Document:

Unassociated Document

    DISTRIBUTION
      AGREEMENT

    

    THIS
      AGREEMENT
      is made
      May 15, 2006 between SOL INC., a Florida corporation, its successors and assigns
      (“Seller”) and Solar Night Industries, a Nevada corporation, its successors and
      assigns (“Distributor”).

    

    WITNESSETH:

    

    WHEREAS,
      Seller
      is a designer and producer of solar powered landscape lights (hereinafter called
      the “Products”); and

    

    WHEREAS,
      Distributor desires to act as distributor of the Products, upon the terms and
      conditions hereinafter set forth.

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual agreements hereinafter contained, it is hereby
      agreed by the parties hereto, as follows:

    

    	1.  	
            Grant
              of Exclusivity:
              Seller grants to Distributor the exclusive right to buy or represent
              the
              Products in the US on its web site and the following sales
              channels:

          

    

    See
      Schedule “A”

    

    
      	                           2. 
              	
              Term:
                Beginning the date hereof and in effect for one year, unless cancelled
                earlier as herein provided or extended by agreement in writing. Automatic
                renewal of this Agreement for one year occurs if during this term
                Seller
                receives purchase orders from Distributor in excess of
                $250,000.

            

    

    

    3. Seller’s
      Obligations:

    

    a. Seller
      shall in good faith fill the purchase orders of Distributor and make shipments
      in accordance with payment terms.

    

    b. Seller
      shall provide Distributor with marketing materials, and training, as requested,
      at its office in Palm City, Florida.

    

    c.
       Distributor
      shall be entitled to buy the Products from Seller at not less than retail prices
      less 20%. Distributor can establish the selling price to his customer. Seller’s
      warranty shall apply to all purchases by Distributor.

    

    d. Under
      no
      circumstances shall Seller be liable for any loss, or expense to Distributor,
      or
      anyone claiming through Distributor, beyond the limit of liability in the
      liability insurance coverage held by Seller. Seller shall not be liable for
      indirect, incidental, punitive or exemplary, special or consequential damages
      sustained by Distributor as a result of any breach of this Agreement or
      otherwise relating to this Agreement or for Seller’s alleged negligence, or for
      any claim made against Distributor by any other party.

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    e. Seller
      agrees not to interfere with the relationships between Distributor and its
      customers. Notwithstanding the preceding, Seller reserves the right, and
      Distributor consents to having Seller communicate with Distributor’s customers,
      or prospective customers. Seller shall notify Distributor in advance of such
      contacts.

    

    4. Distributor’s
      Obligations:

    

    a. Distributor
      shall not sell any products which compete with Seller’s Products, including, but
      not limited to, flood lights, street and parking lot lights, sign and billboard
      lights, transit lights, indoor lighting kits, flashers or any similar products
      operated by solar energy, during the duration of the Agreement and its extension
      and for six months thereafter.

    

    b. Distributor
      shall use its best efforts to promote the sale and use of the Products.
      Distributor shall conduct its business not to reflect negatively upon the
      reputation of Seller or its Products. It shall always be truthful in
      representing the Products. It shall notify Seller of any problems with the
      Products. It shall inform Seller of any new product opportunities.

    

    c. Distributor
      agrees to provide Seller monthly reports including (1) progress with
“Prospects”, (2) new Prospects, (3) reports on competition, (4) sales forecasts.
      Distributor agrees to respond to Seller’s requests for added
      information.

    

    	d.  	
            Distributor
              will be responsible for post-installation service, including stocking
              of
              spare parts. Labor to replace parts under warranty shall be at no cost
              to
              SOL.

          

    

    5. Ownership
      and Proprietary Rights:

    

    a. Any
      trademarks, trade names, Internet site, or identifying slogans affixed to the
      Products or any accompanying labels, containers and cartons, whether or not
      registered, constitute the exclusive property of Seller and cannot be used
      except in connection with promoting and selling the Products and as approved
      in
      advance in writing, and provided by Seller. Upon termination of this Agreement,
      Distributor shall have no further right to use or affix any such trademarks,
      trade names or identifying slogans.

    

    b. Distributor
      acknowledges that the products and any items of information provided by Seller
      and designated as confidential or proprietary, including designs, drawings,
      specifications, data sheets, technical bulletins, and service manuals,
      (hereinafter, the “Confidential Information”) constitute valuable trade secrets
      and proprietary information of Seller. Distributor agrees that it shall hold
      the
      Confidential Information in strict confidence and not divulge it to any other
      person or entity without the prior written permission of Seller. All Products
      sold by Distributor shall bear the trademarks of Seller, which shall not be
      removed by Distributor. Distributor agrees that in the event of a breach or
      threatened breach of this covenant, Seller will suffer irreparable injury for
      which monetary damages may not adequately compensate Seller. As a result, an
      injunction may be issues restraining such Distributor action. Such remedies
      shall be in addition to any others.

    

    
      
         

      

      
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    c. Distributor
      acknowledges that any patents, including, but not limited to, U.S. Patent No.
      5,149,188 for the “Solar Powered Exterior Lighting Systems” , No. 5,107,637 for
“Transit Shelter with Self-Contained Illumination System”, No. 404,842 for
“Solar Powered Lighting Fixture” , No. 424,729 for “Solar Powered Lighting
      Unit”, or other industrial or intellectual proprietary rights relating to the
      Products or any improvements thereon, are the sole and exclusive property of
      Seller.

    

    6. Termination:

    

    a. This
      Agreement may be terminated by Seller, upon giving Distributor 15 days written
      notice, should Distributor commit or permit any other breach of this Agreement
      and Distributor fails to cure such breach within 30 days after written notice.
      If Distributor breaches its covenant of non-competition or the confidentiality
      provision, or if its conduct or actions can only be reasonably interpreted
      as
      damaging to Seller, then this Agreement shall immediately terminate.
      Notwithstanding, Distributor shall have the right to receive orders in process,
      and Seller agrees to ship, provided payment has been received.

    

    b. This
      Agreement may be terminated by Distributor should Seller commit or permit any
      breach of this Agreement with regard to Seller’s performance hereunder, and
      Seller fails to cure such breach within 30 days after written notice to Seller.
      If Seller fails to cure the breach, Distributor shall have the option, in its
      sole discretion, to terminate this Agreement.

    

    c. Notice
      of
      Termination shall be by Registered Express Mail.

    

    d. Seller
      warranties shall not cease upon termination. Seller may continue a non-exclusive
      business relationship and will provide spare parts.

    

    7. Indemnification:
      Each of
      Seller and Distributor agrees to indemnify, defend and hold the other harmless
      from and against all liability, claim, injury, loss or expense, including
      reasonable attorneys’ fees, arising out of any breach of this Agreement by
      Seller or Distributor, as the case may be.

    

    8. Miscellaneous:

    

    a. This
      Agreement may not be changed, modified, waived, or amended unless agreed to
      in
      writing signed by both parties hereto.

    

    
      
         

      

      
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    b. The
      validity and performance of this Agreement shall be governed by the laws of
      the
      United States and the State of Florida. Service may be made by first-class
      mail,
      certified, to Distributor’s address as it last appears on the records of Seller.
      The prevailing party shall be entitled to its attorneys’ fees and costs, in
      addition to any other relief. Breach of this Agreement shall entitle Seller
      to
      immediate injunctive relief in addition to any other relief.

    

    c. This
      Agreement contains the entire understanding of the parties as to the subjects
      herein and shall be binding on, and inure to the benefit of the parties to
      it
      and their legal representatives, successors and permitted assigns. Distributor
      may not transfer this Agreement without the prior written consent of the Seller,
      which shall not be unreasonably withheld.

    

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

     

     

    
      	 	Seller:
	 	SOL INC 
	 	 
	Witness:	 
	______________________________________________ 	By:
              __________________________________________________ 
	 	    Kai
              Wenk-Wolff,
              CEO
	 	 
	 	
              Distributor:

              Solar
                Nights Industries, Inc. 

            
	 	 
	 	 
	 	By:
              __________________________________________________ 
	 	 
	Witness:	 
	______________________________________________  	Name:
              ________________________________________________ 
	 	 

    

    

    

     

    
      
         

      

      
        4Unassociated Document

    SOLAR
      NIGHT INDUSTRIES, INC.

    2006
      INCENTIVE STOCK OPTION PLAN

    FORM
      OF STOCK OPTION AGREEMENT

    

    1. Grant
      Of Option.

    

    (a) Option.
      On the
      terms and conditions set forth in the Notice of Stock Option Grant and this
      Agreement, the Company grants to the Optionee on the Date of Grant the option
      to
      purchase at the Exercise Price the number of Shares set forth in the Notice
      of
      Stock Option Grant. The Exercise Price is agreed to be at least 100% of the
      Fair
      Market Value per Share on the Date of Grant (110% of Fair Market Value if
      Section 3(b) of the Plan applies). This option is intended to be an ISO or
      a
      Nonstatutory Option, as provided in the Notice of Stock Option Grant.

    

    (b) Stock
      Option Plan and Defined Terms.
      This
      option is granted pursuant to the Plan, a copy of which the Optionee
      acknowledges having received. The provisions of the Plan are incorporated into
      this Agreement by this reference. Capitalized terms are defined in
      Section 14 of this Agreement.

    

    2. Right
      To Exercise.

    

    (a) Exercisability.
      Subject
      to Subsections (b) and (c) below and the other conditions set forth in this
      Agreement, all or part of this option may be exercised prior to its expiration
      at the time or times set forth in the Notice of Stock Option Grant. This option
      shall become exercisable in full if the Company is subject to a Change in
      Control before the Optionee’s Service terminates and (ii) the surviving
      corporation or its parent does not substitute an option with substantially
      the
      same terms for this option.

    

    (b) $100,000
      Limitation.
      If this
      option is designated as an ISO in the Notice of Stock Option Grant, then the
      Optionee’s right to exercise this option shall be deferred to the extent (and
      only to the extent) that this option otherwise would not be treated as an ISO
      by
      reason of the $100,000 annual limitation under Section 422(d) of the Code,
      except that:

    

    
      	 	
              (i)

            	
              The
                Optionee’s right to exercise this option shall in any event become
                exercisable at least as rapidly as 20% per year over the five-year
                period
                commencing on the Date of Grant, unless the Optionee is an officer
                of the
                Company, an Outside Director or a Consultant;
                and

            

    

    

    
      	 	
              (ii)

            	
              The
                Optionee’s right to exercise this option shall no longer be deferred if
                (A) the Company is subject to a Change in Control before the
                Optionee’s Service terminates, (B) this option does not remain
                outstanding, (C) this option is not assumed by the surviving
                corporation or its parent and (D) the surviving corporation or its
                parent does not substitute an option with substantially the same
                terms for
                this option.

            

    

     

    
 

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    (c) Stockholder
      Approval.
      Any
      other provision of this Agreement notwithstanding, no portion of this option
      shall be exercisable at any time prior to the approval of the Plan by the
      Company’s stockholders.

    

    3. No
      Transfer Or Assignment Of Option.

    

    Except
      as
      otherwise provided in this Agreement, this option and the rights and privileges
      conferred hereby shall not be sold, pledged or otherwise transferred (whether
      by
      operation of law or otherwise) and shall not be subject to sale under execution,
      attachment, levy or similar process.

    

    4. Exercise
      Procedures.

    

    (a) Notice
      of Exercise.
      The
      Optionee or the Optionee’s representative may exercise this option by giving
      written notice to the Company pursuant to Section 13(c). The notice shall
      specify the election to exercise this option, the number of Shares for which
      it
      is being exercised and the form of payment. The notice shall be signed by the
      person exercising this option. In the event that this option is being exercised
      by the representative of the Optionee, the notice shall be accompanied by proof
      (satisfactory to the Company) of the representative’s right to exercise this
      option. The Optionee or the Optionee’s representative shall deliver to the
      Company, at the time of giving the notice, payment in a form permissible under
      Section 5 for the full amount of the Purchase Price.

    

    (b) Issuance
      of Shares.
      After
      receiving a proper notice of exercise, the Company shall cause to be issued
      a
      certificate or certificates for the Shares as to which this option has been
      exercised, registered in the name of the person exercising this option (or
      in
      the names of such person and his or her spouse as community property or as
      joint
      tenants with right of survivorship). The Company shall cause such certificate
      or
      certificates to be deposited in escrow or delivered to or upon the order of
      the
      person exercising this option.

    

    (c) Withholding
      Taxes.
      In the
      event that the Company determines that it is required to withhold any tax as
      a
      result of the exercise of this option, the Optionee, as a condition to the
      exercise of this option, shall make arrangements satisfactory to the Company
      to
      enable it to satisfy all withholding requirements. The Optionee shall also
      make
      arrangements satisfactory to the Company to enable it to satisfy any withholding
      requirements that may arise in connection with the vesting or disposition of
      Shares purchased by exercising this option.

    

    5. Payment
      For Stock.

    

    (a) Cash.
      All or
      part of the Purchase Price may be paid in cash or cash equivalents.

    

    (b) Surrender
      of Stock.
      All or
      any part of the Purchase Price may be paid by surrendering, or attesting to
      the
      ownership of, Shares that are already owned by the Optionee. Such Shares shall
      be surrendered to the Company in good form for transfer and shall be valued
      at
      their Fair Market Value on the date when this option is exercised. The Optionee
      shall not surrender, or attest to the ownership of, Shares in payment of the
      Purchase Price if such action would cause the Company to recognize compensation
      expense (or additional compensation expense) with respect to this option for
      financial reporting purposes.

    

    
      
         

      

      
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    (c) Exercise/Sale.
      If Stock
      is publicly traded, all or part of the Purchase Price and any withholding taxes
      may be paid by the delivery (on a form prescribed by the Company) of an
      irrevocable direction to a securities broker approved by the Company to sell
      Shares and to deliver all or part of the sales proceeds to the
      Company.

    

    (d) Exercise/Pledge.
      If Stock
      is publicly traded, all or part of the Purchase Price and any withholding taxes
      may be paid by the delivery (on a form prescribed by the Company) of an
      irrevocable direction to pledge Shares to a securities broker or lender approved
      by the Company, as security for a loan, and to deliver all or part of the loan
      proceeds to the Company.

    

    (e) Promissory
      Note.
      With the
      consent of the Board of Directors, all or part of the Purchase Price may be
      paid
      with a full-recourse promissory note. However, the par value of the Shares,
      if
      newly issued, shall be paid in cash or cash equivalents. The Shares shall be
      pledged as security for payment of the principal amount of the promissory note
      and interest thereon. The interest rate payable under the terms of the
      promissory note shall not be less than the minimum rate (if any) required to
      avoid the imputation of additional interest under the Code. Subject to the
      foregoing, the Board of Directors (at its sole discretion) shall specify the
      term, interest rate, amortization requirements (if any) and other provisions
      of
      such note.

    

    6. Term
      And Expiration.

    

    (a) Basic
      Term.
      This
      option shall in any event expire on the expiration date set forth in the Notice
      of Stock Option Grant, which date is 10 years after the Date of Grant (five
      years after the Date of Grant if this option is designated as an ISO in the
      Notice of Stock Option Grant and Section 3(b) of the Plan applies).

    

    (b) Termination
      of Service (Except by Death). If the Optionee’s Service terminates for any
      reason other than death, then this option shall expire on the earliest of the
      following occasions:

    

    (i) The
      expiration date determined pursuant to Subsection (a) above;

    

    
      	 	
              (ii)

            	
              The
                date of the termination of the Optionee’s Service for any reason other
                than death; or

            

    

    

    
      	 	
              (iii)

            	
              The
                date 12 months after the termination of the Optionee’s Service by reason
                of death.

            

    

    

    The
      Optionee may exercise all or part of this option at any time before its
      expiration under the preceding sentence, but only to the extent that this option
      had become exercisable before the Optionee’s Service terminated. When the
      Optionee’s Service terminates, this option shall expire immediately with respect
      to the number of Shares for which this option is not yet exercisable and with
      respect to any Restricted Shares. In the event that the Optionee dies after
      termination of Service but before the expiration of this option, all or part
      of
      this option may be exercised (prior to expiration) by the executors or
      administrators of the Optionee’s estate or by any person who has acquired this
      option directly from the Optionee by beneficiary designation, bequest or
      inheritance, but only to the extent that this option had become exercisable
      before the Optionee’s Service terminated.

    

    
      
         

      

      
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    (c) Death
      of the Optionee.
      If the
      Optionee dies while in Service, then this option shall expire on the earlier
      of
      the following dates:

    

    (i) The
      expiration date determined pursuant to Subsection (a) above;
      or

    

    (ii) The
      date
      12 months after the Optionee’s death.

    

    All
      or
      part of this option may be exercised at any time before its expiration under
      the
      preceding sentence by the executors or administrators of the Optionee’s estate
      or by any person who has acquired this option directly from the Optionee by
      beneficiary designation, bequest or inheritance, but only to the extent that
      this option had become exercisable before the Optionee’s death. When the
      Optionee dies, this option shall expire immediately with respect to the number
      of Shares for which this option is not yet exercisable and with respect to
      any
      Restricted Shares. 

    

    (d) Leaves
      of Absence.
      For any
      purpose under this Agreement, Service shall be deemed to continue while the
      Optionee is on a bona fide leave of absence, if such leave was approved by
      the
      Company in writing and if continued crediting of Service for such purpose is
      expressly required by the terms of such leave or by applicable law (as
      determined by the Company).

    

    7. Right
      of First Refusal.

    

    (a) Right
      of First Refusal.
      In the
      event that the Optionee proposes to sell, pledge or otherwise transfer to a
      third party any Shares acquired under this Agreement, or any interest in such
      Shares, the Company shall have the Right of First Refusal with respect to all
      (and not less than all) of such Shares. If the Optionee desires to transfer
      Shares acquired under this Agreement, the Optionee shall give a written Transfer
      Notice to the Company describing fully the proposed transfer, including the
      number of Shares proposed to be transferred, the proposed transfer price, the
      name and address of the proposed Transferee and proof satisfactory to the
      Company that the proposed sale or transfer will not violate any applicable
      federal or state securities laws. The Transfer Notice shall be signed both
      by
      the Optionee and by the proposed Transferee and must constitute a binding
      commitment of both parties to the transfer of the Shares. The Company shall
      have
      the right to purchase all, and not less than all, of the Shares on the terms
      of
      the proposal described in the Transfer Notice (subject, however, to any change
      in such terms permitted under Subsection (b) below) by delivery of a notice
      of exercise of the Right of First Refusal within 30 days after the date when
      the
      Transfer Notice was received by the Company. The Company’s rights under this
      Subsection (a) shall be freely assignable, in whole or in
      part.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (b) Transfer
      of Shares.
      If the
      Company fails to exercise its Right of First Refusal within 30 days after
      the date when it received the Transfer Notice, the Optionee may, not later
      than
      90 days following receipt of the Transfer Notice by the Company, conclude a
      transfer of the Shares subject to the Transfer Notice on the terms and
      conditions described in the Transfer Notice, provided that any such sale is
      made
      in compliance with applicable federal and state securities laws and not in
      violation of any other contractual restrictions to which the Optionee is bound.
      Any proposed transfer on terms and conditions different from those described
      in
      the Transfer Notice, as well as any subsequent proposed transfer by the
      Optionee, shall again be subject to the Right of First Refusal and shall require
      compliance with the procedure described in Subsection (a) above. If the
      Company exercises its Right of First Refusal, the parties shall consummate
      the
      sale of the Shares on the terms set forth in the Transfer Notice within
      60 days after the date when the Company received the Transfer Notice (or
      within such longer period as may have been specified in the Transfer Notice);
      provided, however, that in the event the Transfer Notice provided that payment
      for the Shares was to be made in a form other than cash or cash equivalents
      paid
      at the time of transfer, the Company shall have the option of paying for the
      Shares with cash or cash equivalents equal to the present value of the
      consideration described in the Transfer Notice.

    

    (c) Additional
      Shares or Substituted Securities.
      In the
      event of the declaration of a stock dividend, the declaration of an
      extraordinary dividend payable in a form other than stock, a spin-off, a stock
      split, an adjustment in conversion ratio, a recapitalization or a similar
      transaction affecting the Company’s outstanding securities without receipt of
      consideration, any new, substituted or additional securities or other property
      (including money paid other than as an ordinary cash dividend) which are by
      reason of such transaction distributed with respect to any Shares subject to
      this Section 7 or into which such Shares thereby become convertible shall
      immediately be subject to this Section 7. Appropriate adjustments to
      reflect the distribution of such securities or property shall be made to the
      number and/or class of the Shares subject to this Section 7.

    

    (d) Termination
      of Right of First Refusal.
      Any
      other provision of this Section 7 notwithstanding, in the event that the
      Stock is readily tradable on an established securities market when the Optionee
      desires to transfer Shares, the Company shall have no Right of First Refusal,
      and the Optionee shall have no obligation to comply with the procedures
      prescribed by Subsections (a) and (b) above.

    

    (e) Permitted
      Transfers.
      This
      Section 7 shall not apply to (i) a transfer by beneficiary
      designation, will or intestate succession or (ii) a transfer to the
      Optionee’s spouse, children or to a trust established by the Optionee for the
      benefit of the Optionee or the Optionee’s spouse, children or grandchildren,
      provided in either case that the Transferee agrees in writing on a form
      prescribed by the Company to be bound by all provisions of this Agreement.
      If
      the Optionee transfers any Shares acquired under this Agreement, either under
      this Subsection (e) or after the Company has failed to exercise the Right
      of First Refusal, then this Section 7 shall apply to the Transferee to the
      same extent as to the Optionee.

    

    (f) Termination
      of Rights as Stockholder.
      If the
      Company makes available, at the time and place and in the amount and form
      provided in this Agreement, the consideration for the Shares to be purchased
      in
      accordance with this Section 7, then after such time the person from whom
      such Shares are to be purchased shall no longer have any rights as a holder
      of
      such Shares (other than the right to receive payment of such consideration
      in
      accordance with this Agreement). Such Shares shall be deemed to have been
      purchased in accordance with the applicable provisions hereof, whether or not
      the certificate(s) therefor have been delivered as required by this
      Agreement.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    8. Legality
      of Initial Issuance.

    

    No
      Shares
      shall be issued upon the exercise of this option unless and until the Company
      has determined that:

    

    (a) It
      and
      the Optionee have taken any actions required to register the Shares under the
      Securities Act or to perfect an exemption from the registration requirements
      thereof;

    

    (b) Any
      applicable listing requirement of any stock exchange or other securities market
      on which Stock is listed has been satisfied; and

    

    (c) Any
      other
      applicable provision of state or federal law has been satisfied.

    

    9. No
      Registration Rights.

    

    The
      Company may, but shall not be obligated to, register or qualify the sale of
      Shares under the Securities Act or any other applicable law. The Company shall
      not be obligated to take any affirmative action in order to cause the sale
      of
      Shares under this Agreement to comply with any law.

    

    10. Restrictions
      on Transfer.

    

    (a) Securities
      Law Restrictions.
      Regardless of whether the offering and sale of Shares under the Plan have been
      registered under the Securities Act or have been registered or qualified under
      the securities laws of any state, the Company at its discretion may impose
      restrictions upon the sale, pledge or other transfer of such Shares (including
      the placement of appropriate legends on stock certificates or the imposition
      of
      stop-transfer instructions) if, in the judgment of the Company, such
      restrictions are necessary or desirable in order to achieve compliance with
      the
      Securities Act, the securities laws of any state or any other law.

    

    (b) Market
      Stand-Off.
      In
      connection with any underwritten public offering by the Company of its equity
      securities pursuant to an effective registration statement filed under the
      Securities Act, including the Company’s initial public offering, the Optionee
      shall not directly or indirectly sell, make any short sale of, loan,
      hypothecate, pledge, offer, grant or sell any option or other contract for
      the
      purchase of, purchase any option or other contract for the sale of, or otherwise
      dispose of or transfer, or agree to engage in any of the foregoing transactions
      with respect to, any Shares acquired under this Agreement without the prior
      written consent of the Company or its underwriters. Such restriction (the
“Market Stand-Off”) shall be in effect for such period of time following the
      date of the final prospectus for the offering as may be requested by the Company
      or such underwriters. In no event, however, shall such period exceed 180 days.
      The Market Stand-Off shall in any event terminate two years after the date
      of
      the Company’s initial public offering. In the event of the declaration of a
      stock dividend, a spin-off, a stock split, an adjustment in conversion ratio,
      a
      recapitalization or a similar transaction affecting the Company’s outstanding
      securities without receipt of consideration, any new, substituted or additional
      securities which are by reason of such transaction distributed with respect
      to
      any Shares subject to the Market Stand-Off, or into which such Shares thereby
      become convertible, shall immediately be subject to the Market Stand-Off. In
      order to enforce the Market Stand-Off, the Company may impose stop-transfer
      instructions with respect to the Shares acquired under this Agreement until
      the
      end of the applicable stand-off period. The Company’s underwriters shall be
      beneficiaries of the agreement set forth in this Subsection (b). This
      Subsection (b) shall not apply to Shares registered in the public offering
      under the Securities Act, and the Optionee shall be subject to this
      Subsection (b) only if the directors and officers of the Company are
      subject to similar arrangements.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (c) Investment
      Intent at Grant.
      The
      Optionee represents and agrees that the Shares to be acquired upon exercising
      this option will be acquired for investment, and not with a view to the sale
      or
      distribution thereof.

    

    (d) Investment
      Intent at Exercise.
      In the
      event that the sale of Shares under the Plan is not registered under the
      Securities Act but an exemption is available which requires an investment
      representation or other representation, the Optionee shall represent and agree
      at the time of exercise that the Shares being acquired upon exercising this
      option are being acquired for investment, and not with a view to the sale or
      distribution thereof, and shall make such other representations as are deemed
      necessary or appropriate by the Company and its counsel.

    

    (e) Legends.
      All
      certificates evidencing Shares purchased under this Agreement shall bear the
      following legend:

    

    “THE
      SHARES REPRESENTED HEREBY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED
      OR
      IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN
      AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE
      PREDECESSOR IN INTEREST TO THE SHARES). SUCH AGREEMENT GRANTS TO THE COMPANY
      CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SHARES AND
      CERTAIN REPURCHASE RIGHTS UPON TERMINATION OF SERVICE WITH THE COMPANY. THE
      SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH
      AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE.”

    

    All
      certificates evidencing Shares purchased under this Agreement in an unregistered
      transaction shall bear the following legend (and such other restrictive legends
      as are required or deemed advisable under the provisions of any applicable
      law):

    

    “THE
      SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT
      AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL,
      SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
      REQUIRED.”

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (f) Removal
      of Legends.
      If, in
      the opinion of the Company and its counsel, any legend placed on a stock
      certificate representing Shares sold under this Agreement is no longer required,
      the holder of such certificate shall be entitled to exchange such certificate
      for a certificate representing the same number of Shares but without such
      legend.

    

    (g) Administration.
      Any
      determination by the Company and its counsel in connection with any of the
      matters set forth in this Section 10 shall be conclusive and binding on the
      Optionee and all other persons.

    

    11. Adjustment
      of Shares.

    

    In
      the
      event of any transaction described in Section 8(a) of the Plan, the terms
      of this option (including, without limitation, the number and kind of Shares
      subject to this option and the Exercise Price) shall be adjusted as set forth
      in
      Section 8(a) of the Plan. In the event that the Company is a party to a
      merger or consolidation, this option shall be subject to the agreement of merger
      or consolidation, as provided in Section 8(b) of the Plan.

    

    12. Miscellaneous
      Provisions.

    

    (a) Rights
      as a Stockholder.
      Neither
      the Optionee nor the Optionee’s representative shall have any rights as a
      stockholder with respect to any Shares subject to this option until the Optionee
      or the Optionee’s representative becomes entitled to receive such Shares by
      filing a notice of exercise and paying the Purchase Price pursuant to
      Sections 4 and 5.

    

    (b) No
      Retention Rights.
      Nothing
      in this option or in the Plan shall confer upon the Optionee any right to
      continue in Service for any period of specific duration or interfere with or
      otherwise restrict in any way the rights of the Company (or any Parent or
      Subsidiary employing or retaining the Optionee) or of the Optionee, which rights
      are hereby expressly reserved by each, to terminate his or her Service at any
      time and for any reason, with or without cause.

    

    (c) Notice.
      Any
      notice required by the terms of this Agreement shall be given in writing and
      shall be deemed effective upon personal delivery or upon deposit with the United
      States Postal Service, by registered or certified mail, with postage and fees
      prepaid. Notice shall be addressed to the Company at its principal executive
      office and to the Optionee at the address that he or she most recently provided
      to the Company.

    

    (d) Entire
      Agreement.
      The
      Notice of Stock Option Grant, this Agreement and the Plan constitute the entire
      contract between the parties hereto with regard to the subject matter hereof.
      They supersede any other agreements, representations or understandings (whether
      oral or written and whether express or implied) which relate to the subject
      matter hereof. This Agreement replaces in its entirety that certain Stock Option
      Agreement dated ____, 2005, which is terminated in its entirety.

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (e) Choice
      of Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of Florida, as such laws are applied to contracts entered into and
      performed in such State.

    

    13. Definitions.

    

    (a) “Agreement”
      shall
      mean this Stock Option Agreement.

    

    (b) “Board
      of Directors”
      shall
      mean the Board of Directors of the Company, as constituted from time to time
      or,
      if a Committee has been appointed, such Committee.

    

    (c) “Change
      in Control”
      shall
      mean:

    

    
      	 	
              (i)

            	
              The
                consummation of a merger or consolidation of the Company with or
                into
                another entity or any other corporate reorganization, if more than
                50% of
                the combined voting power of the continuing or surviving entity's
                securities outstanding immediately after such merger, consolidation
                or
                other reorganization is owned by persons who were not stockholders
                of the
                Company immediately prior to such merger, consolidation or other
                reorganization; or

            

    

    

    
      	 	
              (ii)

            	
              The
                sale, transfer or other disposition of all or substantially all of
                the
                Company’s assets.

            

    

    

    A
      transaction shall not constitute a Change in Control if its sole purpose is
      to
      change the state of the Company’s incorporation or to create a holding company
      that will be owned in substantially the same proportions by the persons who
      held
      the Company’s securities immediately before such transaction.

    

    (d) “Code”
      shall
      mean the Internal Revenue Code of 1986, as amended.

    

    (e) “Committee”
      shall
      mean a committee of the Board of Directors, as described in Section 2 of
      the Plan.

    

    (f) “Company”
      shall
      mean Solar Night Industries, Inc., a Delaware corporation.

    

    (g) “Consultant”
      shall
      mean a person who performs bona fide services for the Company, a Parent or
      a
      Subsidiary as a consultant or advisor, excluding Employees and Outside
      Directors.

    

    (h) “Date
      of Grant”
      shall
      mean the date specified in the Notice of Stock Option Grant, which date shall
      be
      the later of (i) the date on which the Board of Directors resolved to grant
      this option or (ii) the first day of the Optionee’s Service. 4

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (i) “Disability”
      shall
      mean that the Optionee is unable to engage in any substantial gainful activity
      by reason of any medically determinable physical or mental impairment.
      5

    

    (j) “Employee”
      shall
      mean any individual who is a common-law employee of the Company, a Parent or
      a
      Subsidiary.

    

    (k) “Exercise
      Price”
      shall
      mean the amount for which one Share may be purchased upon exercise of this
      option, as specified in the Notice of Stock Option Grant.

    

    (l) “Fair
      Market Value”
      shall
      mean the fair market value of a Share, as determined by the Board of Directors
      in good faith. Such determination shall be conclusive and binding on all
      persons.

    

    (m) “ISO”
      shall
      mean an employee incentive stock option described in Section 422(b) of the
      Code.

    

    (n) “Nonstatutory
      Option”
      shall
      mean a stock option not described in Sections 422(b) or 423(b) of the Code.

    

    (o) “Notice
      of Stock Option Grant”
      shall
      mean the document so entitled to which this Agreement is attached.

    

    (p) “Optionee”
      shall
      mean the individual named in the Notice of Stock Option Grant.

    

    (q) “Outside
      Director”
      shall
      mean a member of the Board of Directors who is not an Employee.

    

    (r) “Parent”
      shall
      mean any corporation (other than the Company) in an unbroken chain of
      corporations ending with the Company, if each of the corporations other than
      the
      Company owns stock possessing 50% or more of the total combined voting power
      of
      all classes of stock in one of the other corporations in such
      chain.

    

    (s) “Plan”
      shall
      mean the Solar Night Industries, Inc. 2005 Stock Option Plan, as in effect
      on
      the Date of Grant.

    

    (t) “Purchase
      Price”
      shall
      mean the Exercise Price multiplied by the number of Shares with respect to
      which
      this option is being exercised.

    

    (u) “Right
      of First Refusal”
      shall
      mean the Company’s right of first refusal described in
      Section 8.

    

    (v) “Securities
      Act”
      shall
      mean the Securities Act of 1933, as amended.

    

    (w) “Service”
      shall
      mean service as an Employee, Outside Director or Consultant. 6

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (x) “Share”
      shall
      mean one share of Stock, as adjusted in accordance with Section 8 of the
      Plan (if applicable).

    

    (y) “Stock”
      shall
      mean the Common Stock of the Company, with a par value of $0.001 per Share.
      

    

    (z) “Subsidiary”
      shall
      mean any corporation (other than the Company) in an unbroken chain of
      corporations beginning with the Company, if each of the corporations other
      than
      the last corporation in the unbroken chain owns stock possessing 50% or more
      of
      the total combined voting power of all classes of stock in one of the other
      corporations in such chain.

    

    (aa) “Transferee”
      shall
      mean any person to whom the Optionee has directly or indirectly transferred
      any
      Share acquired under this Agreement.

    

    (bb) “Transfer
      Notice”
      shall
      mean the notice of a proposed transfer of Shares described in
      Section 7.

     

     

    
      *****

       

      
        IN
          WITNESS WHEREOF, the parties hereto have executed this Agreement on ____,
          2006.

        
 

      

    

    
      	 	COMPANY:	SOLAR
              NIGHT INDUSTRIES, INC.
	 	 	 
	 	 	By
              _________________________________
	 	 	 
	 	 	 
	 	OPTIONEE:	____________________________________ 

    

    

     

         

    
      
         

      

      
        11

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