Document:

GENERAL
      FINANCE CORPORATION

     

    2006
      STOCK OPTION PLAN

     

    	1.  	
            PURPOSES
              OF THE PLAN

          

     

    The
      purposes of the 2006 Stock Option Plan (the “Plan”)
      of
      General Finance Corporation, a Delaware corporation (the “Company”),
      are
      to:

     

    1.1  Encourage
      selected employees, directors, consultants and advisers to improve operations
      and increase the profitability of the Company;

     

    1.2  Encourage
      selected employees, directors, consultants and advisers to accept or continue
      employment or association with the Company or its Affiliates; and

     

    1.3  Increase
      the interest of selected employees, directors, consultants and advisers in
      the
      Company’s welfare through participation in the growth in value of the common
      stock of the Company (the “Common
      Stock”).
      All
      references herein to stock or shares, unless otherwise specified, shall mean
      the
      Common Stock.

     

    	2.  	
            TYPES
              OF AWARDS; ELIGIBLE PERSONS

          

     

    2.1  The
      Administrator (as defined below) may, from time to time, take the following
      action, separately or in combination, under the Plan: (a) grant options intended
      to satisfy the requirements of Section 422 of the Internal Revenue Code of
      1986,
      as amended, and the regulations thereunder (the “Code”),
      as
“incentive stock options (“ISOs”)
      and
      (b) grant options not intended to be ISOs, so-called “non-qualified options”
(“NQOs,”
and
      together with ISOs, “Options”).
      Any
      such grants may be made to employees, including employees who are officers
      or
      directors, and to individuals described in Section 1
      of the
      Plan who the Administrator believes have made or will make a contribution to
      the
      Company or any Affiliate (as defined below); provided,
      however,
      that
      only a person who is an employee of the Company or any Affiliate at the date
      of
      the grant of an Option is eligible to receive ISOs under the Plan. 

     

    2.2  For
      purposes of the Plan: (a) the term “Affiliate”
means
      a
      parent or subsidiary corporation as defined in the applicable provisions
      (currently Sections 424(e) and (f), respectively) of the Code; (b) the term
      “employee”
      includes an officer or director who is an employee of the Company; (c) the
      term
“consultant”
      includes persons employed by, or otherwise affiliated with, a consultant; and
      (iv) the term “adviser”
      includes persons employed by, or otherwise affiliated with, an
      adviser.

     

    2.3  Except
      as
      otherwise expressly set forth in the Plan, no right or benefit under the Plan
      shall be subject in any manner to anticipation, alienation, hypothecation,
      or
      charge, and any such attempted action shall be void. No right or benefit under
      the Plan shall in any manner be liable for or subject to debts, contracts,
      liabilities, or torts of any Grantee or any other person except as otherwise
      may
      be expressly required by applicable law.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    	3.  	
            STOCK
              SUBJECT TO THE PLAN; MAXIMUM NUMBER OF
              GRANTS

          

     

    3.1  Subject
      to the provisions of Section 3.2,
      the
      total number of shares of Common Stock that may be issued under the Plan shall
      not exceed 1,500,000 shares. The shares subject to an Option granted under
      the
      Plan that expire, terminate or are cancelled unexercised shall become available
      again for grants under the Plan. Where the exercise price of an Option is paid
      by means of the Grantee’s surrender of previously owned shares of Common Stock
      or the Company’s withholding of shares otherwise issuable upon exercise of the
      Option as may be permitted in the Plan, only the net number of shares issued
      and
      which remain outstanding in connection with such exercise shall be deemed
“issued” and no longer available for issuance under the Plan. No eligible person
      shall be granted Options during any twelve-month period covering more than
      300,000 shares.

     

    3.2  If
      the
      Common Stock is changed by reason of a stock split, reverse stock split, stock
      dividend, recapitalization, combination or reclassification, then the number
      and
      class of shares of stock subject to the Plan that may be issued under the Plan,
      and the maximum number of shares covered by Options to any eligible person
      under
      Section 3.1,
      shall
      be proportionately adjusted (provided that any fractional share resulting from
      such adjustment shall be disregarded).

     

    	4.  	
            ADMINISTRATION

          

     

    4.1  The
      Plan
      shall be administered by the Board of Directors of the Company (the
“Board”)
      or by
      a committee (the “Committee”)
      to
      which the Board has delegated administration of the Plan (or of part thereof)
      (in either case, the “Administrator”).
      The
      Board shall appoint and remove members of the Committee in its discretion in
      accordance with applicable laws. At the Board’s discretion, the Committee may be
      comprised solely of “non-employee directors” within the meaning of Rule 16b-3
      under the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”),
      or
“outside directors” within the meaning of Section 162(m) of the Code. The
      Administrator may delegate non-discretionary administrative duties to such
      employees of the Company as the Administrator deems proper. Notwithstanding
      the
      delegation of administration of the Plan by the Board to a Committee, the Board,
      in its absolute discretion, may at any time and from time to time exercise
      any
      and all rights and duties of the Administrator under the Plan.

     

    4.2  Subject
      to the other provisions of the Plan, the Administrator shall have the authority,
      in its discretion: (a) to grant Options; (b) to determine the fair market value
      of the shares of Common Stock subject to Options; (c) to determine the exercise
      price of Options granted, which shall be no less than the fair market value
      of
      the Common Stock on the date of grant; (d) to determine the persons to whom,
      and
      the time or times at which, Options shall be granted, and the number of shares
      subject to each Option; (e) to construe and interpret the terms and provisions
      of the Plan and all Options granted under the Plan; (f) to prescribe, amend,
      and
      rescind rules and regulations relating to the Plan; (g) to determine the terms
      and provisions of each Option granted (which need not be identical), including
      but not limited to, the time or times at which Options shall be exercisable;
      (h)
      with the consent of the Grantee, to rescind any grant or exercise of an Option;
      (i) to modify or amend the terms of any Option (with the consent of the Grantee
      if the modification or amendment is adverse to the Grantee); (j) to accelerate
      or defer (with the consent of the Grantee) the exercise date of any Option;
      (k)
      to authorize any person to execute on behalf of the Company any instrument
      evidencing the grant of an Option; (l) to determine the duration and purposes
      of
      leaves of absence which may be granted to participants without constituting
      a
      termination of their employment for the purposes of the Plan; and (m) to make
      all other determinations deemed necessary or advisable for the administration
      of
      the Plan and any applicable Option. The Administrator may not reduce the
      exercise price of any outstanding Option.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    4.3  All
      questions of interpretation, implementation, and application of the Plan or
      any
      Option or Option agreement shall be determined by the Administrator, which
      determination shall be final and binding on all persons.

     

    4.4  In
      addition to such other rights of indemnification as they may have as Directors
      or as members of the Committee, and to the extent allowed by applicable law,
      the
      Administrator shall be indemnified by the Company against the reasonable
      expenses, including attorney's fees, actually incurred in connection with any
      action, suit or proceeding or in connection with any appeal therein, to which
      the Administrator may be party by reason of any action taken or failure to
      act
      under or in connection with the Plan or any option granted under the Plan,
      and
      against all amounts paid by the Administrator in settlement thereof (provided,
      however, that the settlement has been approved by the Company, which approval
      shall not be unreasonably withheld) or paid by the Administrator in satisfaction
      of a judgment in any such action, suit or proceeding, except in relation to
      matters as to which it shall be adjudged in such action, suit or proceeding
      that
      such Administrator did not act in good faith and in a manner which such person
      reasonably believed to be in the best interests of the Company, and in the
      case
      of a criminal proceeding, had no reason to believe that the conduct complained
      of was unlawful; provided, however, that within 60 days after institution of
      any
      such action, suit or proceeding, such Administrator shall, in writing, offer
      the
      Company the opportunity at its own expense to handle and defend such action,
      suit or proceeding.

     

    	5.  	
            GRANTING
              OF OPTIONS; AGREEMENTS

          

     

    5.1  No
      Options shall be granted under the Plan after 10 years from the date of adoption
      of the Plan by the Board.

     

    5.2  Each
      Option shall be evidenced by a written agreement, in form satisfactory to the
      Administrator, executed by the Company and the person to whom such grant is
      made
      (“Grantee,”
which
      term shall include the permitted successors and assigns of the Grantee with
      respect to the Option). In the event of a conflict between the terms or
      conditions of an agreement and the terms and conditions of the Plan, the terms
      and conditions of the Plan shall govern.

     

    5.3  Each
      Option agreement shall specify whether the Option it evidences is an NQO or
      an
      ISO, provided,
      however,
      all
      Options granted under the Plan to non-employee directors, consultants and
      advisers of the Company are intended to be NQOs.

     

    5.4  Subject
      to Section 6.2.3
      with
      respect to ISOs, the Administrator may approve the grant of Options under the
      Plan to persons who are expected to become employees, directors, consultants
      or
      advisers of the Company, but are not employees, directors, consultants or
      advisers at the date of approval.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    5.5  For
      purposes of the Plan, the term “employment”
shall
      be deemed to include service as an employee, director, consultant or
      adviser.

     

    	6.  	
            TERMS
              AND CONDITIONS OF OPTIONS

          

     

    Each
      Option granted under the Plan shall be subject to the terms and conditions
      set
      forth in Section 6.1.
      ISOs
      shall also be subject to the terms and conditions set forth in Section
6.2.
      

     

    6.1  Terms
      and Conditions to Which All Options Are Subject.
      All
      Options granted under the Plan shall be subject to the following terms and
      conditions:

     

    6.1.1  Exercise
      Price.
      The
      exercise price of each Option shall be the amount determined by the
      Administrator, but shall not be less than the fair market value of the Common
      Stock on the date of grant (determined under Section 6.1.9).

     

    6.1.2  Time
      of Option Exercise (Vesting).
      Subject
      to Section 6.2.4,
      an
      Option granted under the Plan shall be exercisable (a) immediately as of the
      effective date of the applicable agreement or (b) in accordance with a schedule
      or performance criteria as may be set by the Administrator and specified in
      the
      applicable agreement. However, in no case may an Option be exercisable until
      the
      Company and the Grantee execute a written agreement in form and substance
      satisfactory to the Company.

     

    6.1.3  Grant
      Date.
      The
      date of grant of an Option under the Plan shall be the date approved by the
      Administrator or a future date specified by the Administrator at the time of
      approval and reflected as the effective date of the applicable
      agreement.

     

    6.1.4  Non-Transferability
      of Rights.
      Except
      with the express written approval of the Administrator, which approval the
      Administrator is authorized to give only with respect to NQOs, no Option granted
      under the Plan shall be assignable or otherwise transferable by the Grantee
      except by will or by the laws of descent and distribution. During the life
      of
      the Grantee, an Option shall be exercisable only by the Grantee or permitted
      transferee.

     

    6.1.5  Payment.
      Except
      as provided below, payment in full, in cash, shall be made for all Common Stock
      purchased at the time written notice of exercise of an Option is given to the
      Company and the proceeds of any payment shall be considered general funds of
      the
      Company. The Administrator in its discretion may include in any Option
      agreement, or separately approve in connection with the exercise of any Option,
      any one or more of the following additional methods of payment (subject to
      applicable law):

     

    (a)  Acceptance
      of the Grantee’s full recourse promissory note for all or part of the Option
      price, payable on such terms and bearing such interest rate as determined by
      the
      Administrator (but in no event less than the minimum interest rate specified
      under the Code at which no additional interest or original issue discount would
      be imputed), which promissory note may be either secured or unsecured in such
      manner as the Administrator shall approve (including, without limitation, by
      a
      security interest in the shares of the Company);

     

    (b)  Delivery
      by the Grantee of shares of Common Stock already owned by the Grantee for all
      or
      part of the Option price, provided the fair market value of such shares of
      Common Stock is equal on the date of exercise to the Option price, or such
      portion thereof as the Grantee is authorized to pay by delivery of such stock;
      

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

       

    

    (c)  Through
      the surrender of shares of Common Stock then issuable upon exercise of the
      Option, provided the fair market value (determined as set forth in Section
      6.1.9)
      of such
      shares of Common Stock is equal on the date of exercise to the Option price,
      or
      such portion thereof as the Grantee is authorized to pay by surrender of such
      stock; and

     

    (d)  By
      means
      of so-called cashless exercises through a securities broker to the extent
      exercise in such manner does not violate applicable law or regulation (including
      the Exchange Act and rules and regulations of the Securities and Exchange
      Commission). 

     

    6.1.6  Termination
      of Employment.
      Unless
      otherwise provided in the applicable agreement, if for any reason a Grantee
      ceases to be employed by the Company or any of its Affiliates, Options held
      by
      the Grantee at the date of termination of employment (to the extent then
      exercisable) may be exercised in whole or in part at any time (but in no event
      after the Expiration Date) within one year of the date of termination in the
      case of termination by reason of death or disability; at the commencement of
      business on the date of a termination for “cause” (as defined in the applicable
      agreement or in any agreement with the Company pertaining to employment); and,
      in all other cases, within 90 days of the date of termination. For purposes
      of
      this Section 6.1.6,
      a
      Grantee’s employment shall not be deemed to terminate by reason of the Grantee’s
      transfer from the Company to an Affiliate, or vice versa, or sick leave,
      military leave or other leave of absence approved by the Administrator, if
      the
      period of any such leave does not exceed 90 days or, if longer, if the Grantee’s
      right to reemployment by the Company or any Affiliate is guaranteed either
      contractually or by statute

     

    6.1.7  Withholding
      and Employment Taxes.
      At the
      time of exercise and as a condition thereto, or at such other time as the amount
      of such obligation becomes determinable, the Grantee of an Option shall remit
      to
      the Company in cash all applicable federal and state withholding and employment
      taxes if required by law. Such obligation to remit may be satisfied, if
      authorized by the Administrator in its sole discretion, after considering any
      tax, accounting and financial consequences, by the holder’s (a) delivery of a
      promissory note in the required amount on such terms as the Administrator deems
      appropriate, (b) tendering to the Company previously owned shares of Common
      Stock or other securities of the Company with a fair market value equal to
      the
      required amount, or (c) agreeing to have shares of Common Stock (with a fair
      market value equal to the required amount), which are acquired upon exercise
      of
      the Option, withheld by the Company.

     

    6.1.8  Other
      Provisions.
      Each
      Option granted under the Plan may contain such other terms, provisions, and
      conditions not inconsistent with the Plan as may be determined by the
      Administrator, and each ISO granted under the Plan shall include such provisions
      and conditions as are necessary to qualify the Option as an “incentive stock
      option” within the meaning of Section 422 of the Code.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

       

    

    6.1.9  Determination
      of Fair Market Value.
      For
      purposes of the Plan, the fair market value of Common Stock or other securities
      of the Company shall be determined as follows:

     

    (a)  If
      the
      stock of the Company is listed on a securities exchange or is regularly quoted
      by a recognized securities dealer, and selling prices are reported, its fair
      market value shall be the closing price of such stock on the date the value
      is
      to be determined, but if selling prices are not reported, its fair market value
      shall be the mean between the high bid and low asked prices for such stock
      on
      the date the value is to be determined (or if there are no quoted prices for
      the
      date of grant, then for the last preceding business day on which there were
      quoted prices).

     

    (b)  In
      the
      absence of an established market for the stock, the fair market value thereof
      shall be determined in good faith by the Administrator, with reference to the
      Company’s net worth, prospective earning power, dividend-paying capacity, and
      other relevant factors, including the goodwill of the Company, the economic
      outlook in the Company’s industry, the Company’s position in the industry, the
      Company’s management, and the values of stock of other corporations in the same
      or a similar line of business.

     

    6.1.10  Option
      Term.
      No
      Option shall be exercisable more than 10 years after the date of grant, or
      such
      lesser period of time as is set forth in the applicable agreement (the end
      of
      the maximum exercise period stated in the agreement is referred to in the Plan
      as the “Expiration
      Date”).

     

    6.1.11  Corporate
      Transactions.
      

     

    (a)  Except
      as
      otherwise provided in the applicable Option agreement, in the event of a
      Corporate Transaction, all Options shall terminate upon consummation of the
      Corporate Transaction unless the Administrator determines that they shall
      survive. If the Administrator determines that outstanding Options shall survive,
      and if the Company shall not be the surviving entity in the Corporate
      Transaction, the Administrator shall provide that the outstanding Options shall
      be assumed or an equivalent Option substituted by an applicable successor entity
      or any Affiliate of the successor entity. If outstanding Options are to
      terminate upon consummation of the Corporate Transaction, any Options
      outstanding immediately prior to the consummation of the Corporate Transaction
      shall be deemed fully vested and exercisable immediately prior to the
      consummation of the Corporate Transaction (provided that the Option has not
      expired by its terms and that the Grantee takes all steps necessary to exercise
      the Option prior to the Corporate Transaction as required by the agreement
      evidencing the Option). The Administrator shall notify each Grantee of an
      outstanding Option of a proposed Corporate Transaction at least 20 days prior
      thereto or as soon as may be practicable, and the exercise of any Option by
      a
      Grantee thereafter shall be contingent upon consummation of the Corporate
      Transaction unless the Grantee expressly elects otherwise with respect to vested
      shares.

     

    (b)  In
      a
      Corporate Transaction in which the holders of the Common Stock are to receive
      only cash in exchange for or in cancellation of their shares of Common Stock,
      the Administrator may provide that, with respect to each Option whose exercise
      price per share is less that the per share cash consideration to the holders
      of
      the Common Stock that: (i) such Option shall be deemed automatically exercised
      in full as of the consummation of the Corporate Transaction; and (ii) the
      Grantee shall not be obligated to tender the exercise price in connection with
      such exercise, but shall be entitled to a payment equal to the number of shares
      that may be acquired upon exercise of the Option multiplied by the amount by
      which the per share cash consideration in the Corporate Transaction exceeds
      the
      exercise price. 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

       

    

    (c)  A
      “Corporate
      Transaction”
means:
      (i) the direct or indirect sale, transfer, conveyance or other disposition
      (other than by way of merger or consolidation), in one or a series of related
      transactions, of all or substantially all of the properties or assets of the
      Company; (ii) the adoption of a plan relating to the liquidation or dissolution
      of the Company; (iii) a merger or consolidation in which the Company is not
      the
      Surviving Entity; or (iv) a reverse merger in which the Company is the
      Surviving Entity, but the shares of Common Stock outstanding immediately
      preceding the merger are converted by virtue of the merger into other property,
      whether in the form of securities, cash or otherwise. “Surviving
      Entity”
      means
      the Company if immediately following any merger, consolidation or similar
      transaction, the holders of outstanding voting securities of the Company
      immediately prior to the merger or consolidation own equity securities
      possessing more than 50% of the voting power of the entity existing following
      the merger, consolidation or similar transaction. In all other cases, the other
      entity to the transaction and not the Company shall be the Surviving Entity.
      In
      making the determination of ownership by the stockholders of an entity
      immediately after the merger, consolidation or similar transaction, equity
      securities that the stockholders owned immediately before the merger,
      consolidation or similar transaction as stockholders of another party to the
      transaction shall be disregarded. Further, outstanding voting securities of
      an
      entity shall be calculated by assuming the conversion of all equity securities
      convertible (immediately or at some future time) into shares entitled to
      vote.

     

    6.2  Terms
      and Conditions to Which Only ISOs Are Subject.
      Options
      granted under the Plan designated as ISOs shall be subject to the following
      terms and conditions:

     

    6.2.1  Exercise
      Price.
      Notwithstanding Section 6.1, the exercise price of an ISO granted to any person
      who owns, directly or by attribution under the Code (currently Section 424(d)),
      stock possessing more than 10% of the total combined voting power of all classes
      of stock of the Company or of any Affiliate (a “10%
      Stockholder”)
      shall
      in no event be less than 110% of the fair market value (determined in accordance
      with Section 6.1.9)
      of the
      stock covered by the Option at the time the Option is granted.

     

    6.2.2  Disqualifying
      Dispositions.
      If
      stock acquired by exercise of an ISO granted pursuant to the Plan is disposed
      of
      in a “disqualifying disposition” within the meaning of Section 422 of the Code
      (a disposition within two years from the date of grant of the Option or within
      one year after the issuance of such stock on exercise of the Option), the holder
      of the stock immediately before the disposition shall promptly notify the
      Company in writing of the date and terms of the disposition and shall provide
      such other information regarding the Option as the Company may reasonably
      require.

     

    6.2.3  Grant
      Date.
      If an
      ISO is granted in anticipation of employment as provided in Section 5.4,
      the
      Option shall be deemed granted, without further approval, on the date the
      Grantee assumes the employment relationship forming the basis for such grant,
      and, in addition, satisfies all requirements of the Plan for Options granted
      on
      that date.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

       

    

    6.2.4  Term.
      Notwithstanding Section 6.1.11, no ISO granted to any 10% Stockholder shall
      be
      exercisable more than five years after the date of grant.

     

    6.2.5  $100,000
      Limitation.
      To the
      extent that the aggregate fair market value (determined at the time of grant)
      of
      Common Stock with respect to which ISOs are exercisable for the first time
      by a
      Grantee during any calendar year (under all plans of the Company and its
      Affiliates) exceeds $100,000, the Options or portions thereof which exceed
      such
      limit (according to the order in which they were granted) shall be treated
      as
      NQOs.

     

    6.3  Manner
      of Exercise.
      A
      Grantee wishing to exercise an Option shall give written notice to the Company
      at its principal executive office, to the attention of the officer of the
      Company designated by the Administrator, accompanied by payment of the exercise
      price and/or withholding taxes as provided in Sections 6.1.7
      and
6.1.8.
      The
      date the Company receives written notice of an exercise hereunder accompanied
      by
      the applicable payment will be considered as the date such Option was exercised.
      Promptly after receipt of written notice of exercise and the applicable payments
      called for by this Section 6.3,
      the
      Company shall, without stock issue or transfer taxes to the holder or other
      person entitled to exercise the Option, deliver to the holder or such other
      person a certificate or certificates for the requisite number of shares of
      Common Stock. A holder or permitted transferee of an Option shall not have
      any
      privileges as a stockholder with respect to any shares of Common Stock to be
      issued until the date of issuance (as evidenced by the appropriate entry on
      the
      books of the Company or a duly authorized transfer agent) of such
      shares.

     

    6.4  Stock
      splits, mergers, etc. 

     

    6.4.1  If
      outstanding shares of the Common Stock shall be subdivided into a greater number
      of shares, or a dividend in Common Stock shall be paid in respect of the Common
      Stock, the exercise price of any outstanding Option in effect immediately prior
      to such subdivision or at the record date of such dividend shall, simultaneously
      with the effectiveness of such subdivision or immediately after the record
      date
      of such dividend, be proportionately reduced, and conversely, if the outstanding
      shares of the Common Stock shall be combined into a smaller number of shares,
      the exercise price of any outstanding options in effect immediately prior to
      such combination shall, simultaneously with the effectiveness of such
      combination, be proportionately increased.

     

    6.4.2  When
      any
      adjustment is required to be made in the exercise price, the number of shares
      purchasable upon the exercise of any outstanding Option shall be adjusted to
      that number of shares determined by (a) multiplying an amount equal to the
      number of shares purchasable upon the exercise of the Option immediately prior
      to such adjustment by the exercise price in effect immediately prior to such
      adjustment, and then (b) dividing that product by the exercise price in
      effect immediately after such adjustment.

     

    6.4.3  In
      case
      of any merger, consolidation or capital reorganization or any reclassification
      of the Common Stock (other than the matters described in Section 6.4.1),
      upon
      exercise of any Option outstanding at the time of such merger, consolidation
      or
      capital reorganization or reclassification of the Common Stock, the holder
      shall
      receive the kind and number of shares of stock or other securities or property
      receivable upon such event by a holder of the number of shares of the Common
      Stock that such Option entitles the holder to purchase from the Company
      immediately prior to such event. In every such case, appropriate adjustment
      shall be made in the application of the provisions set forth in the Option
      agreement and in the Plan with respect to the rights and interests thereafter
      of
      the Grantee, to the end that the provisions set forth in the Option agreements
      and in the Plan (including the specified changes and other adjustments to the
      exercise price) shall thereafter be applicable in relation to any shares or
      other property thereafter purchasable upon exercise of such Option.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

       

    

    6.4.4  Any
      adjustments required or contemplated by this Section 6.4 shall be made by the
      Administrator, whose determination in that respect shall be final, binding
      and
      conclusive.

     

    6.4.5  Except
      as
      expressly provided in this Section 6.4,
      no
      Grantee shall have any rights by reason of any subdivision or consolidation
      of
      shares of stock of any class or the payment of any stock dividend or any other
      increase or decrease in the number of shares of stock of any class, and the
      dissolution, liquidation, merger, consolidation or split-up or sale of assets
      or
      stock to another corporation, or any issue by the Company of shares of stock
      of
      any class, or securities convertible into shares of stock of any class, shall
      not affect, and no adjustment by reason thereof shall be made with respect
      to,
      the number of, or Exercise Price for, the shares.

     

    6.4.6  Neither
      the Plan, nor the grant or existence of Options under the Plan, shall affect
      in
      any way the right or power of the Company to make adjustments,
      reclassifications, reorganizations or changes of its capital or business
      structure or to merge, consolidate, dissolve or liquidate, or to sell or
      transfer all or any part of its business or assets.

     

    6.4.7  The
      Company shall not be required to issue fractional shares as a result of any
      adjustments pursuant to this Section 6.4.
      If an
      adjustment under this Section 6.4
      would
      result in a fractional share interest under an Option or any vesting of any
      installment, the Administrator’s decision as to inclusion or exclusion of that
      fractional share interest shall be final, but no fractional shares of stock
      shall be issued under the Plan on account of any such adjustment.

     

    	7.  	
            EMPLOYMENT
              OR CONSULTING RELATIONSHIP

          

     

    Nothing
      in the Plan, or any Option granted under the Plan, shall interfere with or
      limit
      in any way the right of the Company or of any of its Affiliates to terminate
      the
      employment of any Grantee nor confer upon any Grantee any right to continue
      in
      the employ of, or consult with, or advise, the Company or any of its
      Affiliates.

     

    	8.  	
            CONDITIONS
              UPON ISSUANCE OF SHARES

          

     

    8.1  Securities
      Laws.
      Notwithstanding the provisions of any Option, the Company shall have no
      obligation to issue shares under the Plan unless such issuance shall be
      registered or qualified under applicable securities laws, including, without
      limitation, the Securities Act of 1933, as amended (the “Securities
      Act”)
      or
      exempt from such registration or qualification. The Company shall have no
      obligation to register or qualify such issuance under the Securities Act or
      other securities laws.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

       

    

    8.2  Non-Compete
      Agreement.
      As a
      further condition to the receipt of Common Stock pursuant to the exercise of
      an
      Option, the Grantee may be required not to render services for any organization,
      or engage directly or indirectly in any business, competitive with the Company
      at any time during which an Option is outstanding to such Grantee and for six
      months after any exercise of an Option. Failure to comply with this condition
      shall cause such Option and the exercise or issuance of shares thereunder to
      be
      rescinded and the benefit of such exercise, issuance or award to be repaid
      to
      the Company.

     

    	9.  	
            NON-EXCLUSIVITY
              OF THE PLAN

          

     

    The
      adoption of the Plan shall not be construed as creating any limitations on
      the
      power of the Company to adopt such other incentive arrangements as it may deem
      desirable, including, without limitation, the granting of stock options other
      than under the Plan.

     

    	10.  	
            AMENDMENTS
              TO PLAN

          

     

    The
      Board
      may at any time amend, alter, suspend or discontinue the Plan. Without the
      consent of a Grantee, no amendment, alteration, suspension or discontinuance
      may
      adversely affect such person’s outstanding Options except to conform the Plan
      and ISOs granted under the Plan to the requirements of federal or other tax
      laws
      relating to ISOs. No amendment, alteration, suspension or discontinuance shall
      require stockholder approval unless (a) stockholder approval is required to
      preserve incentive stock option treatment for federal income tax purposes or
      (b)
      the Board otherwise concludes that stockholder approval is
      advisable.

     

    	11.  	
            EFFECTIVE
              DATE OF PLAN; TERMINATION

          

     

    The
      Plan
      became effective on August 29, 2006, the date of adoption by the Board;
provided,
      however,
      that no
      shares of Common Stock shall be issued, and no Option shall be exercisable,
      unless and until the Plan is approved by the shareholders pursuant to Delaware
      law within 12 months after adoption by the Board. If any Options are so granted
      and stockholder approval shall not have been obtained within 12 months of the
      date of adoption of the Plan by the Board, such Options shall terminate
      retroactively as of the date they were granted. The Plan (but not Options
      previously granted under the Plan) shall terminate on June 30, 2016. Termination
      of the Plan shall not affect any outstanding Options, which shall continue
      to be
      governed by the Plan and the related Option agreement.

     

    
      
         

      

      
        10EXECUTIVE
      EMPLOYMENT AGREEMENT

    

    This
      EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) dated October 31, 2006 (the
“Effective Date”) by and between Solar Thin Films, Inc., a Delaware corporation
      (the “Company”), and Csaba Toro, an individual (the “Executive”).

    

    The
      Company desires to employ the Executive, and the Executive wishes to accept
      such
      employment with the Company, upon the terms and conditions set forth in this
      Agreement.

    

    NOW
      THEREFORE, in consideration of the foregoing facts and mutual agreements set
      forth below, the parties, intending to be legally bound, agree as
      follows:

    

    1. Employment.
      The
      Company hereby agrees to employ Executive, and Executive hereby accepts such
      employment and agrees to perform Executive’s duties and responsibilities in
      accordance with the terms and conditions hereinafter set forth.

    

    1.1 Duties
      and Responsibilities.
      Executive shall serve as Chief Executive Officer. During the Employment Term
      (as
      defined below), Executive shall perform all duties and accept all
      responsibilities incident to such positions and other appropriate duties as
      may
      be assigned to Executive by the Company’s Board of Directors from time to time.
      The Company shall retain full direction and control of the manner, means and
      methods by which Executive performs the services for which he is employed
      hereunder and of the place or places at which such services shall be rendered.
      

    

    1.2 Employment
      Term.
      The
      term of Executive’s employment under this Agreement shall commence as of the
      Effective Date and shall continue for 36 months, unless earlier terminated
      in
      accordance with Section 4 hereof. The term of Executive’s employment shall be
      automatically renewed for successive one (1) year periods until the Executive
      or
      the Company delivers to the other party a written notice of their intent not
      to
      renew the “Employment Term,” such written notice to be delivered at least sixty
      (60) days prior to the expiration of the then-effective “Employment Term” as
      that term is defined below. The period commencing as of the Effective Date
      and
      ending 36 months thereafter or such later date to which the term of Executive’s
      employment under the Agreement shall have been extended by mutual written
      Agreement is referred to herein as the “Employment Term.”

    

    1.3 Extent
      of Service.
      During
      the Employment Term, Executive agrees to use Executive’s best efforts to carry
      out the duties and responsibilities under Section 1.1 hereof and to devote
      substantially all Executive’s business time, attention and energy thereto.
      Executive further agrees not to work either on a part-time or independent
      contracting basis for any other business or enterprise during the Employment
      Term without the prior written consent of the Company’s Board of Directors (the
“Board”), which consent shall not be unreasonably withheld.

    

    1.4 Base
      Salary.
      The
      Company shall pay Executive a base salary (the “Base Salary”) at the annual rate
      of $200,000 (U.S.), payable at such times as the Company customarily pays its
      other senior level executives (but in any event no less often than monthly).
      The
      Base Salary shall be subject to all state, federal, and local payroll tax
      withholding and any other withholdings required by law. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.5 Shares
      of Common Stock.
      The
      Company shall issue Executive shares of common stock of the Company valued
      at
      $100,000 (U.S.) per year, which shall be issued on a quarterly basis. The number
      of shares of to be issued on a quarterly basis shall be determined by dividing
      $100,000 (U.S.) by $1.36 (the average closing bid price for the 20 trading
      days
      immediately prior to the Effective Date)(the “Issuance Price”), which quotient
      shall in turn be divided by four. The Issuance Price shall remain in effect
      during the Employment Term and for any extension period. 

    

    1.6 Compensation
      Pursuant to the Executive Officer Compensation Plan.
      Executive shall be eligible to participate in the Company’s Executive Officer
      Incentive Plan (the “Incentive Plan”), attached hereto as Exhibit
      A,
      as
      adopted by the Board of Directors of the Company. The Company’s Compensation
      Committee, or the Board of Directors in absence of the Compensation Committee,
      shall establish the formula to be used to determine the amount of the
      compensation to be paid to the Executive under the Incentive Plan. 

    

    1.7 Options.
      The
      Company’s Board will make an initial grant of options to the Executive as
      follows:

    

    (a) an
      incentive ten year option, in the form attached hereto as Exhibit
      B
      (the
“Option”), to purchase up to 3,000,000 additional shares of common stock at an
      exercise price equal to the Issuance Price, which shall be exercisable on a
      cashless basis and vest immediately; provided,
      however,
      the
      Executive shall only be permitted to sell 83,334 shares (the “Earned Option
      Shares”) of common stock of the Company, on a public or private basis, that have
      been issued upon exercise of the Option per month. Such sales shall be
      cumulative. For example, upon the completion of three (3) months of employment
      with the Company, the Executive will be permitted to sell 250,002 shares of
      common stock of the Company that have been issued upon exercise of the Option.
      In the event that the Executive is terminated for Cause (as defined below),
      upon
      death or disability as set forth in Section 4.2 of this Agreement or the
      Executive terminates the Agreement pursuant to Section 4.4 of this Agreement,
      then the Option shall terminate and all shares of common stock that are not
      considered Earned Option Shares shall be immediately cancelled without any
      further action of the Company. All shares issued upon exercise of the Option
      shall be affixed with a legend stating that they are restricted;
      and

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (b) The
      option agreement will contain a provision that in the event there shall have
      been a Change in Control (as defined below) of the Company while the Executive
      is an employee of the Company and the Executive’s employment by the Company
      thereafter shall have been terminated by the Company (the “Termination Date”) or
      by the Executive for Good Reason (as defined below), within two years of the
      date upon which the Change in Control shall have occurred, unless such
      termination is as a result of (i) the Executive’s death; (ii) the Executive’s
      Disability; (iii) the Executive’s Retirement (termination in accordance with the
      Company’s Retirement Plan applicable to its
      employees or in accordance with any other retirement arrangements which have
      been entered into with the Executive) or (iv) the Executive’s termination for
      Cause, all unvested stock options shall immediately and irrevocably vest and
      the
      exercise period of such options shall be automatically extended to the later
      of
      the longest period permitted by the Company’s stock option plans or ten years
      following the Termination Date. For purposes of the option agreement, a “Change
      in Control” shall be deemed to have occurred if (i) there shall be consummated
      (A) any consolidation or merger of the Company in which the Company is not
      the
      continuing or surviving corporation or pursuant to which shares of the Company’s
      Common Stock would be converted into cash, securities or other property, other
      than a merger of the Company in which the holders of the Company’s Common Stock
      immediately prior to the merger have substantially the same proportionate
      ownership of common stock of the surviving corporation immediately after the
      merger, or (B) any sale, lease, exchange or other transfer (in one transaction
      or a series of related transactions) of all or substantially all the assets
      of
      the Company; (ii) the stockholders of the Company shall approve any plan or
      proposal for the liquidation or dissolution of the Company, or (iii) any person
      (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange
      Act of 1934 (the “Exchange Act”)), other than the Company or any employee
      benefit plan sponsored by the Company, shall become the beneficial owner (within
      the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company
      representing 51% or more of the combined voting power of the Company’s then
      outstanding securities ordinarily (and apart from rights accruing in special
      circumstances) having the right to vote in the election of directors, as a
      result of a tender or exchange offer, open market purchases, privately
      negotiated purchases or otherwise. “Good Reason” shall mean any of the following
      events unless it occurs with the Executive’s express prior written
      consent:

    

    
      	 	
              (i)
                

            	
              any
                assignment to the Executive by the Company of any duties inconsistent
                with, or any diminution of, the Executive’s position, duties, titles,
                offices, responsibilities and status with the Company immediately
                prior to
                a Change in Control of the Company, or any removal of the Executive
                from
                or any failure to reelect the Executive to any of such positions
                or
                offices, except in connection with the termination of the Executive’s
                employment for Disability, Retirement or Cause or as a result of
                the
                Executive’s death;

            

    

    

    
      	 	
              (ii)
                

            	
              any
                reduction by the Company in the Executive’s base salary as in effect on
                the date hereof or as the same may be increased from time to time
                during
                the term of the Agreement or the Company’s failure to increase (within 15
                months of the Executive’s last increase in base salary) the Executive’s
                base salary after a Change in Control of the Company in an amount
                which is
                at least equal, on a percentage basis, to the average percentage
                increase
                in base salary for all officers of the Company effected during the
                preceding 12 months;

            

    

    

    
      	
            	(iii)	
              any
                failure by the Company to continue in effect any benefit or incentive
                plan
                or arrangement (including,
                without limitation, the Company’s Retirement Plan, Stock Option Plan for
                Key Employees, Employee Stock Purchase Plan, 401(k) Savings Plan,
                group
                life insurance plan, medical, dental accident and disability insurance
                plans, annual bonus and contingent bonus arrangement, and any plan
                or
                arrangement to receive and exercise  stock
                appreciation rights, or to acquire stock or other securities of the
                Company) in which the Executive is participating at the time of a
                Change
                in Control of the Company (or to substitute and continue other plans
                providing the Executive with substantially similar benefits) hereinafter
                referred to as “Benefit Plans”), the taking of any action by the Company
                which would adversely affect the Executive’s participation in or
                materially reduce the Executive’s benefits under any such Benefit Plan or
                deprive the Executive of any material employee benefit enjoyed by
                the
                Executive at the time of a Change in Control of the Company, or any
                failure by the Company to provide the Executive with the number of
                paid
                vacation days to which the Executive is entitled in accordance with
                the
                vacation policies in effect at the time of a Change of Control of
                the
                Company;

            

    

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	 	
              (iv)

            	
              a
                substantial increase in business travel obligations of the Executive
                over
                such obligations as they existed at the time of a Change in Control
                of the
                Company;

            

    

    

    
      	 	
              (v)

            	
              any
                material breach by the Company of any provision of the stock option
                agreement;

            

    

    

    
      	 	
              (vi)

            	
              any
                failure by the Company to obtain the assumption of the stock option
                agreement by any successor or assign of the Company;
                or

            

    

    

    
      	 	
              (vii)
                

            	
              any
                purported termination of the Executive’s employment after a Change in
                Control which is not effected pursuant to a Company Notice of Termination
                and, for purposes of the stock option agreement, no such purported
                termination shall be effective. For purposes of the stock option
                agreement, a “Company Notice of Termination” shall mean a written notice
                which shall indicate the specific termination provision in this Agreement
                relied upon and which sets forth in reasonable detail the facts and
                circumstances claimed to provide a basis for termination of the
                Executive’s employment under the provision so
                indicated.

            

    

    

    (c) the
      Board
      or any committee appointed by the Board in exercising its unrestricted
      discretion may grant such additional options to the Executive each year of
      the
      Employment Term as it deems appropriate.

    

    1.8 Other
      Benefits.
      During
      the Employment Term, Executive shall be entitled to participate in all employee
      benefit plans and programs made available to the Company’s senior level
      executives as a group or to its employees generally, as such plans or programs
      may be in effect from time to time (the “Benefit Coverages”), including, without
      limitation, medical, dental, hospitalization, short-term and long-term
      disability and life insurance plans, accidental death and dismemberment
      protection and travel accident insurance. Executive shall be provided office
      space and staff assistance appropriate for Executive’s position and adequate for
      the performance of her duties. 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    1.9 Reimbursement
      of Expenses; Vacation; Sick Days and Personal Days.
      Executive shall be provided with reimbursement of expenses related to
      Executive’s employment by the Company on a basis no less favorable than that
      which may be authorized from time to time by the Board, in its sole discretion,
      for senior level executives as a group. Executive shall be entitled to vacation
      and holidays in accordance with the Company’s normal personnel policies for
      senior level executives, but not less than three (3) weeks of vacation per
      calendar year, provided Executive shall not utilize more than ten (10)
      consecutive business days without the express consent of the Chief Executive
      Officer. Unused vacation time will be forfeited as of December 31 of each
      calendar year of the Employment Term. Executive shall be entitled to no more
      than an aggregate of ten (10) sick days and personal days per calendar
      year.

    

    1.10 No
      Other Compensation.
      Except
      as expressly provided in Sections 1.4 through 1.9, Executive shall not be
      entitled to any other compensation or benefits.

    

    2. Confidential
      Information.
      Executive recognizes and acknowledges that by reason of Executive’s employment
      by and service to the Company before, during and, if applicable, after the
      Employment Term, Executive will have access to certain confidential and
      proprietary information relating to the Company’s business, which may include,
      but is not limited to, trade secrets, trade “know-how,” product development
      techniques and plans, formulas, customer lists and addresses, financing
      services, funding programs, cost and pricing information, marketing and sales
      techniques, strategy and programs, computer programs and software and financial
      information (collectively referred to as “Confidential Information”). Executive
      acknowledges that such Confidential Information is a valuable and unique asset
      of the Company and Executive covenants that he will not, unless expressly
      authorized in writing by the Company, at any time during the course of
      Executive’s employment use any Confidential Information or divulge or disclose
      any Confidential Information to any person, firm or corporation except in
      connection with the performance of Executive’s duties for the Company and in a
      manner consistent with the Company’s policies regarding Confidential
      Information. Executive also covenants that at any time after the termination
      of
      such employment, directly or indirectly, he will not use any Confidential
      Information or divulge or disclose any Confidential Information to any person,
      firm or corporation, unless such information is in the public domain through
      no
      fault of Executive or except when required to do so by a court of law, by any
      governmental agency having supervisory authority over the business of the
      Company or by any administrative or legislative body (including a committee
      thereof) with apparent jurisdiction to order Executive to divulge, disclose
      or
      make accessible such information. All written Confidential Information
      (including, without limitation, in any computer or other electronic format)
      which comes into Executive’s possession during the course of Executive’s
      employment shall remain the property of the Company. Except as required in
      the
      performance of Executive’s duties for the Company, or unless expressly
      authorized in writing by the Company, Executive shall not remove any written
      Confidential Information from the Company’s premises, except in connection with
      the performance of Executive’s duties for the Company and in a manner consistent
      with the Company’s policies regarding Confidential Information. Upon termination
      of Executive’s employment, the Executive agrees to return immediately to the
      Company all written Confidential Information (including, without limitation,
      in
      any computer or other electronic format) in Executive’s possession.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    3. Non-Competition;
      Non-Solicitation.

    

    3.1 Non-Compete.
      The
      Executive hereby covenants and agrees that during the term of this Agreement
      and
      for a period of one year following the end of the Employment Term, the Executive
      will not, without the prior written consent of the Company, directly or
      indirectly, on his own behalf or in the service or on behalf of others, whether
      or not for compensation, engage in any business activity, or have any interest
      in any person, firm, corporation or business, through a subsidiary or parent
      entity or other entity (whether as a shareholder, agent, joint venturer,
      security holder, trustee, partner, consultant, creditor lending credit or money
      for the purpose of establishing or operating any such business, partner or
      otherwise) with any Competing Business in the Covered Area. For the purpose
      of
      this Section 3.1, (i) “Competing Business” means any company or entity (whether
      or not organized for profit) that is engaged in the photovoltaic or solar
      industry in any manner whatsoever and (ii) “Covered Area” means all geographical
      areas of the United States, Hungary, Germany, China and other foreign
      jurisdictions where Company then has offices and/or sells its products or
      services directly or indirectly through distributors and/or other sales agents.
      Notwithstanding the foregoing, the Executive may own shares of companies whose
      securities are publicly trades, so long as such securities do not constitute
      more than one percent (1%) of the outstanding securities of any such
      company.

    

    3.2 Non-Solicitation.
      The
      Executive further agrees that as long as the Agreement remains in effect and
      for
      a period of one (1) year from its termination, the Executive will not divert
      any
      business of the Company and/or its affiliates or any customers or suppliers
      of
      the Company and/or the Company’s and/or its affiliates’ business to any other
      person, entity or competitor, or induce or attempt to induce, directly or
      indirectly, any person to leave his or her employment with the
      Company.

    

    3.3 Remedies.
      The
      Executive acknowledges and agrees that his obligations provided herein are
      necessary and reasonable in order to protect the Company and its affiliates
      and
      their respective business and the Executive expressly agrees that monetary
      damages would be inadequate to compensate the Company and/or its affiliates
      for
      any breach by the Executive of his covenants and agreements set forth herein.
      Accordingly, the Executive agrees and acknowledges that any such violation
      or
      threatened violation of this Section 3 will cause irreparable injury to the
      Company and that, in addition to any other remedies that may be available,
      in
      law, in equity or otherwise, the Company and its affiliates shall be entitled
      to
      obtain injunctive relief against he threatened breach of this Section 3 or
      the
      continuation of any such breach by the Executive without the necessity of
      proving actual damages.

    

    4. Termination.
      

    

    4.1 By
      Company.
      The
      Company, by action of the Board, may, in its discretion and at its option,
      terminate the Executive’s employment with or without Cause, and without
      prejudice to any other right or remedy to which the Company or Executive may
      be
      entitled at law or in equity or under this Agreement. In the event the Company
      desires to terminate the Executive’s employment without Cause, the Company shall
      give the Executive not less than sixty (60) days advance written notice.
      Termination of Executive’s employment hereunder shall be deemed to be “for
      Cause” in the event that Executive violates any provisions of this Agreement, is
      guilty of any criminal act other than minor traffic violations, is guilty of
      willful misconduct or gross neglect, or gross dereliction of his duties
      hereunder or refuses to perform his duties hereunder after notice of such
      refusal to perform such duties or directions given to Executive by the
      Board.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    4.2 By
      Executive’s Death or Disability.
      This
      Agreement shall also be terminated upon the Executive’s death and/or a finding
      of permanent physical or mental disability, such disability expected to result
      in death or to be of a continuous duration of no less than twelve (12) months,
      and the Executive is unable to perform his usual and essential duties for the
      Company.

    

    4.3 Compensation
      on Termination.
      In the
      event the Company terminates Executive’s employment with Cause, all payments
      under this Agreement shall cease, except for Base Salary to the extent already
      accrued. In the event of termination by reason of Executive’s death and/or
      permanent disability, Executive or his executors, legal representatives or
      administrators, as applicable, shall be entitled to an amount equal to
      Executive’s Base Salary accrued through the date of termination and for an
      additional one year period, plus a pro rata share of any annual bonus to which
      Executive would otherwise be entitled for the year which death or permanent
      disability occurs. Upon termination of Executive without Cause, the Executive
      shall receive, in full settlement of any claims Executive may have related
      to
      his employment by the Company, Base Salary for a period of one year from the
      date of termination, provided Executive is in full compliance with the
      provisions of Sections 2 and 3 of this Agreement; provided, however, Executive
      shall not be entitled to receive any other compensation under Section 1 of
      this
      Agreement.

    

    4.4 Limited
      Voluntary Termination.
      Executive may voluntarily terminate the Employment Term upon written notice
      for
      any reason during the period commencing on the Effective Date through December
      15, 2006; provided, however, that no further payments shall be due under this
      Agreement in that event except that Executive shall be entitled to any benefits
      due under any compensation or benefit plan provided by the Company for
      executives or otherwise outside of this Agreement and the issuance of all
      securities including shares of common stock and options shall be
      terminated.

    

    5. General
      Provisions.
      

    

    5.1 Modification:
      No Waiver.
      No
      modification, amendment or discharge of this Agreement shall be valid unless
      the
      same is in writing and signed by all parties hereto. Failure of any party at
      any
      time to enforce any provisions of this Agreement or any rights or to exercise
      any elections hall in no way be considered to be a waiver of such provisions,
      rights or elections and shall in no way affect the validity of this Agreement.
      The exercise by any party of any of its rights or any of this elections under
      this Agreement shall not preclude or prejudice such party from exercising the
      same or any other right it may have under this Agreement irrespective of any
      previous action taken.

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    5.2 Notices.
      All
      notices and other communications required or permitted hereunder or necessary
      or
      convenient in connection herewith shall be in writing and shall be deemed to
      have been given when hand delivered or mailed by registered or certified mail
      as
      follows (provided that notice of change of address shall be deemed given only
      when received):

    

      
        	
                If
                  to the Company, to:

              	
                Solar
                  Thin Films, Inc.

              
	 	
                25
                  Highland Boulevard

              
	
                Dix
                  Hills, New York 11746

              	 
	 	 
	
                If
                  to Executive, to:

              	
                Csaba
                  Toro

              
	 	
                ______________

              
	 	
                ______________

              
	 	
                ______________

              

      

Or
      to
      such other names or addresses as the Company or Executive, as the case may
      be,
      shall designate by notice to each other person entitled to receive notices
      in
      the manner specified in this Section.

    

    5.3 Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York.

    

    5.4 Further
      Assurances.
      Each
      party to this Agreement shall execute all instruments and documents and take
      all
      actions as may be reasonably required to effectuate this Agreement.

    

    5.5 Severability.
      Should
      any one or more of the provisions of this Agreement or of any agreement entered
      into pursuant to this Agreement be determined to be illegal or unenforceable,
      then such illegal or unenforceable provision shall be modified by the proper
      court or arbitrator to the extent necessary and possible to make such provision
      enforceable, and such modified provision and all other provisions of this
      Agreement and of each other agreement entered into pursuant to this Agreement
      shall be given effect separately from the provisions or portion thereof
      determined to be illegal or unenforceable and shall not be affected
      thereby.

    

    5.6 Successors
      and Assigns.
      Executive may not assign this Agreement without the prior written consent of
      the
      Company. The Company may assign its rights without the written consent of the
      executive, so long as the Company or its assignee complies with the other
      material terms of this Agreement. The rights and obligations of the Company
      under this Agreement shall inure to the benefit of and be binding upon the
      successors and permitted assigns of the Company, and the Executive’s rights
      under this Agreement shall inure to the benefit of and be binding upon his
      heirs
      and executors. The Company’s subsidiaries and controlled affiliates shall be
      express third party beneficiaries of this Agreement.

    

    5.7 Entire
      Agreement.
      This
      Agreement supersedes all prior agreements and understandings between the
      parties, oral or written. No modification, termination or attempted waiver
      shall
      be valid unless in writing, signed by the party against whom such modification,
      termination or waiver is sought to be enforced.

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    5.8 Counterparts;
      Facsimile.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      for
      all purposes be deemed to be an original, and all of which taken together shall
      constitute one and the same instrument. This Agreement may be executed by
      facsimile with original signatures to follow.

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed
      this Agreement as of the date first written above. 

     

    
      	 	
              SOLAR
                THIN FILMS, INC.

              

               

              By:
                /s/Robert Rubin

              Name:
                Robert Rubin

              Title:
                Chief Executive Officer

              

               

              /s/Csaba
                Toro

              Csaba
                Toro

            

    

    
 

    
      
         

      

      
        10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}]]