvine, California 92614
      USA   Tel:
      (949) 428-8500  Fax: (949) 660-1533	
              

            

    

    
      
      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

     

    
      	
               
      

            	
              ·

            	
              Composite
      Technology Corporation’s CEO reserves the right to approve all subsequent
      top management hiring decisions of CTC Cable
  Corporation;

            

    

    

    
      	
               
      

            	
              ·

            	
              As
      an on-boarding incentive, you will receive a one-time payment of
      $50,000.00 as well as a grant of $50,000.00 in stock, to be valued at the
      current market value at time of hire, less applicable withholding
      taxes.

            

    

    

    Stewart,
in accepting our offer of employment, you certify your understanding that your
employment will be on an at-will basis.  Previous conversations
regarding this offer should not be construed as a contract regarding the terms
or the duration of your employment. As an at-will employee, you will be free to
terminate your employment with Composite Technology Corporation at any time,
with or without cause or advance notice. Likewise, Composite Technology
Corporation will have the right to reassign you, to change your compensation, or
to terminate your employment at any time, with or without cause or advance
notice.  It is understood that all duties and projects assigned to you
will be accomplished in a professional manner.

    

    This
offer of employment, if not previously accepted by you, will expire seven days
from the date of this letter, although additional time for consideration of the
offer can be made available if you find it necessary. To confirm your acceptance
of this offer, please forward a signed and dated copy to me within the
prescribed time at our Irvine, CA office. Please initial all pages as
well.

    

    Additionally,
this offer of employment will be withdrawn if the pre-employment drug screen
returns results indicating violations of Composite Technology Corporation’s
illegal drug policies, or if the background checks reveal information sufficient
to cause you to be eliminated from further consideration for employment. This
would include any information provided by you that is found to be false,
incomplete, or misrepresented in any respect and may even result in immediate
discharge from employment if discovered at any point after the hire
date.

     

     

    

    Sincerely,

    

    

     

    Benton H
Wilcoxon

     

    CEO,
Composite Technology Corporation

     

     

    ACCEPTED:

     

     

    
      	 	 	 	 
	Stewart
      Ramsay     	 	Date	 

    

     

     

     

     

    
      
        	 2026 McGaw Avenue Irvine, California 92614
      USA   Tel:
      (949) 428-8500  Fax: (949) 660-1533

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