Document:

EBG Document

EXHIBIT 10.2

REVOLVING LINE OF CREDIT

LOAN AGREEMENT

THIS REVOLVING LINE OF CREDIT LOAN AGREEMENT (this “Agreement”) is made as of May 29, 2009, by and between Michael Reger having a business address at 777 Glade Road Suite 300, Boca Raton, Florida 33431("Lender") and GelTech Solutions, Inc., a Delaware Coloration (the "Borrower"), having a business address at 1460 Park Lane South Suite 1, Jupiter, Florida 33458 attention, Michael Cordani.

RECITALS

Lender is willing to make a revolving loan available to Borrower on the terms set forth in this Agreement.

TERMS OF AGREEMENT

NOW THEREFORE, in consideration of the above Recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

1.

Definitions.  Except as otherwise may be provided in this Agreement, the following terms shall have the following definitions:

1.1

The term "Cutoff Date" shall mean the maturity date of the Note.

1.2

The term "Event of Default” shall have the definition given it in Section 9 hereof.

1.3

The term "Loan" shall mean the revolving line of credit loan evidenced by the Note.

1.4

The term “Loan Documents” means this Agreement, the Note, and any other documents and financing statements executed or filed in connection with the Loan.

1.5

The term "Note" shall mean the Revolving Promissory Note dated as of the date hereof, in a principal amount not to exceed Two Million Five Hundred Thousand Dollars ($2,500,000.00), executed by Borrower and delivered to Lender.

2.

Loan Amount; Use of Proceeds; Administrative Fees, Condition Precedent.

2.1

Revolving Loan.  Lender agrees to make the Loan available to Borrower on a revolving basis subject to the terms and conditions hereinafter set forth.  As long as:  (i) no Event of Default shall then exist, nor shall any facts exist which with the passage of time, or the giving of notice, or both would constitute an Event of Default; (ii) the representations and warranties provided by Borrower in this Agreement and the other Loan Documents remain true and correct; (iii) no material adverse change in the financial condition, business operations or prospects of Borrower taken as a whole has occurred since the Effective Date of this Agreement; 

then until the Cutoff Date Borrower may borrow, repay and reborrow Loan proceeds provided, however, at no time will the outstanding principal balance of the Loan exceed Two Million Five Hundred Thousand Dollars ($2,500,000.00); provided, further that any such advancement under the Loan will not make the Borrower insolvent, which shall be evidenced by a written statement by the Chief Financial Officer of Borrower and submitted along with the Loan Request (as defined below). 

2.2

Request for Disbursements of Loan Proceeds.  All requests for an advance under the Note shall be made by delivering to Lender a request for an advance in the form attached hereto as Schedule 2.2 (a “Loan Request”).  Each Loan Request shall be signed by a designated, party in writing, who is authorized to request such advances from the Loan (a “Designated Person”).  Borrower unconditionally authorizes Lender to advance Loan proceeds based on a Loan Request signed by a Designated Person.  The initial Designated Person is Michael Cordani.  Borrower may revoke the authority of a Designated Person to request Loan advances, but only if such revocation is in writing and is signed by Borrower (a “Revocation Notice”).  A Revocation Notice shall be given by Borrower to Lender pursuant to Section 11 hereof provided, however, it shall not be deemed received by Lender and effective to revoke the authority of a Designated Person until actually received by Lender and the Lender shall confirm in writing to Borrower that Lender has received the Revocation Notice.  Any advances of Loan proceeds made by Lender based on a Loan Request signed by a Designated Person prior to the date a Revocation Notice is effective as set forth in the immediately preceding sentence shall be binding on Borrower.  

2.3

Use of Proceeds.  Disbursements under the Loan shall be used solely by Borrower:  (a) for the purposes of working capital of the Company and to acquire inventory (b) pay the costs set forth in the Credit Enhancement and Financing Security Agreement (c) to pay the costs to close the Loan and (d) to repay all advancements made to the Company by the Lender under any previous lines of credit extended to the Borrower from the Lender.  The Borrower covenants that the proceeds of the Loan shall only be used for the purposes set forth in this Section 2.3.

2.4

Repayment of Note. The Note will be repaid as to principal and interest on the terms set forth in the Note.  All payments made pursuant to the Note shall be free and clear of any present or future United States taxes, withholdings or other deductions whatsoever (other than income taxes due pursuant to the laws of the State of Florida and the United States). Lender acknowledges that the Borrower may make payments to Enterprise Bank, which Lender is obligated on a $2,500,000.00 Line of Credit. It is further acknowledged that any payment made directly to Enterprise Bank on behalf of the Lender shall be treated as a payment and reduction in the same amount of the outstanding accrued interest, first, then principal on the Loan.

2.5

Clean-Up Period.  Borrower covenants and agrees that it will comply with the terms of Section 7 of the Note (Clean Up Period). Such Clean Up Period will be coordinated with the Lender in advance in order for Lender to satisfy such requirement under the Line of Credit that the Lender has with Enterprise Bank. 

2.6

Condition Precedent. It shall be a condition precedent for the Lender to advance any amounts under the Loan to the Borrower until all of the outstanding prior 

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obligations owed to the Lender from the Borrower are paid in full, including any amounts due and owing to the Lender pursuant to the Credit Enhancement and Financing Security Agreement. 

3.

Representations and Warranties.  Borrower represents and warrants that as of the date hereof and as of each disbursement under the Loan the following representations and warranties will be true and correct:

3.1

Power; Authorization; Enforceable Obligations.  Borrower has full power, authority and legal right to execute, deliver and perform its obligations under the Loan Documents.  The Loan Documents constitute legal, valid and binding obligations of Borrower, enforceable against Borrower in accordance with their terms.

3.2

 No Violation of Agreements.  The Borrower is not in default under any indenture, mortgage, deed of trust, agreement or instrument to which he is a party or by which it may be bound.

3.3

 No Legal Conflicts.  The borrowing of the Loan and Borrower's execution, delivery and performance of his obligations under the Loan Documents will not: (a) violate, conflict with or result in a default under any agreement or other instrument to which Borrower is a party; (b) violate any law or regulation or any order or decree of any court or governmental instrumentality; (c) require any authorization or consent from, or any filing with, any governmental authority; (d) result in the creation of any lien, charge or encumbrance upon any of the property of the Borrower; nor (e) will the Borrower be insolvent at the time of such disbursement under the Loan. 

3.4

No Litigation.  No action, suit, proceeding or investigation, judicial, administrative or otherwise (including, without limitation, any reorganization, bankruptcy, insolvency or similar proceeding) currently is pending or, to the best of Borrower's knowledge, threatened or contemplated against or affecting Borrower that is not disclosed in Schedule 3.6 hereto.  Borrower is not in default in any material respect under any agreement to which it is a party, or under any applicable statute, rule, order, decree or regulation of any court, arbitrator or governmental body or agency having jurisdiction over the Borrower.

3.5

 Business Purpose of Loan.  Borrower will use the proceeds of the Loan in strict compliance with this Agreement.

3.6

Tax Returns and Payments.  To the best of the Borrower’s knowledge, all federal, state and other tax returns of Borrower required by applicable laws to be filed have been duly filed, and all federal, state and other taxes, assessments and other governmental charges or levies upon Borrower and its properties, income, profits and assets which are due and payable have been paid, except any such nonpayment which is at the time permitted hereunder or where Borrower is challenging such taxes, assessment or other government charges or levies in good faith by appropriate proceedings (diligently pursued) and against which adequate cash reserves have been established.

3.7

Financial Condition.  There has been no material adverse change in the assets, liabilities, properties, and condition, financial or otherwise, of the Borrower from the 

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Effective Date of this Agreement, if such material change occurs the Borrower promptly notify the Lender in writing of such circumstances. 

3.8

Governmental Action.  No action of, or filing with, any governmental or public body or authority is required to authorize or is otherwise required in connection with, the execution, delivery and performance of this agreement, the Note, or any of the Loan Documents or other instruments or documents to be delivered pursuant to the terms of this Agreement.

3.9

 Disclosure.  Neither the schedules nor any certificate, statement, report or other document furnished to Lender by the Borrower or others in connection herewith or in connection with any transaction contemplated hereby, nor this Agreement contain any untrue statements of a material fact or omit to state any material fact necessary in order to make the statements contained therein not misleading.

4.

Survival.  All statements contained in any certificate, financial statement or other instrument delivered by or on behalf of Borrower to Lender pursuant to or in connection with this Agreement or any of the other Loan Documents shall constitute representations and warranties made by Borrower under this Agreement.  All representations and warranties made under this Agreement shall be deemed to be made at and as of the date hereof and at and as of the date of each disbursement under the Loan.

5.

Information.  For so long as the obligations of Borrower under the Loan remain unpaid or unperformed, or this Agreement is in effect, Borrower at the reasonable request of Lender will furnish to Lender at Lender's office:

5.1

Tax Returns.  Copies of all federal and state tax returns filed by Borrower within fourteen (14) days after the filing thereof, and in the event Borrower seeks an extension for the filing of the same, a copy of such extension within fourteen (14) days after the same is filed.

5.2

Other Financial Information.  Such other information concerning the financial condition of Borrower as Lender shall reasonably request.

5.3

Notice of Litigation and Other Matters.  Prompt notice, without request by Lender, of:

5.3.1

the commencement of all proceedings and investigations by or before any governmental or nongovernmental body and all actions and proceedings in any court or other tribunal or before any arbitrator against or in any other way relating adversely to, or adversely affecting, Borrower or any of his properties, assets or businesses which would materially affect the Borrower’s ability repay the Loan pursuant to the terms and conditions of this Agreement; and

5.3.2

any Event of Default or any event which, with the giving of notice or the passage of time, or both, would constitute a default or an event of default by Borrower under any material agreement to which Borrower is a party or by which Borrower or any of his properties may be bound and such action that Borrower is taking to remedy such Event or 

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Default or other default which would materially affect the Borrower’s ability repay the Loan pursuant to the terms and conditions of this Agreement. 

6.

Affirmative Covenants.  For so long as the obligations of Borrower under the Loan remain unpaid or unperformed, or this Agreement is in effect, unless Lender shall otherwise consent in writing, Borrower shall:

6.1

Payment of Taxes and Claims.  Pay or discharge when due, or cause to be paid and discharged when due (a) all material taxes, assessments and governmental charges or levies imposed upon him or upon his income or upon any properties belonging to him, and (b) all lawful claims of materialmen, mechanics, carriers, warehousemen and landlords for labor, materials, supplies and rentals which, if unpaid, might become a lien on all or any portion of the Company’s assets; provided, however, that this paragraph shall not require the payment or discharge of any such tax, assessment, charge, levy or claim which is being diligently contested in good faith by appropriate proceedings which operate to suspend the collection thereof and for which adequate cash reserves have been established.

6.2

Insurance.  The Borrower shall (i) keep all of his properties adequately insured at all times with responsible insurance carriers against loss or damage by fire and other hazards, (ii) maintain adequate insurance at all times with responsible insurance carriers against liability on account of damage to persons and property and under all applicable workmen's compensation laws, and (iii) maintain adequate insurance covering such other risks as Lender may reasonably request.  For the purposes of this Section 6.2:

6.2.1

Insurance shall be deemed adequate if the same if not less extensive in coverage and amount than is customarily maintained by other persons engaged in the same or similar business similarly situated. 

6.2.2

The Borrower shall, from time to time upon request of Lender, promptly furnish or cause to be furnished to Lender evidence, in form and substance satisfactory to Lender, of the maintenance of all insurances required by this Section 6.2 to be maintained, including, but not limited to such originals or copies as Lender may request of policies, certificates of insurance, riders and endorsements relating to such insurance and proof of premium payments.

6.3

Properties in Good Condition.  The Borrower shall keep its properties in good repair, working order and condition and, from time to time, make all needful and proper repairs, renewals, replacements, additions and improvements thereto.

6.4

Pay Indebtedness to Lender and Perform Other Covenants.  The Borrower shall (a) make full and timely payment of the principal of and interest and premium, if any, on the Note and all other indebtedness of the Borrower to Lender, whether now existing or hereafter arising and (b) duly comply with all the terms and covenants contained in the Loan Documents, all at the times and places and in the manner set forth therein

6.5

Further Assurances.  The Borrower shall, at its cost and expense, upon request of Lender, duly execute and deliver, or cause to be duly executed and delivered, to 

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Lender such further instruments and do and cause to be done such further acts that may be necessary or proper in the opinion of Lender to carry out more effectually the provisions and purpose of this Agreement.

7.

Intentionally Omitted.

8.

No Third Party Beneficiary Status.  The parties do not intend the benefits of this Agreement to inure to any third party.  If this Agreement shall be disclosed to any third parties, such disclosure shall be for informational purposes only and no such third party should have any expectation of relying on any of the matters or agreements set forth in this Agreement.

9.

 Events of Default.  The occurrence of any one or more of the following events shall constitute an event of default ("Event of Default") hereunder:

9.1

Bankruptcy.  Either a court shall enter a decree or order for relief in respect of Borrower or Mortgagor in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Borrower or for any substantial part of Borrower’s property, or order the winding up or liquidation of his affairs, and such decree or order shall remain unstayed and in effect for a period of sixty (60) consecutive days or Borrower shall commence a voluntary case under any applicable bankruptcy, insolvency, or other similar law now or hereafter in effect, or shall consent to the entry of an order for relief in any voluntary case under any such law, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or similar official) of Borrower or for any substantial part of Borrower’s property, or shall make any general assignment for the benefit of his creditors, or shall fail generally to pay his debts as they become due or shall take any action in furtherance of the foregoing.

9.2

Attachment.  

The issuing of any attachment or garnishment or the filing of any lien against any property of the Borrower, which attachment, garnishment or lien materially affects the ability of Borrower to repay the Note or to comply with the terms of the Loan Documents and which is not dismissed or satisfied within twenty (20) days after filing or the enforcement of which is not stayed within twenty (20) days after the filing thereof.

9.3

Nonpayment.  Borrower shall fail to pay any sums when due under the terms of the Note and/or the other Loan Documents.

9.4

Default Under Loan Documents.  Borrower shall fail to perform or observe any term, covenant, condition or agreement contained in this Agreement and/or the other Loan Documents, or any amendment hereto or thereto (other than those related to monetary obligations of Borrower, including, without limitation, the payment of interest, principal, charges and/or fees due under the Note) and such failure shall continue for ten (10) days and, if Lender has actual notice of such default, ten (10) days after Borrower receives written notice from Lender of such default.

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9.5

Inaccuracy of Warranties.  If at anytime any representation or warranty made by Borrower in this Agreement and/or the other Loan Documents shall be or become incorrect in any material respect.

9.6

Default Under Other Agreements.  A default by Borrower under any note, mortgage, guaranty or other instrument of indebtedness or any agreement hereafter executed by Borrower in favor of Lender beyond any applicable notice and cure period.

9.7

Material Adverse Change.  A material, adverse change to the financial condition of the Borrower shall occur from the Effective Date of this Agreement.

9.8

Liquidation.  The Liquidation of the Borrower.

9.9

Entry of Judgment.  The entry against Borrower of a judgment which grants money damages in excess of $1,000,000.00, which judgment is not paid within twenty (20) days after the entry of the judgment or the enforcement of which judgment is not stayed by the posting of a bond within twenty (20) days after the entry of the judgment.

9.10

Seizure.  The taking of possession of any substantial part of the property of Borrower at the instance of any governmental authority. 

9.11

Insecurity.  If Lender, in good faith, shall deem itself insecure.

10.

Remedies.  Upon the occurrence of any Event of Default, Lender may exercise any or all of the following rights and remedies available to it under the Note, at its discretion:

10.1

Acceleration.  Declare immediately due and payable all monies advanced under the Note and/or pursuant to this Agreement which are then unpaid.

10.2

No Further Advances.  Refuse to disburse any monies under the Loan.

10.3

Other Remedies.  Exercise any and all remedies available to it under the Note and this Agreement.

10.4

Remedies Not Exclusive.  The failure of Lender to exercise any remedy provided under this Agreement or the Note shall not preclude the resort to any other remedy provided or prevent the subsequent or concurrent resort to any other remedy which by law or equity shall be vested in Lender for the recovery of damages or otherwise in the event of a breach of any of the undertakings of Borrower hereunder.

11.

 Notices.  All communications required hereunder or under the Loan Documents shall be in writing and, except as specifically set forth in Section 2.2 hereof, sent by either hand delivery, special delivery service (e.g., Federal Express) or certified mail, postage prepaid, return receipt requested.  Notice shall be conclusively presumed to have been given three (3) business days after notice is sent by certified mail, the next business day after notice is sent by special delivery service, or upon receipt if sent by hand delivery.  For purposes hereof, the address of the parties hereto (until notice of a change thereof is served as provided in this section) shall be as set forth in the first paragraph of this Agreement.

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12.

Further Assurances.  From time to time Borrower will execute and deliver to Lender such additional instruments as Lender may reasonably request to effectuate the purposes of this Agreement and to assure Lender as secured party of the security interests referred to herein.

13.

Successors and Assigns.  This Agreement shall be binding upon the parties hereto and upon their respective heirs, executors, administrators, successors and assigns, and shall inure to the benefit of the successors and assigns of Lender.  Notwithstanding the foregoing, Borrower shall not have the right to assign his interests in this Agreement, the Note or without the prior written consent of Lender.

14.

Amendment.  This Agreement cannot be changed or amended except as specifically set forth herein and by agreement in writing signed by the party against whom enforcement of the change or amendment is sought.

15.

Governing Law.  This Agreement shall be construed in accordance with and governed by the laws of the State of Florida, without giving effect to choice of law rules.  Borrower shall submit itself to the nonexclusive jurisdiction of federal and state courts located in Palm Beach County, Florida for any action arising out of or related to the Loan, this Agreement or the Loan Documents.

16.

Counterparts.  This Agreement may be executed in duplicate counterparts which when construed together shall constitute a single instrument.

17.

Severability.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

18.

Waiver.  Lender, from time to time, may waive the performance by Borrower of any of its obligations which shall arise under this Agreement, the Note, and may waive, from time to time, any of the conditions to the making of a disbursement of Loan proceeds.  The agreement of Lender to waive any of Borrower's obligations under this Agreement, the Note or the agreement of Lender to waive any of the conditions to the disbursement of Loan proceeds, shall not constitute the agreement of Lender to waive such obligations or conditions in the future nor shall a continual or repeated waiver of such obligation or condition result in the establishment of a course of conduct by which Lender shall be estopped from enforcing such obligations or conditions and Lender may, at its discretion, require strict compliance by Borrower of all the terms, covenants and conditions of this Agreement or the Note 

19.

Indemnification.  Borrower agrees to indemnify and save harmless Lender and its officers, directors, employees, agents, affiliates and shareholders from and against any and all liability, expense, or damage of any kind or nature and from any suits or claims, including reasonable legal fees and expenses, on account of any matter, whether in suit or not, arising out of the Loan, this Agreement or in connection therewith, including, without limitation, liabilities 

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caused by the negligence of the party seeking indemnification, but excluding liabilities caused by the gross negligence or willful misconduct of the party seeking indemnification.

20.

Reimbursement of Expenses.  Borrower shall reimburse Lender upon demand for any reasonable costs and expenses actually incurred by Lender, including, without limitation, reasonable attorney fees, Lender may incur while exercising any right, power, or remedy provided by the Loan, this Agreement or by law.

.

21.

Stamp, Intangible and Recording Taxes.  Borrower will pay any and all stamp, intangible, registration, recording and similar taxes, fees or charges and shall indemnify Lender against any and all liabilities with respect to or resulting from any delay in the payment or omission to pay any such taxes, fees or charges, which may be payable or determined to be payable in connection with the execution, delivery, performance or enforcement of this Agreement, the Note or the perfection of any rights or liens thereunder.

22.

General Construction.  Defined terms used in this Agreement may be used interchangeably in singular or plural form.

23.

WAIVER OF JURY TRIAL.  BORROWER AND LENDER HEREBY WAIVE ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, COUNTERCLAIM OR SUBSEQUENT PROCEEDING, BROUGHT BY EITHER LENDER OR BORROWER WITH RESPECT TO ANY OBLIGATION CREATED UNDER THIS AGREEMENT OR THE NOTE AGAINST ANY OR ALL OF THE OTHERS ON ANY MATTERS WHATSOEVER ARISING OUT OF, OR IN ANY WAY RELATED TO THIS AGREEMENT, THE NOTE OR ANY OF THE OTHER LOAN DOCUMENTS.

The parties hereto have duly executed this Revolving Line of Credit Loan Agreement on the day and year first above written.

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[REVOLVING LINE OF CREDIT LOAN AGREEMENT]

				
	                                                                                

	LENDER:

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 

	 
	Michael Reger

	 
	 
	 

	 
	 
	 

	 
	BORROWER:

	 
	 
	 

	 
	 
	 

	 
	By:

	                                                

	 
	 
	 

	 
	Print Name:

	 

	 
	 
	 

	 
	Its:

	 

10DIRECTOR NON-QUALIFIED STOCK OPTION AGREEMENT

EXHIBIT 10.6

DIRECTOR NON-QUALIFIED STOCK OPTION AGREEMENT

THIS STOCK OPTION AGREEMENT (the “Agreement”) entered into as of this 25th day of September, 2008 between GelTech Solutions, Inc. (the “Company”) and ____________ (the “Director”), a member of the Company’s board of directors (the “Board”).

WHEREAS, by action taken by the Board it has adopted the 2007 Equity Incentive Plan (the “Plan”); and

WHEREAS, by action taken by the Board it has been determined that in order to enhance the ability of the Company to attract and retain qualified directors it will grant the Director the right to purchase stock in the Company pursuant to non-qualified options.

NOW THEREFORE, in consideration of the mutual covenants and promises hereafter set forth and for other good and valuable consideration, receipt of which is acknowledged, the parties hereto agree as follows:

1.

Grant of Non-Qualified Options.  The Company irrevocably grants to the Director, as a matter of separate agreement and not in lieu of salary or other compensation for services, the right and option to purchase all or any part of __________ shares of authorized but unissued or treasury common stock of the Company (the “Options”) on the terms and conditions herein set forth.  Of the Options, _______ shall be for service as a director, _______shall be for service as Chairman of the Audit Committee, and ____________ shall be for service as a member of the Compensation Committee.

2.

Price.  The exercise price of the shares of common stock subject to the Options shall be $0.88 per share. 

3.

Vesting -When Exercisable.  

(a)

The Options shall vest on June 30, 2009 as long as the Director remains with the Company in the capacity in which the grant was received on such vesting date.  

(b)

Subject to Sections 3(c) and 4 of this Agreement, Options may be exercised prior to vesting and remain exercisable for 10 years from the date of grant or until 6:00 p.m. New York time on September 25, 2018.

(c)

However, notwithstanding any other provision of this Agreement at the option of the Board, all Options, whether vested or unvested shall be immediately forfeited in the event of:

(1)

Purchasing or selling securities of the Company without written authorization in accordance with the Company’s inside information guidelines then in effect;

1

(2)

Breaching any duty of confidentiality including that required by the Company’s inside information guidelines then in effect;

(3)

Competing with the Company; or

(4)

Recruitment of Company personnel after ceasing to be a director.

(d)

Notwithstanding any other provision in this Agreement, the Options automatically vest on the date of a “Change in Control.”  A “Change in Control” shall mean any of the following: 

(1)

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 corporate reorganization are owned by persons who were not shareholders of the Company immediately prior to such merger, consolidation or other corporate reorganization; 

(2)

any entity or person not now an executive officer, director or 30% beneficial owner of the Company becomes either individually or as part of a group (required to file a Schedule 13D or 13G with the Securities and Exchange Commission (“SEC”)) the beneficial owner of 30% or more of the Company’s common stock; for this purpose, the terms “person” and “beneficial ownership” shall have the meanings provided in Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) or related rules promulgated by the SEC;

(3)

the closing of a sale of all or substantially all of the assets of the Company in a transaction which requires shareholder approval;  

(4)

individuals who, as of the date of this Agreement, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided, however, that any individual becoming a director subsequent to the date of this Agreement whose election or nomination for election by the Company’s shareholders was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Company (as such term is used in Rule 14a-11 of Regulation 14A, or any successor section, promulgated under the Exchange Act); or

(5)

the Board, in its sole and absolute discretion, determines that there is a Change in Control of the Company.

4.

Termination of Relationship.

(a)

If for any reason, except death or disability as provided below, the Director 

2

ceases to act as a director of the Company, all rights granted hereunder shall terminate effective one year from the date the Director ceases to act as a director, except as otherwise provided for herein.

(b)

If the Director shall die while a director of the Company, his estate or any Transferee, as defined herein, shall have the right within one year from the date of the Director’s death to exercise the Director’s vested Options subject to Section 3(c). For the purpose of this Agreement, “Transferee” shall mean a person to whom such shares are transferred by will or by the laws of descent and distribution.

(c)

No transfer of the Options by the Director by will or by the laws of descent and distribution shall be effective to bind the Company unless the Company shall have been furnished with written notice thereof and a copy of the letters testamentary or such other evidence as the Board may deem necessary to establish the authority of the state and the acceptance by the Transferee or Transferees of the terms and conditions of the Options.

(d)

If the Director becomes disabled while a director of the Company within the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986, the three-month period referred to in Section 4(a) of this Agreement shall be extended to one year.

5.

Profits on the Sale of Certain Shares; Redemption.  If any of the events specified in Section 3(c) of this Agreement occur within one year from the last date the Director is a director of the Company (the “Termination Date”), all profits earned from the sale of the Company’s securities, including the sale of shares of common stock underlying Options, during the two-year period commencing one year prior to the Termination Date shall be forfeited and forthwith paid by the Director to the Company.  Further, in such event, the Company may at its option redeem shares of common stock acquired upon exercise of Options by payment of the exercise price to Director.  The Company’s rights under this Section 5 do not lapse one year from the Termination Date but are a contract right subject to any appropriate statutory limitation period.

6.

Method of Exercise.  The Options shall be exercisable by a written notice which shall:

(a)

state the election to exercise the Options, the number of shares to be exercised, the person in whose name the stock certificate or certificates for such shares of common stock is to be registered, his address and social security number (or if more than one, the names, addresses and social security numbers of such persons);

(b)  

contain such representations and agreements as to the holder’s investment intent with respect to such shares of common stock as set forth in Section 11 hereof;

(c)  

be signed by the person or persons entitled to exercise the Options and, if the Options are being exercised by any person or persons other than the Director, be accompanied by proof, satisfactory to counsel for the Company, of the right of such person or persons to exercise the Options; and

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(d)

be accompanied by full payment of the purchase or exercise price in United States dollars in cash or by check.  

The certificate or certificates for shares of common stock as to which the Options shall be exercised shall be registered in the name of the person or persons exercising the Options.

7.

Sale of Shares Acquired Upon Exercise of Options.  Any shares of the Company’s common stock acquired pursuant to Options granted hereunder as set forth herein cannot be sold by the Director until at least six months elapse from the date of grant of the Options except in case of death or disability or if the grant was exempt from the short-swing profit provisions of Section 16(b) of the Securities Exchange Act of1934. 

8.

Anti-Dilution Provisions.  The Options granted hereunder shall have the anti-dilution rights set forth in the Plan.

9.

Necessity to Become Holder of Record.  Neither the Director nor his/her estate shall have any rights as a shareholder with respect to any shares covered by the Options until such person shall have become the holder of record of such shares.  No adjustment shall be made for cash dividends or cash distributions, ordinary or extraordinary, in respect of such shares for which the record date is prior to the date on which he/she shall become the holder of record thereof.

10.

Reservation of Right to Terminate Relationship.  Nothing contained in this Agreement shall restrict the right of the Company to terminate the relationship of the Director at any time, with or without cause. The termination of the relationship of the Director by the Company, regardless of the reason therefor, shall have the results provided for in Sections 3 and 5 of this Agreement.  

11.

Conditions to Exercise of Options.  In order to enable the Company to comply with the Securities Act of 1933 (the “Securities Act”) and relevant state law, the Company may require the Director, the Director’s estate, or any transferee as a condition of the exercising of the Options granted hereunder, to give written assurance satisfactory to the Company that the shares subject to the Options are being acquired for his/her own account, for investment only, with no view to the distribution of same, and that any subsequent resale of any such shares either shall be made pursuant to a registration statement under the Securities Act and applicable state law which has become effective and is current with regard to the shares being sold, or shall be pursuant to an exemption from registration under the Securities Act and applicable state law.

The Options are subject to the requirement that, if at any time the Board shall determine, in its discretion, that the listing, registration, or qualification of the shares of common stock subject to the Options upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection with the issue or purchase of shares under the Options, the Options may not be exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected.  

12.

Duties of Company.  The Company will at all times during the term of Options:

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(a)

Reserve and keep available for issue such number of shares of its authorized and unissued common stock as will be sufficient to satisfy the requirements of this Agreement;

(b)

Pay all original issue taxes with respect to the issue of shares pursuant hereto and all other fees and expenses necessarily incurred by the Company in connection therewith;

(c)

Use its best efforts to comply with all laws and regulations which, in the opinion of counsel for the Company, shall be applicable thereto.

13.

Parties Bound by Plan.  The Plan and each determination, interpretation or other action made or taken pursuant to the provisions of the Plan shall be final and shall be binding and conclusive for all purposes on the Company and the Director and his/her respective successors in interest.

14.

Severability.  In the event any parts of this Agreement are found to be void, the remaining provisions of this Agreement shall nevertheless be binding with the same effect as though the void parts were deleted.

15.

Arbitration.  Any controversy, dispute or claim arising out of or relating to this Agreement, or its interpretation, application, implementation, breach or enforcement which the parties are unable to resolve by mutual agreement, shall be settled by submission by either party of the controversy, claim or dispute to binding arbitration in Palm Beach County, Florida (unless the parties agree in writing to a different location), before a single arbitrator in accordance with the rules of the American Arbitration Association then in effect. The decision and award made by the arbitrator shall be final, binding and conclusive on all parties hereto for all purposes, and judgment may be entered thereon in any court having jurisdiction thereof.

16.

Benefit.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their legal representatives, successors and assigns.

17.

Notices and Addresses.  All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently given if delivered to the addressees in person, by Federal Express or similar receipted delivery, or by facsimile delivery as follows:

The Director:

__________________

__________________

__________________

The Company:

Mr. Michael Cordani

GelTech Solutions, Inc.

1460 Park Lane South, Suite 1

Jupiter, FL 33458

Facsimile: (561) 427-6182

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with a copy to:

Michael D. Harris, Esq.

Harris Cramer LLP

1555 Palm Beach Lakes Blvd., Suite 310

West Palm Beach, FL 33401

Facsimile:  (561) 659-0701

or to such other address as either of them, by notice to the other may designate from time to time.  The transmission confirmation receipt from the sender’s facsimile machine shall be evidence of successful facsimile delivery. Time shall be counted to, or from, as the case may be, the delivery in person or by mailing.

18.

Attorney’s Fees.  In the event that there is any controversy or claim arising out of or relating to this Agreement, or to the interpretation, breach or enforcement thereof, and any action or proceeding is commenced to enforce the provisions of this Agreement, the prevailing party shall be entitled to a reasonable attorney’s fee, costs and expenses.

19.

Governing Law.  This Agreement and any dispute, disagreement, or issue of construction or interpretation arising hereunder whether relating to its execution, its validity, the obligations provided herein or performance shall be governed or interpreted according to the laws of the State of Delaware without regard to choice of law considerations.  

20.

Oral Evidence.  This Agreement constitutes the entire Agreement between the parties and supersedes all prior oral and written agreements between the parties hereto with respect to the subject matter hereof. Neither this Agreement nor any provision hereof may be changed, waived, discharged or terminated orally, except by a statement in writing signed by the party or parties against which enforcement or the change, waiver discharge or termination is sought.

21.

Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.  The execution of this Agreement may be by actual or facsimile signature.

22.

Section or Paragraph Headings.  Section headings herein have been inserted for reference only and shall not be deemed to limit or otherwise affect, in any matter, or be deemed to interpret in whole or in part any of the terms or provisions of this Agreement.

6

IN WITNESS WHEREOF the parties hereto have set their hand and seals the day and year first above written.

			
	WITNESSES:

	GelTech Solutions, Inc.

	 
	 
	 

	 
	 
	 

	 
	 
	 

	                                                     

	By:

	                                                      

	 
	 
	 

	 
	 
	Michael Cordani

	 
	 
	Chief Executive Officer

	 
	 
	 

	 
	 
	 

	 
	 
	DIRECTOR:

	 
	 
	 

	 
	 
	 

	 
	 
	 

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