Document:

exv10w2

 

EXHIBIT 10.2

AMERICAN OIL & GAS, INC.

STOCK OPTION AGREEMENT

(Incentive Stock Option)

     THIS STOCK OPTION AGREEMENT (this “Agreement”) is made and entered into as of the 29th day of
June, 2006, by and between American Oil & Gas, Inc., a Nevada corporation (the “Company”), and
Joseph B. Feiten (the “Optionee”).

WITNESSETH:

     WHEREAS, pursuant to this Agreement, the Company grants to the Optionee an incentive stock
option to purchase shares of the Company’s common stock, par value $.001 per share (the “Common
Stock”), pursuant to the Company’s 2004 Stock Option Plan (the “Plan”) in order to provide the
Optionee with an opportunity for investment in the Company and additional incentive to pursue the
success of the Company, and this option is to be for the number of shares, at the price per share
and on the other terms and conditions set forth in this Agreement;

     WHEREAS, the Company intends that a portion of the stock option granted pursuant to this
Agreement qualify as an incentive stock option pursuant to Section 422 of the Internal Revenue Code
of 1986, as amended (the “Code”); and

     WHEREAS, the Optionee desires to receive an option on the terms and conditions set forth in
this Agreement,

     NOW, THEREFORE, the parties agree as follows:

     1. Grant Of Option. The Company hereby grants to the Optionee, as a matter of
separate agreement and not in lieu of salary or any other compensation for services, the right and
option (the “Option”) to purchase all or any part of an aggregate of 250,000 shares of the
authorized and unissued Common Stock (the “Option Shares”) pursuant to the terms and conditions set
forth in this Agreement.

     2. Option Price. At any time that shares are to be purchased pursuant to the Option,
the purchase price for each Option Share shall be $4.95 (the “Option Price”), subject to adjustment
as provided in this Agreement.

     3. Exercise Period. The right to acquire 50,000 Option Shares vests and becomes
exercisable on June 29, 2006. On each June 29 anniversary from June 29, 2007 through June 29, 2011,
the right to acquire 40,000 Option Shares shall vest and become exercisable. Unless terminated
earlier as provided in this Agreement, each portion of the Option will expire and terminate, if not
exercised sooner, at 5:00 p.m., Denver, Colorado time, on June 29, 2016, the tenth anniversary of
the date of grant.

 

 

     4. Exercise Of Option.

            (a) The Option may be exercised in whole or in part by delivering to the treasurer of the
Company (i) a Notice And Agreement Of Exercise Of Option, substantially in the form attached hereto
as Exhibit A, specifying the number of Option Shares with respect to which the Option is
exercised, and (ii) full payment of the Option Price for such shares. Payment shall be made by
certified check or cleared funds. The Option may not be exercised in part unless the purchase
price for the Option Shares purchased is at least $1,000 or unless the entire remaining portion of
the Option is being exercised.

            (b) Promptly upon receipt of the Notice And Agreement Of Exercise Of Option, together with the
full payment of the Option Price, the Company shall deliver to the Optionee a properly executed
certificate or certificates representing the Option Shares being purchased. The Company shall use
commercially reasonable efforts to have an effective registration statement under the 1933 Act (as
defined below) with the U.S. Securities and Exchange Commission covering the exercise by the
Optionee of the Option.

            (c) During the lifetime of the Optionee, the Option shall be exercisable only by the Optionee;
provided, that in the event of the death of the Optionee, the personal representative or estate of
the Optionee may exercise the Option; provided further, that in the event of legal disability of
the Optionee, the guardian or personal representative of the Optionee may exercise the Option if
such guardian or personal representative obtains a ruling from the Internal Revenue Service or an
opinion of counsel to the effect that neither the grant nor the exercise of such power is violative
of Section 422(b)(5), or its successor provision, of the Code. Any opinion of counsel must be
acceptable to the Company’s Board of Directors (the “Board”), or committee formed by the Board to
administer the Plan, both with respect to the counsel rendering the opinion and with respect to the
form of opinion.

            (d) If for any reason (other than the termination of the Optionee’s employment by the Company
because of the Optionee’s death or legal disability or the termination of the Optionee’s employment
by the Company for cause (as defined below)), the Optionee ceases to be employed by the Company,
then any Option held by the Optionee at the time the Optionee’s employment ceases may be exercised
within three months after the date the Optionee’s employment ceases or, if the Optionee dies during
the three-month period immediately following such termination, within one year after the Optionee’s
death, but, in each case, only to the extent that (i) the Option was exercisable according to its
terms on the date of termination of the Optionee’s employment, and (ii) the period for exercise of
the Option, as defined in Section 3 of this Agreement, has not terminated as of the date of
exercise. Upon termination of the respective periods set forth in the previous sentence, any
unexercised portion of the Option shall expire. If the Optionee’s employment by the Company is
terminated because of the Optionee’s death or legal disability, the Option held by the Optionee may
be exercised within one year after termination, but only to the extent that (i) the Option was
exercisable according to its terms on the date of termination of the Optionee’s employment, and
(ii) the period of exercise of the Option, as defined

 

 

in Section 3 of this Agreement, has not terminated as of the date of exercise. If the Optionee’s employment by the Company is terminated
for cause, (i) the Option held by the Optionee at the time the Optionee’s employment is terminated shall expire upon delivery to the Optionee of notice
of termination, which may be oral or in writing, and all rights to purchase shares pursuant to the
Option shall terminate immediately. As used in this Section 4(d), “for cause” means discharge by
the Company on any of the following grounds: (i) the Optionee’s conviction or plea of nolo
contendere in a court of law of any crime or offense, excluding traffic violations and other minor
offenses; (ii) willful misconduct which materially adversely affects the reputation or business
activities of the Company and which continues after written notice thereof from the Board to the
Optionee stating with specificity the alleged misconduct and, if requested by the Optionee within
ten days thereafter, the Optionee is afforded a reasonable opportunity to be heard before the
Board; (iii) substance abuse, including abuse of alcohol or use of illegal narcotics, and other
drugs or substances, for which the Optionee fails to undertake and maintain treatment after 15 days
after requested by the Company; (iv) misappropriation of funds or other material acts of dishonesty
involving the Company; and (v) the Optionee’s continued material failure or refusal to perform his
duties or to carry out in all material respects the lawful directives of the Board.

     5. Withholding Taxes. The Company may take such steps as it deems necessary or
appropriate for the withholding of any taxes which the Company is required by any law or regulation
or any governmental authority, whether federal, state or local, domestic or foreign, to withhold in
connection with the Option, including, but not limited to, the withholding of all or any portion of
any payment owed by the Company to the Optionee or the withholding of issuance of Option Shares to
be issued upon the exercise of the Option.

     6. Securities Laws Requirements. No Option Shares shall be issued unless and until,
in the opinion of the Company, there has been full compliance with, or an exemption from, any
applicable registration requirements of the Securities Act of 1933, as amended (the “1933 Act”),
any applicable listing requirements of any securities exchange on which stock of the same class has
been listed, and any other requirements of law or any regulatory bodies having jurisdiction over
such issuance and delivery, or applicable exemptions are available and have been complied with.
Pursuant to the terms of the Notice And Agreement Of Exercise Of Option (Exhibit A) that shall be
delivered to the Company upon each exercise of the Option, the Optionee shall acknowledge,
represent, warrant and agree, among other things, as follows:

     (a) The address set forth on the signature page to this Agreement is the
Optionee’s true and correct residence, and the Optionee has no present intention of
becoming a resident of any other state or jurisdiction;

     (b) The Optionee confirms that all documents, records and books pertaining to
an investment in the Option and the Option Shares that have been requested by the
Optionee have been made available or delivered to the Optionee. Without limiting
the foregoing, the Optionee has received and reviewed the Company’s periodic reports
as filed with the Securities and Exchange Commission, and the Optionee has had the
opportunity to discuss the acquisition

 

 

of the Option and the Option Shares with the
Company, and the Optionee has obtained or been given access to all information
concerning the Company that the Optionee has requested;

     (c) For two years subsequent to the exercise of any part or all of the Option,
the Optionee shall report all sales of Option Shares to the Company in writing on a
form prescribed by the Company.

     (d) If and so long as the Optionee is subject to reporting requirements under
Section 16(a) of the Securities Exchange Act of 1934, as amended (the “1934 Act”),
the Optionee shall (i) consult with the Optionee’s counsel regarding the application
of Section 16(b) of the 1934 Act prior to any exercise of the Option, and prior to
any sale of shares of the Company’s common stock or the Option Shares, (ii) furnish
the Company with a copy of each Form 4 filed by the Optionee, and (iii) timely file
all reports required under the federal securities laws.

     The restrictions described above, or notice thereof, may be placed on the certificates
representing the Option Shares purchased pursuant to the Option, and the Company may refuse to
issue the certificates or to transfer the shares on its books unless it is satisfied that no
violation of such restrictions will occur.

     7. Transferability Of Option. The Option shall not be transferable except by will or
the laws of descent and distribution, and any attempt to do so shall void the Option.

     8. Adjustment By Stock Split, Stock Dividend, Etc. If at any time the Company
increases or decreases the number of its outstanding shares of common stock, or changes in any way
the rights and privileges of such shares, by means of the payment of a stock dividend or the making
of any other distribution on such shares payable in its common stock, or through a stock split or
subdivision of shares, or a consolidation or combination of shares, or through a reclassification
or recapitalization involving its common stock, the numbers, rights and privileges of the shares of
common stock included in the Option shall be increased, decreased or changed in like manner as if
such shares had been issued and outstanding, fully paid and nonassessable at the time of such
occurrence. Whenever the number or kind of shares comprising the Option Shares or the Option Price
is adjusted, the Company shall promptly give written notice and a certificate of the Chief
Financial Officer or President of the Company to the Optionee, stating that such an adjustment has
been effected and setting forth the number and kind of shares purchasable and the amount of the
then-current Option Price, and stating in reasonable detail the facts requiring such adjustment and
the calculation of such adjustment.

 

 

     9. Effect Of Changes In Control And Certain Reorganizations.

     (a) In event of a Change In Control (as defined below) of the Company, then all Options
granted pursuant to this Agreement shall become exercisable immediately at the time of such Change
In Control, and, in addition, the Option Committee (as defined below), in its sole discretion,
shall have the right, but not the obligation, to do any or all of the following:

     (i) provide for the Optionee to surrender the Option (or portion thereof) and
to receive in exchange a cash payment, for each Option Share underlying the
surrendered Option, equal to the excess of the aggregate Fair Market Value (as
defined below) of the Option Share on the date of surrender over the exercise price
for the Option Share. To the extent any Option is surrendered pursuant to this
Section 9(a)(i), it shall be deemed to have been exercised for purposes of Section 4
of the Plan; and

     (ii) make any other adjustments, or take any other action, as the Option
Committee, in its discretion, shall deem appropriate provided that any such
adjustments or actions would not result in the Optionee receiving less value than
pursuant to Section 9(a)(i) above.

     For purposes of this Section 9, a “Change In Control” of the Company shall mean a change in
control of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A
of Regulation 14A promulgated under the 1934 Act regardless of whether the Company is then subject
to such reporting requirement.

     For purposes of this Section 9, the Fair Market Value of the Common Stock shall be determined
as follows: (i) if there is a public market for the Common Stock, the last reported sale price for
the Common Stock on that date (or on the preceding stock market business day if such date is a
Saturday, Sunday or a holiday), on the New York Stock Exchange (“NYSE”), the American Stock
Exchange (“AMEX”), or the Nasdaq Stock Exchange (“Nasdaq”), as reported by such exchange or market,
as the case may be, or, if not reported by such exchange or market, as reported in The Wall
Street Journal, or if not reported in The Wall Street Journal, as reported in The
Denver Post, Denver, Colorado or, if no last sale price for the NYSE, AMEX or Nasdaq is
available, then the last reported sale price on either another stock exchange or on a national or
local over-the-counter market, as reported by such exchange or market or, if not reported by such
exchange or market, as reported by The Wall Street Journal, or if not available there, in
The Denver Post; provided, that if no such published last sale price is available
and a published bid price is available from one of those sources, then Fair Market Value shall be
determined by such last reported bid price for the Common Stock, and if no such published bid price
is available, then Fair Market Value shall be determined by the average of the bid prices quoted as
of the close of business by any two (2) independent persons or entities making a market for the
Common Stock, such persons or entities to be selected by the Option Committee, or (i) if there is
no public market for the Common Stock, as determined by the unanimous resolution of all directors
of the Board; provided, that if the Board does not or is unable to make such a
determination, Fair Market Value

 

 

shall be made by an investment banking firm of recognized national
standing selected by the Board, which firm shall be engaged and paid by the Company and the
determination of Fair Market Value of such investment banking firm (or, if such investment bank
determines a range of fair market values, the mid-point of such range) shall be final and binding
on all parties.

     For purposes of this Agreement, “Option Committee” shall mean a committee composed of the
Board or by a committee selected by the Board, consisting of two (2) or more directors, each of
whom is a Non-Employee Director (as defined below).

     For purposes of this Agreement, a “Non-Employee Director” means a director of the Company who
(a) is not currently an officer of the Company or a parent or subsidiary of the Company, or
otherwise currently employed by the Company or a parent or subsidiary of the Company, (b) does not
receive compensation, either directly or indirectly, from the Company or a parent or subsidiary of
the Company, for services rendered as a consultant or in any capacity other than as a director,
except for an amount that does not exceed the dollar amount for which disclosure would be required
pursuant to Regulation S-K, Item 404(a), under the 1933 Act, (c) does not possess an interest in
any other transaction for which disclosure by the Company would be required pursuant to Regulation
S-K, Item 404(a), and (d) is not engaged in a business relationship for which disclosure by the
Company would be required pursuant to Regulation S-K, Item 404(a).

     (b) In the event that the Company enters into, or the Board shall propose that the Company
enter into, a Reorganization Event (as defined below), then all Options granted pursuant to this
Agreement shall become exercisable immediately at the time of such Reorganization Event, except
that this acceleration would not occur with respect to any of the Options for which the advance
would result in a violation of Section 17 of the Plan, and, in addition, the Option Committee, in
its sole discretion, may make any or all of the following adjustments:

     (i) by written notice to the Optionee provide that the Optionee’s Options shall
be terminated or cancelled, unless exercised within 30 days (or such longer period
as the Option Committee shall determine) after the date of such notice;

     (ii) provide for termination or cancellation of the Option in exchange for
payment to the Optionee of an amount in cash or securities equal to the excess, if
any, over the exercise price of that Option of the Fair Market Value of the Option
Shares subject to the Option at the time of such termination or cancellation; and

     (iii) make any other adjustments, or take any other action, as the Option
Committee, in its discretion, shall deem appropriate; provided, that any
such adjustments or actions shall not result in the Optionee receiving less value
than is possible pursuant to any or all of Sections 9(b)(i) and 9(b)(ii) above. Any
action taken by the Option Committee may be made conditional upon the consummation

 

 

of the applicable Reorganization Event.

     For purposes of this Section 9, a “Reorganization Event” shall be deemed to occur if (A) the
Company is merged or consolidated with another corporation, (B) one person becomes the beneficial
owner of all of the issued and outstanding equity securities of the Company (for purposes of this
Section 9(b), the terms “person” and “beneficial owner” shall have the meanings assigned to them in
Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder), (C) a division
or subsidiary of the Company is acquired by another corporation, person or entity, (D) all or
substantially all the assets of the Company are acquired by another corporation, or (E) the Company
is reorganized, dissolved or liquidated.

     10. Common Stock To Be Received Upon Exercise. The Optionee understands that in the
absence of registration of the Option Shares, the Option Shares cannot be sold unless they are sold
pursuant to an exemption from registration under the 1933 Act. The Optionee also understands that
routine sales of securities made in reliance upon Rule 144 can be made only in limited amounts in
accordance with the terms and conditions of the Rule, and that in cases in which the Rule is
inapplicable, compliance with another exemption under the 1933 Act will be required.

     11. Privilege Of Ownership. The Optionee shall not have any of the rights of a
stockholder with respect to the shares covered by the Option except to the extent that one or more
certificates for those shares shall be delivered to him upon exercise of the Option.

     12. Relationship To Employment Or Position. Nothing contained in this Agreement (i)
shall confer upon the Optionee any right with respect to continuance of the Optionee’s employment
by, or position or affiliation with, or relationship to, the Company, or (ii) shall interfere in
any way with the right of the Company at any time to terminate the Optionee’s employment by,
position or affiliation with, or relationship to, the Company.

     13. Notices. All notices, requests, demands, directions and other communications
(“Notices”) concerning this Agreement shall be in writing and shall be mailed or delivered
personally or sent by telecopier or facsimile to the applicable party at the address of such party
set forth below in this Section 13. When mailed, each such Notice shall be sent by first class,
certified mail, return receipt requested, enclosed in a postage prepaid wrapper, and shall be
effective on the fifth business day after it has been deposited in the mail. When delivered
personally, each such Notice shall be effective when delivered to the address for the respective
party set forth in this Section 13, provided that it is delivered on a business day and further
provided that it is delivered prior to 5:00 p.m., local time of the party to whom the notice is
being delivered, on that business day; otherwise, each such Notice shall be effective on the first
business day occurring after the date on which the Notice is delivered. When sent by telecopier or
facsimile, each such Notice shall be effective on the day on which it is sent provided that it is
sent on a business day and further provided that it is sent prior to 5:00 p.m., local time of the
party to whom the Notice is being sent, on that business day; otherwise, each such Notice shall be
effective on the first business day occurring after the date on which the Notice is sent. Each
Notice shall be addressed to the party to be notified as shown below:

 

 

	 	 	 	 	 
	(a)

	 	if to the Company:
	 	American Oil & Gas, Inc.
	 

	 	 	 	1050 17th Street, Suite 2400
	 

	 	 	 	Denver, Colorado 80265
	 

	 	 	 	Facsimile No. (303) 595-0709
	 

	 	 	 	Attention: Mr. Andrew P. Calerich
	 
	 	 	 	 
	(b)

	 	if to the Optionee:
	 	Joseph B. Feiten
	 

	 	 	 	At the address set forth on the signature page of
	 

	 	 	 	this Agreement

     Either party may change its respective address for purposes of this Section 13 by giving the
other party Notice of the new address in the manner set forth above.

     14. General Provisions. This instrument (a) contains the entire agreement between the
parties, (b) may not be amended nor may any rights hereunder be waived except by an instrument in
writing signed by the party sought to be charged with such amendment or waiver, (c) shall be
construed in accordance with, and governed by and determined exclusively and solely in accordance
with the laws of Nevada, and (d) shall be binding upon and shall inure to the benefit of the
parties and their respective personal representatives and assigns, except as above set forth. All
pronouns contained herein and any variations thereof shall be deemed to refer to the masculine,
feminine or neuter, singular or plural as the identity of the parties hereto may require.

*****

(signature page follows)

 

 

     IN WITNESS WHEREOF, the parties have executed this Agreement on the dates set forth below to
be effective on the date set forth in the first paragraph of this Agreement.

	 	 	 	 	 
	 	AMERICAN OIL & GAS, INC.

 	 
	Date:      7/31/06            	By:  	/s/ Andrew P. Calerich
 	 
	 	 	Andrew P. Calerich, President 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	OPTIONEE

 	 
	Date:       7/31/06            	/s/ Joseph B. Feiten
 	 
	 	Joseph B. Feiten 	 
	 	 	 
	 

	 	 	 	 	 
	 	
 	 
	 	Address 	 
	 	 	 
	 

	 	 	 	 	 
	 	
 	 
	 	City, State and Zip Code 	 
	 	 	 
	 

 

 

EXHIBIT A

(To American Oil & Gas, Inc.

Stock Option Agreement)

AMERICAN OIL & GAS, INC.

NOTICE AND AGREEMENT OF EXERCISE OF OPTION

     The undersigned, Joseph B. Feiten (the “Optionee”) hereby exercises the Optionee’s stock
Option pursuant to the Stock Option Agreement (the “Option Agreement”) dated as of June 29, 2006
between Optionee and American Oil & Gas, Inc. (the “Company”) as to ___shares of the $.001
par value common stock (the “Option Shares”) of the Company at a purchase price of $4.95 per share.
The total exercise price for these Option Shares is $___.

     Enclosed is the payment specified in Section 4 of the Option Agreement.

     Optionee understands that no Option Shares will be issued unless and until, in the opinion of
the Company, there has been full compliance with any applicable registration requirements of the
Securities Act of 1933, as amended (the “1933 Act”), any applicable listing requirements of any
securities exchange on which stock of the same class is then listed, and any other requirements of
law or any regulatory bodies having jurisdiction over such issuance and delivery. Optionee hereby
acknowledges, represents, warrants and agrees to and with the Company as follows:

            (a) The address set forth on the signature page of this Agreement is the
Optionee’s true and correct residence, and the Optionee has no
present intention of becoming a resident of any other state or jurisdiction;

            (b) The Optionee confirms that all documents, records and books pertaining to
an investment in the Option and the Option Shares that have been requested by the
Optionee have been made available or delivered to the Optionee. Without limiting
the foregoing, the Optionee has received and reviewed the Company’s periodic reports
as filed with the Securities and Exchange Commission, and the Optionee has had the
opportunity to discuss the acquisition of the Option and Option Shares with the
Company, and the Optionee has obtained or been given access to all information
concerning the Company that the Optionee has requested;

            (c) For two years subsequent to the exercise of any part or all of the Option,
the Optionee shall report all sales of Option Shares to the Company in writing on a
form prescribed by the Company;

            (d) If and so long as Optionee is subject to reporting requirements under
Section 16(a) of the Securities Exchange Act of 1934, as amended (the “1934 Act”),
Optionee shall (i) consult with Optionee’s counsel regarding the application of

 

 

Section 16(b) of the 1934 Act prior to any exercise of the Option, and prior to any
sale of shares of the Company’s common stock or the Option Shares, (ii) furnish the
Company with a copy of each Form 4 filed by Optionee, (iii) and timely file all
reports required to file under the federal securities laws.

     The restrictions described above, or notice thereof, may be placed on the certificates
representing the Option Shares purchased pursuant to the Option, and the Company may refuse to
issue the certificates or to transfer the shares on its books unless it is satisfied that no
violation of such restrictions will occur.

	 	 	 
	 
	 	 
	 

	 	 
	(Print Your Name)

	 	Signature
	 
	 	 
	 
	 	 
	 

	 	 
	(Optionee — Print Name of Spouse

	 	Address
	if you wish joint registration)
	 	 
	 

	 	 
	 

	 	City, State and Zip CodeQuickLinks
 -- Click here to rapidly navigate through this document
  

Exhibit 10.17  

 
 

EXECUTIVE EMPLOYMENT AGREEMENT    
    

        THIS EXECUTIVE EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of July 19, 2006 (the
"Effective Date"), by and between Ascent Solar Technologies, Inc., a Delaware corporation (the
"Company"), and Prem Nath (the "Executive"). 

RECITALS  

        A.    The Company desires to employ and retain the unique experience, abilities, and services of the Executive as Senior Vice
President of Manufacturing. 

        B.    The Executive agrees to perform the services of Senior Vice President of Manufacturing for the Company in accordance with
the terms and conditions of this Agreement. 

AGREEMENT  

        NOW, THEREFORE, in consideration of the respective covenants and agreements of the parties contained in this Agreement, the Company and Executive agree as
follows: 

        1.     Term. The term of this Agreement is for three (3) years, commencing
on July 31st, 2006 (the "Start Date"), unless amended by agreement of the parties or terminated as set forth in Section 5. 

        2.     Duties. The Executive will devote his full business time, energies and
best efforts to the promotion of the business and affairs of the Company, with responsibility to perform such duties as are specified from time to time by the Board of Directors of the Company (the
"Board") and/or the chief executive officer of the Company (the "CEO"). 

        3.     Compensation.  

        a)    Base Compensation. In consideration of all services to be rendered by the Executive to the Company, the Company will pay to the
Executive the base
salary of $160,000 per year from the Start Date through the termination of this Agreement and any extensions of it ("Base Salary"), payable in
accordance with the Company's standard payroll practices. 

        b)    Bonus Compensation. As further compensation, the Company may pay to the Executive an annual bonus of up to thirty percent
(30%) of Base Salary, at such times and in such amounts as the Board and its Compensation Committee may determine in their discretion based on the Executive's individual performance; 

        c)     Equity Compensation. As further compensation, upon approval by the Compensation Committee of the Board, on or after the
Start Date, the Company will grant the Executive options to purchase up to 100,000 shares of the Company's common stock, vesting in co-equal amounts (to the extent possible) over three
(3) years from the date of grant, at an exercise price equal to the closing price of the Company's common stock on the Nasdaq Capital Market on the date of grant. The options shall be governed
by and issued under the Company's 2005 Stock Option Plan. 

        d)    Vacation. The Executive will receive four (4) weeks of paid vacation for each contract year of this Agreement,
commencing on the Start Date. Vacation will be prorated in the event of termination pursuant to Section 5. The Executive will not be entitled to carry over accrued but unused vacation from one
contract year to the next. 

        e)     Relocation Expenses. The Company will reimburse the Executive for all reasonable and documented moving expenses (including
taxes paid by the Executive as part of receiving such reimbursement) incurred in connection with the relocation of the Executive and his immediate 

1

 

family
members to Littleton, Colorado or its environs. In connection with such relocation, the Company also will provide the Executive with a three bedroom townhome or residence in Littleton, Colorado
or its environs for temporary housing for up to six (6) months so as to accommodate the Executive's plans to rent or sell his current residence in Michigan. 

        f)     Benefit Plans. To the extent permitted by law and except as otherwise may be determined by the Board, the Executive will
be eligible to participate in the Company's standard benefit plans according to plan provisions. 

        4.     Confidential Information.  

         a)    Company Information. Executive agrees at all times during the term of his employment and thereafter, to hold in strictest confidence,
 and not to
use, except for the benefit of the Company, or to disclose to any person, firm or corporation without written authorization of the Board of Directors of the Company, any Confidential Information (as
defined below) of the Company. For purposes of this Agreement "Confidential Information" is defined as any Company proprietary information, technical
data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, customer lists and customers, markets, software, developments, inventions,
processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances or other business information disclosed to Executive by the Company either
directly or indirectly in writing, orally or by drawings or observation of parts or equipment. Confidential Information does not include any of the foregoing items which has become publicly known and
made generally available through no wrongful act of Executive or of others who were under confidentiality obligations as to the item or items involved. 

        b)    Former Employer Information. Executive agrees that he will not, during his employment with the Company, improperly use or
disclose any proprietary information or trade secrets of any former or concurrent employer or other person or entity and that he will not bring onto the premises of the Company any unpublished
document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity. 

        c)     Third Party Information. Executive recognizes that the Company has received and in the future will receive from third
parties their confidential or proprietary information subject to a duty on the Company's part to maintain the confidentiality of such information and to use it only for certain limited purposes.
Executive agrees to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as
necessary in carrying out his work for the Company consistent with the Company's agreement with such third party. 

        5.     Termination of Employment.  

         a)    Termination for Cause. Notwithstanding any provision contained in this Agreement to the contrary, the Company may immediately
terminate this
Agreement for Cause (as defined below) without giving notice or compensation to the Executive. For purposes of this Agreement "Cause" includes but is
not limited to the following: (i) the conviction of the Executive or a pleading of guilty or nolo contendere to any felony or misdemeanor, or any
crime involving moral turpitude, (ii) a material breach by Executive of his obligations under this Agreement, which will include a failure to perform such duties as are reasonably assigned to
the Executive by the Board, (iii) any act by Executive of disloyalty to the Company, or (iv) any violation of Executive's fiduciary duties to the Company. 

        b)    Termination Without Cause. Either the Company or the Executive may terminate this Agreement without Cause on giving not
less than 30 days' prior written notice to the other party. 

2

 

        c)     Disability. Unless prohibited by applicable law, this Agreement may be terminated if the Executive suffers a Permanent
Disability (as defined below). For purposes of this Agreement, "Permanent Disability" is defined as the Executive's inability, due to illness, accident,
or other cause, to perform the majority of his usual duties for a period of three (3) months or more despite reasonable accommodation by the Company. 

        d)    Death. If the Executive dies, this Agreement will automatically terminate. 

        6.     Compensation Upon Termination.  

         a)    Termination for Cause. If the Executive is terminated for Cause pursuant to Section 5(a), the Company will pay the Executive
only his Base
Salary accrued through the date of termination. 

        b)    Termination Without Cause. If the Executive is terminated without Cause pursuant to Section 5(b), the Company will
pay the Executive his Base Salary for a period of twelve (12) months after the date of termination. 

        c)     Disability. During any period that the Executive fails to perform his duties and responsibilities hereunder as a result of
incapacity due to physical or mental illness, the Executive will continue to receive his Base Salary until the Executive's employment is terminated pursuant to Section 5(c) and thereafter the
Executive will receive any disability insurance benefits to which the Executive is entitled. 

        d)    Death. If this Agreement terminates due to the death of the Executive, then any interests that the Executive may have
under the provisions of this Agreement will be payable to the Executive's estate inclusive of Base Salary provided for in this Agreement as if the Executive terminated his employment without Cause. 

        7.     Board Approval. No part of this Agreement will be effective or binding
upon the parties unless and until approved or ratified by the Compensation Committee of the Board. 

        8.     Successors. The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it if no such succession had taken place. 

        9.     Arbitration. Any dispute or controversy arising under or in connection
with this Agreement will be settled exclusively by arbitration in Denver, Colorado, in accordance with the rules of the American Arbitration Association then in effect by an arbitrator selected by
both parties within 10 days after either party has notified the other in writing that it desires a dispute between them to be settled by arbitration. In the event the parties cannot agree on
such arbitrator within such 10-day period, each party will select an arbitrator and inform the other party in writing of such arbitrator's name and address within 5 days after the
end of such 10-day period and the two arbitrators so selected will select a third arbitrator within 15 days thereafter; provided, however, that in the event of a failure by either
party to select an arbitrator and notify the other party of such selection within the time period provided above, the arbitrator selected by the other party will be the sole arbitrator of the dispute.
Each party will pay its own expenses associated with such arbitration, including the expense of any arbitrator selected by such party and the Company will pay the expenses of the jointly selected
arbitrator. The decision of the arbitrator or a majority of the panel of arbitrators will be binding upon the parties and judgment in accordance with that decision may be entered in any court having
jurisdiction thereover. Punitive damages will not be awarded. 

        10.   Absence of Conflict. The Executive represents and warrants that his
employment by the Company as described herein will not conflict with and will not be constrained by any prior employment or consulting agreement or relationship. 

3

 

        11.   Assignment. This Agreement and all rights under this Agreement will be
binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective personal or legal representatives, executors, administrators, heirs, distributees, devisees,
legatees, successors and assigns. This Agreement is personal in nature, and neither of the parties to this Agreement will, without the written consent of the other, assign or transfer this Agreement
or any right or obligation under this Agreement to any other person or entity; except that the Company may assign this Agreement to any of its affiliates or wholly-owned subsidiaries, provided, that
such assignment will not relieve the Company of its obligations hereunder. 

        12.   Integration. This Agreement represents the entire agreement and
understanding between the parties as to the subject matter hereof and supersede all prior or contemporaneous agreements whether written or oral. No waiver, alteration, or modification of any of the
provisions of this Agreement will be binding unless in writing and signed by duly authorized representatives of the parties hereto. 

        13.   Waiver. Failure or delay on the part of either party hereto to enforce
any right, power, or privilege hereunder will not be deemed to constitute a waiver thereof. Additionally, a waiver by either party or a breach of any promise hereof by the other party will not operate
as or be construed to constitute a waiver of any subsequent waiver by such other party. 

        14.   Severability. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable
law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 

        15.   Headings. The headings of the paragraphs contained in this Agreement are
for reference purposes only and will not in any way affect the meaning or interpretation of any provision of this Agreement. 

        16.   Applicable Law. This Agreement will be governed by and construed in
accordance with the internal substantive laws, and not the choice of law rules, of the State of Colorado. 

        17.   Counterparts. This Agreement may be executed in one or more counterparts,
none of which need contain the signature of more than one party hereto, and each of which will be deemed to be an original, and all of which together will constitute a single agreement. 

[signature page follows]

4

 

        IN
WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the Effective Date. 

	
COMPANY:	
 	

ASCENT SOLAR TECHNOLOGIES, INC.
	

 	
 	

By:	
 	

	

 	
 	

Name:	
 	

	

 	
 	

Title:	
 	

	
EXECUTIVE:	
 	

 	
 	

 
	

 	
 	

 Prem Nath

5

QuickLinks

EXECUTIVE EMPLOYMENT AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]