Document:

Filed by Bowne Pure Compliance

 

EXHIBIT 10.7

TERMS AND CONDITIONS OF SALARY ACCRUAL

FOR GEORGE SUZUKI

The Corporation shall account for and accrue, for the account of GEORGE
SUZUKI, a gross salary at the rate of Twenty Thousand Dollars ($20,000) per month,
before employment taxes and withholdings, commencing from April 2, 2008, during
the continuation of his full-time employment with the Corporation until the
Corporation has positive cash flow from operations sufficient to commence to pay
in full GEORGE SUZUKI such salary in the Corporation’s normal course of business.

Upon the Corporation having positive cash flow from operations sufficient to
pay such salary in full, the Corporation shall begin paying amounts theretofore
accrued and unpaid, at the rate of Ten Thousand Dollars ($10,000) per month, or so
much thereof as the Corporation’s cash flow from operations permits.

Amounts accrued and unpaid shall bear interest at the rate of five percent
(5%) per year, compounded annually. Such amounts shall not be segregated and
shall represent general unsecured obligations of the Corporation.Filed by Bowne Pure Compliance

 

EXHIBIT 10.8

RSPA No.

PACIFIC FUEL CELL CORP.

RESTRICTED STOCK PURCHASE AGREEMENT

UNDER 2008 STOCK INCENTIVE PLAN

This
Restricted Stock Purchase Agreement is entered into as of the
______  day of ______, 200_,
by and between Pacific Fuel Cell Corp., a Nevada corporation (the “Company”), and George Suzuki, an
individual (the “Purchaser”) pursuant to the Company’s 2008 Stock Incentive Plan (the “Plan”).

1 Purchase and Sale of Shares.

The Purchaser hereby agrees to purchase from the Company, and the Company hereby agrees to sell to
the Purchaser, two million (2,000,000) shares of its Common Stock (the “Shares”) for a purchase
price of no dollars and one one-tenth cents ($0.001) per share. The Shares shall be duly issued
and a certificate or certificates for the Shares are concurrently herewith being issued in the name
of Purchaser. Purchaser shall thereupon be a shareholder with respect to all of the Shares
represented by such certificate(s) and shall have all of the rights of a shareholder with respect
to all of the Shares, including the right to vote the Shares and to receive all dividends and other
distributions paid with respect to the Shares, subject to the transfer restrictions provided in
this Agreement. The purchase price, if any, is payable as follows:

	 	(a)	 	by delivery of cash,
	 
	 	(b)	 	by check (considered payment only when honored by the bank against which it is drawn
upon first presentment);
	 
	 	(c)	 	by delivery of a promissory note payable to the Company, bearing interest from the
date hereof and substantially in the form attached as Exhibit A; or
	 
	 	(d)	 	any combination of cash, check and promissory note, so long as the total consideration
equals the aggregate purchase price as set forth above.

In the event payment of any portion or all of the purchase price is to be made by delivery of a
promissory note, Purchaser shall deliver to the Company a pledge of the Shares or other
securities or assets that may be listed in the Pledge Agreement dated the date hereof and
substantially in the form attached as Exhibit B. If the note is to be unsecured by the
Shares or other collateral, the Pledge Agreement shall so indicate.

The Purchaser’s rights to acquire the Shares hereunder are nontransferable other than by will or
the laws of descent and distribution, and Purchaser’s legal representative, his or her legatee, or
the person who acquired the Purchaser rights to acquire the Shares by reason of the death of the
Purchaser shall succeed to the Purchaser’s rights and obligations under this Agreement. The rights
of the Purchaser under this Agreement also may be assigned and transferred by the Purchaser (a) for
estate planning purposes to members of the immediate family of the Purchaser, including for this
purpose, but not limited to, spouses, parents, descendants, brothers and sisters, or to trusts
established for the benefit of such persons, and (b) in a transfer described in Section 1041(a) of
the Code between spouses or incident to divorce.

2 Internal Revenue Code § 83(b) Election.

Purchaser may, in Purchaser’s sole discretion, file an election provided under § 83(b) of the
Internal Revenue Code of 1986, as amended (herein called the “Code”), within thirty (30) days of
the transfer of the Shares, substantially in the form attached as Exhibit C hereto and, if
required, a comparable form of election with the appropriate state. The parties hereto acknowledge
and agree that, in the event that such election is filed, the total fair market value of the Shares
on the date of grant shall equal the average of the closing bid price and ask price of the shares
multiplied by Two Million (2,000,000) shares.

 

 

 

3 Company Repurchase Option.

In addition to all other restrictions imposed by this Agreement or applicable caw, the Shares
acquired by the Purchaser pursuant to this Agreement shall be subject to the following restrictions
and repurchase options.

3.1 Vesting Schedule.

Vesting
will be measured from the date hereof (the “Vesting Measurement Date”). The Shares acquired
hereunder shall vest and become “Vested Shares” in accordance with the following vesting schedule:

	 	 	 
	On or After:	 	Shares Vested As To:
	The second anniversary of Vesting Measurement Date:

	 	100% of the Shares

The vesting schedule of this Agreement would result, assuming Continuous Service shall have
theretofore not terminated, in One Hundred Percent (100%) of the Restricted Shares being Vested
Shares at the second anniversary of the Vesting Measurement Date. Shares that have not yet become
vested are herein called “Unvested Shares.” In the event the Continuous Service of the Purchaser
ceases (the “Service Termination Date”), all vesting shall cease unless otherwise determined by the
Board of Directors. As used herein, the term “Continuous Service” has the meaning given in the
Plan. Provided, however, that if the Purchaser’s Continuous Service ceases due to the Purchaser’s death,
the Restricted Shares that have not theretofore become Vested Shares will immediately vest in full.

In the event of a Change in Control of the Company, the Administrator in its discretion may take
one or more of the following actions with respect to the Shares (whether Vested Shares or Unvested
Shares):

	 	(a)	 	provide for the purchase or exchange of any Vested Shares for an amount of cash or
other property having a value equal to the value of the cash or other property that the
Purchaser would have received pursuant to such Change in Control transaction in exchange
for the Vested Shares and provide for the repurchase by the Company of Unvested Shares at
the repurchase price provided in this Agreement,
	 
	 	(b)	 	adjust the terms of this Agreement in a manner determined by the Administrator to
reflect the Change in Control,
	 
	 	(c)	 	cause this Agreement to be assumed, or new rights substituted therefor, by another
entity, through the continuance of the Plan and the assumption of this Agreement, or the
substitution for this Agreement of a new agreement of comparable value covering shares of a
successor or parent corporation, with appropriate adjustments as to the number and kind of
 shares, in which event the Plan and this Agreement, or the new agreement substituted
therefor, shall continue in the manner and under the terms so provided, or
	 
	 	(d)	 	make such other provision as the Administrator may consider equitable.

If the Administrator does not take any of the forgoing actions, this Agreement shall terminate upon
the consummation of the Change in Control and the Administrator shall cause written notice of the
proposed transaction to be given to the Purchaser not less than fifteen (15) days prior to the
anticipated effective date of the proposed transaction.

3.2 Company Option to Repurchase Shares following Termination of Continuous Service.

Concurrent with the Service Termination Date and for the period and under the procedures set forth
in Section 3.3 below, the Company shall have the option to repurchase (the “Repurchase Option”) all
or any portion of the Purchaser’s Unvested Shares on the terms and subject to the limitations set
forth herein.

3.3 Procedures for Exercise of Repurchase Option.

For sixty (60) days after the Service Termination Date or other event described in this Section 3,
the Company may exercise its Repurchase Option by giving Purchaser and/or any other person
obligated to sell written notice of the number of Shares that the Company desires to purchase. The
Company shall pay for such Shares by the delivery of its check in the aggregate amount of the
repurchase price determined pursuant to Section 3.5 below against delivery of the certificate(s)
representing the Shares.

 

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3.4 Deposit of Shares.

In aid of the repurchase provisions set forth herein, Purchaser shall, immediately upon receipt of
the certificate or certificates representing the Shares, deposit the certificate or certificates,
together with a stock power or other instrument of transfer appropriately endorsed in blank, with
the Company as escrow holder of the certificate(s). Upon Shares becoming Vested Shares, and in the
event that the repurchase rights with respect to any Shares are not exercised by the Company
following any Service Termination Date, the Company shall cause the certificate or certificates
representing such Shares to be delivered into the possession of Purchaser.

3.5 Repurchase Price.

The per share price for the Unvested Shares (“Unvested Stock Repurchase Price”) repurchased by the
Company pursuant to this Section 3 shall be an amount equal to the per share purchase price paid
for the Shares by the Purchaser pursuant to Section 1 above.

3.6 Repurchase in the Event of Personal Bankruptcy.

If the Purchaser:

	 	(a)	 	files a voluntary petition under any bankruptcy or insolvency law or a petition for the
appointment of a receiver or makes an assignment for the benefit of creditors;
	 
	 	(b)	 	is subjected involuntarily to such a petition or assignment or to an attachment or
other legal or equitable interest with respect to the Shares and such involuntary petition
or assignment or attachment is not discharged within sixty (60) days after its date; or
	 
	 	(c)	 	is required to transfer the Shares by operation of law or by order or decree of any
court,

then the Company shall have the option to exercise the Repurchase Right, exercisable at any time
during the period of 60 days after receiving notice thereof, to purchase all of the Unvested Shares
owned by the Purchaser upon the terms set forth in this Section 3, whether or not the Continuous
Service of the Purchaser has terminated.

3.7 Assignment of Rights.

The Company may assign its rights under this Section 3 and Section 4.

4 Breach and Non-Competition.

The Administrator may cancel, rescind, suspend, withhold or otherwise limit or restrict any Shares
or rights of Purchaser under this Agreement at any time if the Purchaser engages in any “Adverse
Activity.” For purposes of this Section 5, “Adverse Activity” shall include: (i) the rendering of
services for any organization or engaging directly or indirectly in any business which is or
becomes competitive with the Company, or which organization or business, or the rendering of
services to such organization or business, is or becomes otherwise prejudicial to or in conflict
with the interests of the Company; (ii) the disclosure to anyone outside the Company, or the use in
other than the Company’s business, without prior written authorization from the Company, of any
confidential information or material relating to the business of the Company, acquired by Purchaser
either during or after employment with the Company; (iii) the failure or refusal to disclose
promptly and to assign to the Company, all right, title and interest in any invention or idea,
patentable or not, made or conceived by Purchaser during employment by the Company, relating in any
manner to the actual or anticipated business, research or development work of the Company; (iv)
activity that results in termination of Purchaser’s employment for “cause,” defined as any willful
breach of duty by the employee in the course of his employment, or in case of his habitual neglect
of his duty or continued incapacity to perform it; (v) any material violation of any terms or
provisions of this Agreement; or (vi) any attempt directly or indirectly to induce any employee of
the Company to be employed or perform services elsewhere or any attempt directly or indirectly to
solicit the trade or business of any current or prospective customer, supplier or partner of the
Company. At the request of the Administrator, the Purchaser shall certify in a manner acceptable
to the Company that he or she is in compliance with the terms and conditions of this Section 5. In
the event Purchaser engages in Adverse Activity prior to, or during the six (6) months after, any
exercise, payment or delivery pursuant to an Option Agreement, such exercise, payment or delivery
may be rescinded at the sole election of the Company within two years thereafter. In the event of
any such rescission, the Purchaser shall pay to the Company the amount of any gain realized or
payment received as a result of the disposition of Shares, in such manner and on such terms and
conditions as may be required, and the Company shall be entitled to set-off against the amount of
any such gain any amount owed to the Purchaser by the Company.

 

3

 

5 Recapitalization.

In the event that, as the result of a stock split or stock dividend or combination of shares or any
other change, or exchange for other securities, by reclassification, or recapitalization of the
Shares, Purchaser shall be entitled to new or additional or different shares of stock or
securities, the certificate or certificates for, or other evidences of, such new or additional or
different shares or securities shall be imprinted with the legend(s) provided in Section 6, and
shall be deposited with the Company as escrow holder under the terms and conditions provided in
Section 3.4 herein, together with a stock power or other instrument or transfer appropriately
endorsed. In such event, any and all new, substituted or additional securities or other property
(other than cash) to which the Purchaser is entitled by reason of his ownership of the Shares shall
be immediately subject to the Repurchase Right and First Right of Refusal and be included in the
word “Shares” for all purposes of the Repurchase Right and First Right of Refusal with the same
force and effect as the Shares subject to the Repurchase Right and the First Right of Refusal under
the terms of Section 3 and Section 4. While the total Vested Stock Repurchase Price and Unvested
Stock Repurchase Price shall remain the same after each such event, the per share price shall be
appropriately adjusted. Shares acquired as provided in this Section 6 shall be deemed to have been
acquired at the time of acquisition of the Shares on which such Shares were distributed.

6 Restrictive Legends.

In addition to all other legends that the Company or its legal counsel consider appropriate under
applicable securities laws, the certificates representing any Shares, whether Vested Shares or
Unvested Shares, purchased pursuant to this Agreement shall bear substantially the following
legend:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE (INCLUDING ANY SECURITIES ISSUABLE
WITH RESPECT TO ANY RIGHT CONNECTED HEREWITH) HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933; THEY HAVE BEEN ACQUIRED BY THE HOLDER FOR INVESTMENT AND MAY
NOT BE PLEDGED, HYPOTHECATED, SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF EXCEPT AS
MAY BE AUTHORIZED UNDER THE SECURITIES ACT OF 1933, AND THE RULES AND REGULATIONS
PROMULGATED THEREUNDER. IN ADDITION ANY TRANSFEREE OR ISSUEE OF SUCH SECURITIES MAY
BE REQUIRED TO PROVIDE APPROPRIATE INVESTMENT REPRESENTATIONS PRIOR TO ANY SUCH
TRANSFER OR ISSUANCE. ANY TRANSFER OR DISPOSITION WITHOUT THE APPROVAL OF THE
ISSUER’S 2008 STOCK INCENTIVE PLAN ADMINISTRATOR IS VOID AND OF NO FORCE OR EFFECT
WHATSOEVER.

Until such time as the Company’s Repurchase Rights terminate pursuant to Section 3.6, the stock
certificates for the Shares purchased pursuant to this Agreement shall be endorsed with
substantially the following legend:

ANY DISPOSITION OF ANY INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE
(INCLUDING ANY SECURITIES ISSUABLE WITH RESPECT TO ANY RIGHT CONNECTED HEREWITH) IS
SUBJECT TO RESTRICTIONS, AND THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO REPURCHASE RIGHTS, RIGHTS OF RESCISSION AND OTHER RIGHTS CONTAINED IN A
RESTRICTED STOCK PURCHASE AGREEMENT BETWEEN THE REGISTERED HOLDER (OR HIS
PREDECESSOR IN INTEREST) AND THE CORPORATION. THESE
SECURITIES ARE NOT TRANSFERABLE EXCEPT BY WILL OR PURSUANT TO THE LAWS OF DESCENT
AND DISTRIBUTION, OR AS EXPRESSLY PERMITTED IN THE RESTRICTED STOCK PURCHASE
AGREEMENT AND THE PLAN AS DEFINED THEREIN. A COPY OF SUCH AGREEMENT AND SUCH PLAN
ARE ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY, AND A COPY THEREOF WILL BE
MAILED TO ANY HOLDER OF THIS CERTIFICATE WITHOUT CHARGE WITHIN 5 DAYS OF RECEIPT BY
THE CORPORATION OF A WRITTEN REQUEST THEREFOR.

 

4

 

7 Stop-Transfer Notices.

Purchaser understands and agrees that, in order to ensure compliance with the restrictions referred
to herein, the Company may issue appropriate “stop-transfer” instructions to its transfer agent, if
any, and that, if the Company transfers its own securities, it may make appropriate notations to
the same effect in its own records.

8 Representations and Warranties of Purchaser.

The Purchaser warrants and represents to the Company as follows:

	 	(a)	 	The Purchaser is purchasing the Shares solely for the Purchaser’s own account for
investment and not with a view to or for sale or distribution of the Shares or any portion
thereof and not with any present intention of selling, offering to sell or otherwise
disposing of or distributing the Shares or any portion thereof. The Purchaser also
represents that the entire legal and beneficial interest of the Shares the Purchaser is
purchasing is being purchased for, and will be held for the account of, the Purchaser only
and neither in whole nor in part for any other person.
	 
	 	(b)	 	The Purchaser has heretofore discussed the Company and its plans, operations and
financial condition with its officers, has heretofore received all such information as the
Purchaser deems necessary and appropriate to enable the Purchaser to evaluate the financial
risk inherent in making an investment in the Shares of the Company, and has received
satisfactory and complete information concerning the business and financial condition of
the Company in response to all inquiries in respect thereof.
	 
	 	(c)	 	The Purchaser realizes that the purchase of the Shares will be a highly speculative
investment.
	 
	 	(d)	 	The Purchaser is able, without impairing the Purchaser’s financial condition, to hold
the Shares for an indefinite period of time and to suffer a complete loss on the
investment.
	 
	 	(e)	 	The Purchaser acknowledges that he is aware that the Shares to be issued to him by the
Company pursuant to this Agreement have not been registered under the Act. The Purchaser
hereby acknowledges that:

	 	(i)	 	the Shares must be held indefinitely unless a transfer of them is subsequently
registered under the Act or an exemption from such registration is available;
	 
	 	(ii)	 	the share certificate(s) representing the Shares will be stamped with the
legends restricting transfer as specified in this Agreement; and
	 
	 	(iii)	 	the Company will make a notation in its records of the aforementioned
restrictions on transfer and legends.

	 	(f)	 	The Purchaser understands that the Shares are restricted securities within the meaning
of Rule 144 promulgated under the Act; that the exemption from registration under Rule 144
will not be available in any event for at least one year from the date of sale of the
Shares to the Purchaser, and even then will not be available unless (i) a public trading
market then exists for the Shares of the Company, (ii) adequate current public information
concerning the Company is then available to the public, (iii) the Purchaser has been the
beneficial owner and the Purchaser has paid the full purchase price for the Shares at least
one year prior to the sale, and (iv) other terms and conditions of Rule 144 are complied
with; and that any sale of the Shares may be made by it only in limited amounts in
accordance with such terms and conditions of Rule 144, as amended from time to time.
	 
	 	(g)	 	Without in any way limiting any of the other provisions of this Agreement, the
Purchaser further agrees that the Purchaser shall in no event make any disposition of all
or any portion of the Shares which the Purchaser is purchasing unless and until:

	 	(i)	 	there is then in effect a Registration Statement under the Act covering such
proposed disposition and such disposition is made in accordance with said Registration
Statement; or

 

5

 

	 	(ii)	 	(A) the Purchaser shall have notified the Company of the proposed disposition
and shall have furnished the Company with a detailed statement of the circumstances
surrounding the proposed disposition, (B) the Purchaser shall have furnished the
Company with an opinion of counsel to the effect that such disposition will not require
registration of such shares under the Act, and (C) such opinion of counsel shall have
been concurred in by counsel for the Company and the Company shall have advised the
Purchaser of such concurrence.

	 	(h)	 	The Purchaser represents and warrants that he or she has not engaged in any Adverse
Activity as defined in Section 5.
	 
	 	(i)	 	The Purchaser acknowledges that the Purchaser has been furnished with a copy of the
Plan, has read the Plan and this Agreement, and understands that all rights and obligations
connected with this Agreement are set forth in this Agreement and in the Plan.
	 
	 	(j)	 	The Purchaser is a citizen or permanent resident of the United States.

9 Unauthorized Transfers.

The Company shall not be required (a) to transfer on its books any Shares of the Company which
shall have been sold or transferred in violation of any of the provisions set forth in this
Agreement or (b) to treat as owner of such shares or to accord the right to vote as such owner or
to pay dividends to any transferee to whom such shares shall have been so transferred. In the
event of a sale of Shares by the Purchaser pursuant to Section 4, the Purchaser shall furnish to
the Company proof that such sale was made in compliance with the provisions of Section 4 as to
price and general terms of such sale. Notwithstanding any other provisions of this Agreement,
Shares may only be transferred, assigned, pledged or otherwise encumbered with the prior written
approval of the Company. The Purchaser or any holder of Shares shall provide advance written
notice of any proposed transfer, assignment or pledge of this Option or any Shares. Any transfer,
assignment, pledge or other encumbrance of Shares without the prior written approval of the Company
shall be void and ineffectual.

10 “Market Stand-Off” Agreement.

Purchaser agrees that, if requested by the Company or the managing underwriter of any proposed
Public Offering of the Company’s securities, Purchaser will not sell or otherwise transfer or
dispose of any Shares held by Purchaser without the prior written consent of the Company or such
underwriter, as the case may be, during such period of time, not to exceed 180 days following the
effective date of the registration statement filed by the Company with respect to such Public
Offering, as the Company or the underwriter may specify.

11 Entire Agreement.

This Agreement and the Plan constitutes the entire agreement between the parties pertaining to its
subject matter and supersedes all contemporaneous written or oral agreements and understandings of
the parties, either express or implied. The parties agree to execute such further instruments and
to take such further action as may reasonably be necessary to carry out the intent of this
Agreement.

12 No Creation or Enlargement of Participant’s Rights to Continue in any Capacity.

The right of the Company and any Affiliated Company (as defined in the Plan) to terminate at will
the Purchaser’s services to the Company or any Affiliated Company at any time (whether by
dismissal, discharge or otherwise), with or without cause, is specifically reserved. Nothing in
this Agreement shall diminish or impair in any manner whatsoever the right or power of the Company
or any Affiliated Company to terminate the Purchaser’s Continuous Service for any reason, with or
without cause.

 

6

 

13 Notices.

Any notice, demand or request required or permitted to be given under this Agreement shall be in
writing and shall be deemed given when delivered personally or three (3) days after being deposited
in the United States mail, as certified or registered mail, with postage prepaid, and addressed, if
to the Company, at its principal place of business, Attention: the Chief Financial Officer, and if
to the Purchaser, at his or her most recent address as shown in the records of the Company.

14 Successors and Assigns.

This Agreement shall inure to the benefit of the successors and assigns of the Company and be
binding upon the Purchaser and his heirs, executors, administrators, successors and assigns.

15 Governing Law.

The validity, construction, interpretation, and effect of this Option shall be governed by the laws
of the State of Nevada, excluding any conflicts of law or choice of law rule or principle that
might otherwise refer construction and interpretation of the plan and such agreements to the
substantive law of another jurisdiction. Optionee hereby agrees to submit to the exclusive
jurisdiction and venue of federal or state courts of Washoe County, Nevada, to resolve any and all
issues that may arise out of or relate to this Option.

16 Interpretation.

This Agreement is entered into pursuant to the terms of the Plan, and shall in all respects be
interpreted in accordance therewith. The Administrator shall interpret and construe this Agreement
and the Plan, and any action, decision, interpretation or determination made in good faith by the
Administrator shall be final and binding on the Company and the Purchaser. As used in this
Agreement, the term “Administrator” shall refer to the committee of the Board of Directors of the
Company appointed to administer the Plan, and if no such committee has been appointed, the term
Administrator shall mean the Board of Directors.

17 Counterparts.

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be
an original, but all of which together shall constitute one and the same instrument. Execution and
delivery of this Agreement or any notices, certificates or instruments contemplated herein by fax,
facsimile, or telecopier shall be deemed the execution and delivery of an originally signed
agreement, notice or instrument, as the case may be.

18 Severability.

Should any provision or portion of this Agreement be held to be unenforceable or invalid for any
reason, the remaining provisions and portions of this Agreement shall be unaffected by such
holding.

19 Amendment.

The Board shall have full power and authority (subject to certain amendments requiring shareholder
approval pursuant to applicable laws or regulations) from time to time to alter, amend, suspend or
terminate the Plan in any or all respects as the Board may deem advisable, and to alter this
Agreement in ways which shall not substantially adversely affect or impair the Purchaser’s rights
under this Agreement No such alteration, amendment, suspension or termination shall be made which
shall substantially affect or impair the rights of any Purchaser under an outstanding Restricted
Stock Purchase Agreement without such Purchaser’s consent.

 

7

 

IN WITNESS WHEREOF, the parties have executed this Restricted Stock Purchase Agreement as of the
day and year first above written.

	 	 	 	 	 
	 	 	“COMPANY”
	 
	 	 	 	 
	 	 	Pacific Fuel Cell Corp.
	 
	 	 	 	 
	 

	 	By:
	 	 
	 	 	 	 
	 

	 	Name:
	 	 
	 	 	 	 
	 

	 	Title:
	 	 
	 	 	 	 
	 
	 	 	 	 
	 	 	“PURCHASER”
	 
	 	 	 	 
	 	 	 
	 	 	 
	 	 	(Signature)
	 
	 	 	 	 
	 	 	George Suzuki
	 	 	 
	 	 	(Type or Print Name)
	 
	 	 	 	 
	 

	 	Address:
	 	 
	 	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 

 

8

 

CONSENT OF SPOUSE

I acknowledge that I have read the foregoing Agreement and that I know its contents. I am aware
that by its provisions, my spouse agrees, among other things, to a first right of refusal, to the
granting of rights to repurchase and to the imposition of certain restrictions on the transfer of
the shares of Pacific Fuel Cell Corp., a Nevada corporation (the “Company”), including my community
interest therein (if any), which rights and restrictions may survive my spouse’s death. I hereby
consent to such rights and restrictions and approve of the provisions of the Agreement.

I further agree that in the event of a dissolution of the marriage between myself and my spouse, in
connection with which I secure or am awarded shares of the common stock of the Company, or any
interest therein through property settlement agreement or otherwise, I shall receive and hold said
shares subject to all the provisions and restrictions contained in the foregoing Agreement,
including any option of a shareholder or the Company to purchase such shares or interest from me.

I also acknowledge that I have been advised to obtain independent counsel to represent my interests
with respect to this Agreement but that I have declined to do so and I hereby expressly waive my
right to such independent counsel.

	 	 	 	 	 
	 

	 	Date:
	 	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	 
	 	 	(Signature)
	 
	 	 	 	 
	 	 	 
	 	 	 
	 	 	(Type or Print Name)
	 
	 	 	 	 
	 

	 	Spouse of  
	George Suzuki
	 	 	 	 	 

 

9

 

EXHIBIT A

TO RESTRICTED STOCK PURCHASE AGREEMENT

PROMISSORY NOTE

(_____ YEAR, [_____]%* Interest)

                                        ,                                         , California

For value received, the undersigned promises to pay Pacific Fuel Cell Corp., a Nevada
Corporation (the “Company”), at the address of its principal office, the sum of
                                                             Dollars ($                    ) in
full by or before the                      anniversary date of the date hereof, together with interest thereon
as hereinafter provided.

The undersigned shall have the right to prepay said principal amount at any time in whole or in
part without penalty. Simple annual interest at the rate 1 of                      percent
(                    %) per annum on unpaid principal shall be paid annually on each anniversary of the date
hereof and upon each prepayment of principal, if any.

The entire outstanding principal and interest shall be due and payable if any one or more of the
following events shall have occurred:

	 	(a)	 	The making by the undersigned of any assignment for the benefit of creditors or the
filing by or against the undersigned of any petition in bankruptcy if such proceeding not
be discharged within ninety (90) days of any such making or filing.
	 
	 	(b)	 	The occurrence of any termination of Continuous Service as set forth in the Restricted
Stock Purchase Agreement of even date herewith between the undersigned and the Company.

If any installment of principal and/or interest is not paid when due, the holder hereof may, at its
option, declare the entire amount of this note immediately due and payable.

All payments hereon shall be credited first to accrued but unpaid interest, and the balance, if
any, shall be credited to principal.

If legal action is instituted for the collection of this note, the undersigned promises to pay such
sum as the Court may adjudge reasonable as attorneys’ fees.

This note is given pursuant to that certain Restricted Stock Purchase Agreement of even date
herewith, between the Company and the undersigned and is subject to all of the terms, rights and
remedies set forth therein. This note is secured by a Pledge Agreement of even date herewith
between the Company and the undersigned.

	 	 	 
	 
	 	 
	 	 	 
	 

	 	(Signature)
	 
	 	 
	 
	 	 
	 	 	 
	 

	 	(Type or Print Name)

*A fixed rate of interest is to be determined from time to time by action of the Board of Directors
in accordance with prevailing rates and the Internal Revenue Service prescribed interest rules.

 

A-1

 

EXHIBIT B

TO RESTRICTED STOCK PURCHASE AGREEMENT

PLEDGE AGREEMENT

THIS PLEDGE AGREEMENT (“Agreement’) is executed as of this
 _____ 

day of
 _____ 

,
 _____ 

, between
Pacific Fuel Cell Corp., a Nevada corporation (the “Company”), and (“Purchaser”).

WITNESSETH:

For the considerations and undertakings set forth herein, the parties do hereby agree as follows:

	 	1.	 	To secure payment to the Company of a promissory note (“Note”) in the face amount of
                                         Dollars ($                    ), and extensions or renewals thereof, which
was executed concurrently with the execution of this Pledge Agreement pursuant to a
Restricted Stock Purchase Agreement of even date herewith between the Company and
Purchaser, Purchaser hereby assigns and grants to the Company a security interest in
                                         (                    ) shares (“Shares”) of the Common Stock of the Company acquired
under the Restricted Stock Purchase Agreement, together with securities or other collateral
(if any) other than such Shares, all described as follows:

Issuer:                                                                

Certificate Number:                                          

Number of Shares:                                           

Registered Owner:                                           

Purchaser does hereby deposit with the Company, as pledge holder, such certificates,
together with duly executed stock transfer powers.

	 	2.	 	Subject to any obligations of Purchaser under the Restricted Stock Purchase Agreement,
the Company agrees that within a reasonable time after all or any portion of the Note is
paid by Purchaser, the Company shall release and deliver to Purchaser the number of Shares
held hereunder for which such payment was received. The Company, in its discretion, may
release portions of the Shares upon periodic principal payments or deposit of other or
additional security under the Note. All Shares released and delivered to Purchaser shall
be free and clear of the restrictions of this Pledge Agreement.
	 
	 	3.	 	Unless and until Purchaser defaults in his performance under the terms of the Note, the
terms of this Pledge Agreement and/or the terms of the Restricted Stock Purchase Agreement,
the Shares held by the Company at any time under this Pledge Agreement shall remain
registered in the name of Purchaser on the records of the Company, and Purchaser may vote
the Shares on all corporate questions (if the same shall be entitled to voting rights) and
shall be entitled to receive all dividends and other amounts accruing as a result of his
ownership of the Shares.
	 
	 	4.	 	In the event the Purchaser defaults in the performance of any of the terms of the Note,
this Pledge Agreement or the Restricted Stock Purchase Agreement, the Company may exercise
any and all rights which it may have under the Nevada Uniform Commercial Code or any other
applicable statute, case, ruling regulation or law; subject, however, to all permits,
orders, consents, rules and regulations of the Nevada Secretary of State and the Securities
and Exchange Commission and the Federal Reserve Board relating hereto, to which Purchaser
agrees to be bound.

 

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	 	5.	 	If during the term of this Pledge Agreement the Company should become a party to any
merger, consolidation or other reorganization, this Pledge Agreement shall be adjusted so
as to apply to the securities to which a holder of the Shares subject to this Pledge
Agreement would have been entitled upon such merger, consolidation or reorganization; and, if during the term of this Pledge
Agreement the Company shall be dissolved or its existence otherwise terminated, then that
portion of the assets and consideration to which a holder of the Shares subject to this
Pledge Agreement would have been entitled in such transaction shall be the subject matter of
this Pledge Agreement for the remainder of its term. This shall in no way limit the right
of the Company to repurchase shares under the Restricted Stock Purchase Agreement.
	 
	 	6.	 	This Pledge Agreement shall inure to the benefit of and be binding upon the heirs,
executors and administrators of the parties hereto.
	 
	 	7.	 	The rights, powers and remedies given to the Company by this Agreement shall be in
addition to all rights, powers and remedies given to the Company under the Restricted Stock
Purchase Agreement or any statute or rule of law. Any forbearance or failure or delay by
the Company in exercising any right, power or remedy hereunder shall not be deemed to be a
waiver of such right, power or remedy, nor shall any single or partial exercise of any
right, power or remedy preclude the further exercise thereof.
	 
	 	8.	 	The Board of Directors may demand and receive payment or additional security if for any
reason the collateral hereunder is insufficient to meet minimum requirements established
under federal or state securities or banking regulations or as may be necessary to bring
the Note and the security into compliance with any such law or regulations. Any failure of
Purchaser to meet any such demand shall be deemed a default under this Pledge Agreement and
under the note secured hereby.

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

	 	 	 	 	 
	 	 	“COMPANY”
	 
	 	 	 	 
	 	 	Pacific Fuel Cell Corp.
	 
	 	 	 	 
	 

	 	By:
	 	 
	 	 	 	 
	 

	 	Name:
	 	 
	 	 	 	 
	 

	 	Title:
	 	 
	 	 	 	 
	 
	 	 	 	 
	 	 	“PURCHASER”
	 
	 	 	 	 
	 	 	 
	 	 	 
	 	 	(Signature)
	 
	 	 	 	 
	 	 	 
	 	 	 
	 	 	(Type or Print Name)
	 
	 	 	 	 
	 

	 	Address: 
	 
	 	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 

 

B-2

 

EXHIBIT C

TO RESTRICTED STOCK PURCHASE AGREEMENT

SECTION 83(b) ELECTION

Date:                                   ,               

Internal Revenue Service Center

Re: Election Under Section 83(b) of the Internal Revenue Code

Dear Sir or Madam:

The undersigned performed services in connection with which property was transferred to the
undersigned that, at the time of transfer, was not transferable by the undersigned and was subject
to a substantial risk of forfeiture. The undersigned hereby makes this election pursuant to
Section 83(b) of the Internal Revenue Code.

In connection with this election, the undersigned hereby provides you with the following
information:

	 	1.	 	The undersigned’s name, address, social security number, and the taxable year of the
person who performed the services are as follows:

	 	 	 	 	 	 	 	 	 
	 	 	Name and Address:	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Social Security No.:	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Taxable Year:	 	Calendar Year

	 	2.	 	A description of the property with respect to which the election is being made:

                     shares of Common Stock (the “Shares”) of Pacific Fuel Cell Corp., a Nevada
corporation (the “Company”).
	 
	 	3.	 	The date on which the property was transferred:
	 
	 	4.	 	A description of the nature of the restrictions to which the property is subject:

The Company may reacquire all or any part of the Shares from the undersigned in accordance with a
repurchase schedule set forth in a Restricted Stock Purchase Agreement (the “Agreement”) between
the undersigned and the Company. In the event the undersigned should cease to be a service
provider to the Company at any time, the Company may repurchase unvested Shares at the original
price paid by the undersigned. The Shares acquired under the Agreement shall vest and become
“Vested Shares” at a date measured from the date hereof (the “Vesting Measurement Date”) in accordance with
the following vesting schedule:

	 	 	 
	On or After:	 	Shares Vested As To:
	The second anniversary of Vesting Measurement Date:

	 	100% of the Shares

The vesting schedule of this Agreement would result, assuming Continuous Service shall have
theretofore not terminated, in One Hundred Percent (100%) of the Restricted Shares being Vested
Shares at the end of the calendar month in which the second anniversary of the Vesting Measurement
Date falls. Shares that have not yet become vested are herein called “Unvested Shares.” In the
event Purchaser ceases his employment or service provider status
with the Company, all vesting shall cease unless otherwise determined by the Board of Directors.
Concurrent with the Service Termination Date, the Company shall have the option to repurchase (the
“Repurchase Option”) all or any portion of the Purchaser’s Unvested Shares.
Provided, however, that if the Purchaser’s Continuous Service ceases due to the
Purchaser’s death, the Restricted Shares that have not theretofore become Vested Shares will
immediately vest in full.

 

C-1

 

	 	6.	 	The fair market value at the time of transfer (determined without regard to any
restriction other than a restriction which by its terms will never lapse) of the property
with respect to which the election is being made:

$                     per share, which equals an aggregate fair market value of $                                        .

	 	7.	 	The amount paid for such property:

$                     per share, which equals an aggregate fair market value of $                                        .

There are enclosed herewith two copies of this written statement for filing. Please stamp the
third copy enclosed herewith as having been received and return it to the undersigned in the
enclosed, self-addressed, postage-paid envelope.

The undersigned has also submitted a copy of this statement to the person for whom the services
were performed.

If you have any questions or comments, or if any additional information is required, please do not
hesitate to contact:

	 	 	 	 	 
	 

	 	 
	 	 
	 	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 
	 

	 	(___) ____-________
	 	 

	 	 	 
	 
	 	 
	 	 	Very truly yours,
	 
	 	 
	 
	 	 
	 	 	 
	 

	 	(Signature)
	 
	 	 
	 
	 	 
	 	 	 
	 

	 	(Type or Print Name)

 

C-2

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