Document:

renw808s1ez102_1032012.htm

Exhibit 10.2

 

808 RENEWABLE ENERGY CORPORATION

 

2009 Stock Incentive Plan

 

STOCK OPTION AGREEMENT

 

808 Renewable Energy Corporation, a Nevada corporation (the “Company”), hereby grants to the optionee named below an Option to purchase up to the number of Shares set forth below (the “Option Shares”). The terms and conditions of this Option are set forth in this Stock Option Agreement (this “Stock Option Agreement”) and in the Company’s 2009 Stock Incentive Plan (the “Plan”). All capitalized terms not defined herein will have the meaning given to them in the Plan.

 

I.           GRANT INFORMATION

 

	
Date of Grant (“Date of Grant”):

	
[Date of Grant]

	 	 
	
Name of Optionee:

	
[Name of Optionee]

	 	 
	
Type of Option:

	
__   Incentive (“ISO”)

 

 X   Nonstatutory (“NSO”)

	
Number of Underlying Shares (the “Option Shares”):

	
 

[Number Spelled Out (______)]

	 	 
	
Exercise Price per Share (“Exercise Price”):

	
One Dollar Twenty-Five Cents ($1.25)

	 	 
	
Vesting Start Date (“Vesting Start Date”):

	
[Date of Grant]

	 	 
	
Vesting Schedule (“Vesting Schedule”):

	
This Option vests and is exercisable with respect to the first one-third (1/3) (i.e., 33.333%) of the total number of Option Shares subject to this Option as of the first anniversary of the Date of Grant (the “Date of Grant First Anniversary”) if and when you complete one (1) year of continuous Service after the Date of Grant. The balance of this Option vests and becomes exercisable with respect to the remaining two-thirds (2/3) (i.e., 66.667%) of the total number of Option Shares subject to this Option monthly with respect to 2.7778% of the Option Shares if and when you complete each month of continuous Service after the Date of Grant First Anniversary; provided, however, that the resulting number of Option Shares, as of any vesting date, will be rounded to the nearest whole number. Notwithstanding the foregoing, but subject to the continuous Service requirement referenced above (up to the date of acceleration), the vesting of this Option shall be accelerated so that one hundred percent (100%) of this Option shall be vested and exercisable with respect to one hundred percent (100%) of the Option Shares immediately before any Change in Control.

 

 

  

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	 	By signing below, you agree to all of the terms and conditions set forth in this Stock Option Agreement, including the Grant Information set forth herein, and to all of the terms and conditions set forth in the attached Terms and Conditions, the Notice of Exercise and the Plan.	 

 

 

	Optionee: 	 
	 	[Name of Optionee] (Signature)
	 	 
	 	 
	Company: 	 
	 	[Name of Officer] (Signature)
	 	 
	 	 
	 	 
	Title: 	 
	 	[Title]
	 	 

 

  

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II.           TERMS AND CONDITIONS

 

1.           Vesting; Notice of Contemplated Change in Control; Definition of “Change in Control”. Your Option vests during your Service as specified in the first and second pages of this Stock Option Agreement. Vesting will cease if your Service terminates for any reason. The Company shall give you written notice of any contemplated Change in Control at least twenty (20) days in advance of such Change in Control. For all purposes hereof, “Change in Control” shall mean: (a) the consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if more than fifty percent (50%) of the combined voting power of the continuing or surviving entity’s securities outstanding immediately after such merger, consolidation or other reorganization is owned by persons who were not stockholders of the Company immediately before such merger, consolidation or other reorganization; or (b) any transaction (other than an issuance of shares by the Company for cash or evidences of indebtedness) in or by means of which one or more persons acting in concert acquire, in the aggregate, more than fifty percent (50%) of the combined voting power of the Company’s outstanding equity securities; or (c) the sale, transfer or other disposition of all or substantially all of the Company’s assets; or (d) any other event determined by the Board of Directors to constitute a “Change in Control” for purposes of the Plan. A transaction shall not constitute a “Change in Control” if: (x) its sole purpose is to change the state of the Company’s incorporation; (y) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction; or (z) it constitutes the Company’s initial public offering of its securities.

 

2.           Service; Leaves of Absence. Your Service will cease when you cease to be actively employed by, or a consultant or adviser to, the Company (or any subsidiary) as determined in the sole discretion of the Board of Directors. For the purposes of your Option, your Service does not terminate when you go on a bona fide leave of absence that is approved by the Company in writing, if the terms of the leave provide for continued service crediting, or when continued service crediting is required by applicable law. However, for the purposes of determining whether your Option is entitled to ISO status, your Service will be treated as terminating ninety (90) days after you went on leave, unless your right to return to active work is guaranteed by law or by a contract. Your Service terminates in any event when the approved leave ends, unless you immediately return to active work. The Company determines which leaves count toward Service and when your Service terminates for all purposes under the Plan.

 

3.           Term of Option. Your Option expires on the day before the tenth (10th) anniversary of the Date of Grant and will expire earlier if your Service terminates as follows:

 

(a)           Regular Termination. If your Service terminates for any reason except cause, death or Disability, then your Option will expire at the close of business at Company headquarters on the date that is three (3) months after your termination date. During that three (3) month period, you may exercise that portion of your Option that was vested on your termination date.

 

(b)           Cause. If your Service terminates for cause (as defined by the Company and consistent with applicable law), your Option will expire immediately.

 

  

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(c)           Death. If you die while in Service, then your Option will expire at the close of business at Company headquarters on the date that is twelve (12) months after the date of death. During that twelve (12) month period, your estate or heirs may exercise that portion of your Option that was vested on the date of death.

 

(d)           Disability. If your Service terminates because of your Disability, then your Option will expire at the close of business at Company headquarters on the date that is six (6) months after your termination date. During that six (6) month period, you, or your authorized representative on your behalf, may exercise that portion of your Option that was vested on the date of your Disability.

 

4.           Exercise of Option.

 

(a)           Legal Restrictions. The Company will not permit you to exercise your Option if the issuance of any of the Option Shares at that time would violate any law or regulation. You represent and agree that the Option Shares to be acquired upon exercising your Option will be acquired for investment and not with a view to the sale or distribution thereof. If the sale of Option Shares under the Plan is not registered under the Securities Act of 1933, as amended (“Securities Act”), but an exemption from such registration is available that requires an investment representation or other representations, you will represent and agree at the time of exercise to make such representations as are deemed necessary or appropriate by the Company and its counsel.

 

(b)           Method of Exercise. To exercise your Option, you must complete and file the Company’s “Notice of Exercise” form at the address given on the form, together with full payment. The Notice of Exercise will be effective when it is received by the Company. If someone else wants to exercise your Option after your death, that person must prove to the Company’s satisfaction that he or she is entitled to do so.

 

(c)           Form of Payment. When you submit a Notice of Exercise, you must include payment of the aggregate Exercise Price for the Option Shares you are purchasing. Payment may be made in one (or a combination) of the following forms.

 

	
  

	
·

	
Your personal check, a cashier’s check or a money order.

 

	
  

	
·

	
Your delivery of shares of Common Stock of the Company that you have owned for at least six (6) months (or such other period of time as may be necessary to avoid adverse accounting consequences to the Company).

 

	
  

	
·

	
To the extent that the Common Stock of the Company is publicly traded, your delivery, on a form prescribed by the Company, of an irrevocable direction to a securities broker (approved by the Company) to sell all or part of your shares of Common Stock of the Company and to deliver all or part of the sales proceeds to the Company.

 

	
  

	
·

	
To the extent that the Common Stock of the Company is publicly traded, your delivery, on a form prescribed by the Company, of an irrevocable direction to pledge all or part of your shares of Common Stock of the Company to a securities broker or lender approved by the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company.

 

  

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(d)           Withholding Taxes. You will not be allowed to exercise your Option unless you make acceptable arrangements to pay all withholding or other taxes that may be due as a result of the exercise of your Option or the sale of the Option Shares acquired upon exercise of your Option.

 

5.           Resale Restrictions/Market Stand-Off. In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act, including the Company’s initial public offering, you will not sell, make any short sale of, loan, hypothecate, pledge, grant any portion of your Option for the purchase of or otherwise dispose or transfer for value or agree to engage in any of the foregoing transactions with respect to any of your Option Shares without the prior written consent of the Company or its underwriters, for such period of time after the effective date of such registration statement as may be requested by the Company or such underwriters, not to exceed one hundred eighty (180) days. To enforce the provisions of this Section, the Company may impose stop-transfer instructions with respect to your Option Shares until the end of the applicable stand-off period. You may not sell any of your Option Shares at a time when applicable laws, regulations or Company or underwriter trading policies prohibit such a sale.

 

6.           Right of First Refusal. If you propose to sell, pledge or otherwise transfer to a third party any of your Option Shares acquired under this Stock Option Agreement, or any interest in such Option Shares, the Company will have the “Right of First Refusal” with respect to all (and not less than all) of such Option Shares. If you desire to transfer any of your Option Shares acquired under this Stock Option Agreement, you must give a written notice (“Transfer Notice”) to the Company describing fully the proposed transfer, including the number of Option Shares that you propose to transfer, the proposed transfer price and the name and address of the proposed transferee. The Transfer Notice will be signed both by you and by the proposed new transferee and must constitute a binding commitment of both parties to the transfer of such Option Shares. The Company will have the right to purchase all (and not less than all) of the Option Shares subject to the Transfer Notice under the terms of the proposal described in the Transfer Notice (subject, however, to any change in such terms permitted in the next paragraph below) by delivery of a notice of exercise of the Right of First Refusal within thirty (30) days after the date when the Transfer Notice was received by the Company.

 

If the Company fails to exercise its Right of First Refusal before or within thirty (30) days after the date when the Company received the Transfer Notice, you may, not later than ninety (90) days following receipt of the Transfer Notice by the Company, conclude a transfer of the Option Shares subject to the Transfer Notice under the terms and conditions described in the Transfer Notice. Any proposed transfer under terms and conditions different from those described in the Transfer Notice, as well as any subsequent proposed transfer by you, will again be subject to the Right of First Refusal and will require compliance with the procedure described in the para­graph above. If the Company exercises its Right of First Refusal, then you and the Company will consummate the sale to the Company of the Option Shares subject to the Transfer Notice under the terms set forth in the Transfer Notice within sixty (60) days after the date when the Company received the Transfer Notice (or within such longer period as may have been specified in the Transfer Notice); provided, however, that, if the Transfer Notice provided that payment for such Option Shares was to be made in a form other than lawful money paid at the time of transfer, then the Company will have the option of paying for such Option Shares with lawful money equal to the present value of the consideration described in the Transfer Notice.

 

  

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The Company’s Right of First Refusal will inure to the benefit of the Company’s successors and assigns, will be freely assignable in whole or in part and will be binding on any transferee of the Option Shares subject to the Transfer Notice. The Company’s Right of First Refusal shall terminate if the Company’s Common Stock is listed on an established stock exchange or is quoted regularly on the Nasdaq Stock Market.

 

7.           Transfer of Option. Before your death, only you may exercise your Option. You cannot transfer or assign your Option. For instance, you may not sell your Option or use your Option as security for a loan. If you attempt to do any of these things, your Option will immediately become invalid. You may, however, dispose of your Option in your will. Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your spouse or former spouse, nor is the Company obligated to recognize such individual’s interest in your Option in any other way.

 

8.           No Retention Rights. Your Option does not give you the right to be retained by the Company (or any of its subsidiaries) in any capacity. The Company reserves the right to terminate your Service at any time and for any reason.

 

9.           Stockholder Rights. You, or your estate or heirs, have no rights as a stockholder of the Company until a certificate for your fully vested Option Shares has been issued. No adjustments are made for dividends or other rights if the applicable record date occurs before your stock certificate is issued, except as described in the Plan.

 

10.           Adjustments to Company’s Common Stock. In the event of a stock split, a stock dividend or a similar change in the Company’s Common Stock, the number of Option Shares and the Exercise Price per share of your Option may be adjusted pursuant to the Plan. Your Option will be subject to the terms of the agreement of merger or consolidation in the event the Company is subject to such corporate activity, as described in the Plan.

 

11.           Legends. All certificates representing Option Shares issued upon exercise of your Option will, where applicable, have endorsed thereon all legends required by applicable law, including the following legends:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN AGREEMENT BETWEEN THE COMPANY AND THE INITIAL HOLDER HEREOF. SUCH AGREEMENT PROVIDES FOR CERTAIN TRANSFER RESTRICTIONS, INCLUDING RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SECURITIES. THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREE­MENT TO THE HOLDER HEREOF WITHOUT CHARGE.

 

  

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THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRA­TION AND QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS ARE NOT REQUIRED.

 

12.           Applicable Law. This Stock Option Agreement will be interpreted and enforced under the laws of the State of Nevada without regard to Nevada’s conflicts-of-laws rules.

 

13.           Incorporation of the Plan by Reference. The text of the Plan is incorporated in this Stock Option Agreement by this reference. Certain capitalized terms used in this Stock Option Agreement are defined in the Plan.

 

This Stock Option Agreement and the Plan constitute the entire understanding between you and the Company regarding your Option. All prior written and/or oral agreements, commitments or negotiations (if any) concerning your Option are superseded by this Stock Option Agreement.

 

  

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NOTICE OF EXERCISE

 

808 Renewable Energy Corporation

5011 Argosy Avenue, Suite 4

Huntington Beach, California 92649

Attn:  Chief Financial Officer

	
  

	
Re:

	
Exercise of Stock Option

 

Dear Sir or Madam:

Pursuant to the Stock Option Agreement dated [Date of Grant] (the “Stock Option Agreement”) and the Company’s 2009 Stock Incentive Plan (the “Plan”), I hereby elect to purchase _____________ shares of the Common Stock of the Company (“Common Stock”) at the aggregate exercise price of $__________. I enclose the following documents (check all that are applicable):

 

	
  

	
o

	
My check in the amount of $___________.

 

	
  

	
o

	
Other (specify):

	
.

 

The Common Stock is to be issued and registered in the name(s) of:

 

__________________________

 

__________________________

 

I understand that there may be tax consequences as a result of the purchase or disposition of the Common Stock, I have consulted with any tax consultant I desired to consult, and I am not relying on the Company for any tax advice. I understand that my exercise is governed by my Stock Option Agreement and the Plan and agree to abide by and be bound by their terms and conditions. I represent that the Common Stock is being acquired solely for my own account and not as a nominee for any other party, or for investment, and that I will not offer, sell or otherwise dispose of any such Common Stock except under circumstances that will not result in a violation of the Securities Act of 1933, as amended, or the securities laws of any state.

 

Dated:  __________, 20__.

 

 

	 	 
	 	 (Signature)
	 	 
	 	 
	 	(Please Print Name)
	 	 
	 	 
	 	 
	 	(Address)
	 	 

 

 

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Exhibit 10.3

 

 

RESTRICTED STOCK AWARD AGREEMENT

 

THIS RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”) is effective as of [Date of Award] by and between 808 Renewable Energy Corporation, a Nevada corporation (the “Company”), and [Name of Awardee] (“Awardee”).

 

A.           The Company and Awardee are entering into a certain employment agreement of even date herewith (the “Employment Agreement”).

 

B.           This Agreement is authorized by and subject to the Company’s 2009 Stock Incentive Plan.

 

C.           The Company desires to award and issue to Awardee, and Awardee desires to acquire from the Company, shares of the Company’s Common Stock (as described below), subject to the terms and conditions set forth in this Agreement.

 

The parties agree as follows:

 

1.           Award of Common Stock. The Company hereby agrees to award and issue to Awardee and Awardee hereby agrees to acquire from the Company an aggregate of _______________ (__________) shares of the Company’s Common Stock, par value $.001 per share (collectively, the “Shares”), as consideration for Awardee’s execution and delivery to the Company of the Employment Agreement and this Agreement, subject to the terms and conditions set forth in this Agreement.

 

2.           Issuance of Shares. Upon execution of the Employment Agreement and this Agreement by Awardee, the Company shall issue a duly-executed certificate evidencing the Shares in the name of Awardee to be held in escrow until expiration of the Company’s Repurchase Option as described in this Agreement.

 

3.           Repurchase Option.

 

(a)                      The Shares held by Awardee shall be subject to a right of repurchase in favor of the Company. Subject to the terms and provisions of Section 4, in the event of any voluntary or involuntary termination of Awardee’s employment by the Company for any or no reason, including death or disability, (any such termination, a “Termination”) before all of the Shares are released from the Company’s Repurchase Option (see Section 4), the Company shall, as of the date of such Termination (as reasonably fixed and determined by the Company), have an irrevocable, exclusive option (the “Repurchase Option”) for a period of ninety (90) days from such date to repurchase all (but not less than all) of the Shares that constitute Unreleased Shares (as defined in Section 4) at such time, at One Tenth of One Cent ($.001) per Share (the “Repurchase Price”).

 

  

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(b)                      The Repurchase Option shall be exercised by the Company by written notice to Awardee or Awardee’s executor (with a copy to Escrow Holder) and, at the Company’s option, (i) by delivery to Awardee or Awardee’s executor with such notice of a check in the amount of the Repurchase Price for the Shares being repurchased, (ii) by cancellation by the Company of an amount of Awardee’s indebtedness to the Company equal to the Repurchase Price for the Shares being repurchased or (iii) by a combination of the preceding clauses (i) and (ii), so that the combined payment and cancellation of indebtedness equals the aggregate Repurchase Price for the Shares being repurchased. Upon delivery of such notice and the payment of such Repurchase Price in any of the ways described above, the Company shall become the legal and beneficial owner of the Shares being repurchased and all rights and interests therein or relating thereto, and the Company shall have the right to retain and transfer to the Company’s own name the number of Shares being repurchased by the Company.

 

(c)                      Whenever the Company has the right to repurchase Shares hereunder, the Company may designate and assign to one or more employees, officers, directors or stockholders of the Company or other persons or organizations the right to exercise all or a part of the Company’s repurchase rights under this Agreement and to purchase all or a part of such Shares. If the fair market value of the Shares to be repurchased on the date of such designation or assignment (the “Repurchase FMV”) exceeds the aggregate Repurchase Price of such Shares, then each such designee or assignee shall make a payment to the Company in cash or its equivalent in an amount equal to the difference between the Repurchase FMV and the aggregate Repurchase Price of such Shares.

 

(d)                      If any stock dividend, stock split, recapitalization or other change affecting the Company’s outstanding Common Stock as a class is effected without receipt of consideration, then any new, substituted or additional securities or other property (including money paid other than as a regular cash dividend) that by reason of any such transaction is distributed with respect to the Shares shall be immediately subject to the Repurchase Option but only to the extent that the Shares at the time are covered by the Repurchase Option. Appropriate adjustments to reflect the distribution of such securities or property shall be made to the number of Shares hereunder and to the price per share to be paid upon the exercise of the Repurchase Option in order to reflect the effect of any such transaction on the Company’s capital structure, provided that the aggregate Repurchase Price shall remain the same.

 

4.           Release of Shares From Repurchase Option,

 

(a)                      ____________________ (__________) of the Shares shall be released from the Repurchase Option on the first anniversary of the date of their original issuance, ____________________ (__________) of the Shares shall be released from the Repurchase Option on the second anniversary of the date of their original issuance, and ____________________ (__________) of the Shares shall be released from the Repurchase Option on the third anniversary of the date of their original issuance; provided in each case that Awardee has not ceased to be an employee of the Company before the date of any such release.

 

(b)                      Notwithstanding anything set forth in Section 4(a), all of the Shares shall be released from the Repurchase Option upon the merger or consolidation of the Company with or into another corporation or entity, or the sale of all or substantially all of the Company’s assets to another corporation, entity or person; provided that the stockholders of the Company, determined immediately before such transaction, own less than fifty percent (50%) of the voting securities of the surviving or acquiring corporation or entity (or parent thereof) immediately after such transaction; and provided that Awardee has not ceased to be an employee of the Company before the date of any such transaction.

 

  

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(c)                         [RESERVED].

 

(d)                         [RESERVED].

 

(e)                      Any of the Shares that have not yet been released from the Repurchase Option are referred to in this Agreement as “Unreleased Shares.”

 

(f)                      The Shares that have been released from the Repurchase Option shall be delivered to Awardee at Awardee’s request (see Section 6).

 

5.           Restriction on Transfer. Except for the escrow described in Section 6, none of the Shares or any beneficial interest therein shall be transferred, encumbered or otherwise disposed of in any manner until the release of such Shares from the Repurchase Option in accordance with the provisions of this Agreement.

 

6.           Escrow of Shares.

 

(a)                      The Shares issued under this Agreement shall be held by the Secretary of the Company as escrow holder (“Escrow Holder”), along with a stock assignment executed by Awardee in blank, until the expiration of the Repurchase Option.

 

(b)                      Escrow Holder hereby is directed to permit transfer of the Shares only in accordance with this Agreement or instructions signed by both parties. In the event that further instructions are desired by Escrow Holder, Escrow Holder shall be entitled to rely on directions executed by a majority of the authorized number of the Company’s Board of Directors. Escrow Holder shall have no liability for any act or omission hereunder while acting in good faith in the exercise of Escrow Holder’s own judgment.

 

(c)                      If the Company or any assignee exercises the Repurchase Option, then Escrow Holder, upon receipt of written notice of such option exercise from the proposed transferee, shall take all steps necessary to accomplish such transfer.

 

(d)                      When the Repurchase Option has been exercised or expires unexercised or a portion of the Shares has been released from the Repurchase Option, upon Awardee’s request, Escrow Holder shall promptly cause a new certificate to be issued for such released Shares and shall deliver such certificate to Awardee.

 

(e)                      Subject to the terms hereof, Awardee shall have all the rights of a stockholder with respect to the Shares while they are held in escrow, including the right to vote the Shares and receive cash dividends declared thereon (if any). If, from time to time during the term of the Repurchase Option, there is (i) any stock dividend, stock split or other change in the Shares or (ii) any merger or sale of all or substantially all of the assets or other acquisition of the Company, then any and all new, substituted or additional securities to which Awardee is entitled by reason of Awardee’s ownership of the Shares shall be immediately subject to this escrow, deposited with Escrow Holder and included thereafter as “Shares” for purposes of this Agreement and the Repurchase Option.

 

  

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7.           Right of First Refusal. If Awardee desires (or is required by operation of law or other involuntary transfer) to sell or otherwise transfer any or all of the Shares (whether now held or hereafter acquired) (the “Offered Shares”) to any person, then Awardee first shall offer such Offered Shares as follows:

 

(a)                      Awardee shall give the Company written notice (the “Rights Notice”) of Awardee’s intention, describing the proposed transferee and the price and terms of the proposed transfer. The Company will have thirty (30) days from the date of receipt of the Rights Notice to agree to purchase all or a part of the Offered Shares for the price and on the terms specified in the Rights Notice by giving written notice to Awardee.

 

(b)                      If the Company elects not to purchase all of the Offered Shares, then the Company shall give Awardee notice thereof (the “Company Notice”) and of the amount of the Offered Shares that the Company elects to purchase. If the Company does not elect to purchase all of the Offered Shares, then Awardee will have one hundred thirty five (135) days after the date of mailing of the Rights Notice to sell Offered Shares not purchased by the Company to the proposed transferee at a price and on general terms not more favorable to the transferee thereof than specified in the Rights Notice. If Awardee has not sold the full amount of the Offered Shares within such 135-day period, then Awardee shall not thereafter sell any of the Offered Shares without first offering such securities to the Company in the manner provided above.

 

(c)                      The rights provided in this Section 7 shall not apply to the transfer: (i) to the estate of Awardee by gift, will or intestate succession, (ii) to a member of Awardee’s immediate family, (iii) to the personal trust of Awardee or (iv) to nonprofit institutions by gift or will; provided that the foregoing transfers shall be permitted without compliance with this Section 7 only if such transferee becomes a party to and executes this Agreement.

 

(d)                      The rights of first refusal described in this Section 7 shall terminate on (i) the effective date of a registration statement filed by the Company under the Securities Act of 1933, as amended (the “Securities Act”), with respect to an underwritten public offering of Common Stock of the Company or (ii) the closing date of a sale of assets or merger of the Company or other acquisition transaction pursuant to which stockholders of the Company receive securities of a buyer whose shares are publicly traded under the Securities Act.

 

(e)                      The Company may assign its rights and delegate its duties under this Section 7. If any such assignment or delegation requires consent of any state securities authority, then the parties agree to cooperate in requesting such consent.

 

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

 

  

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(g)                      If any stock dividend, stock split, recapitalization or other transaction affecting the Company’s outstanding Common Stock as a class is effected without receipt of consideration, then new, substituted or additional securities or other property that are by reason of such transaction distributed with respect to the Shares shall be immediately subject to the Company’s rights of first refusal hereunder but only to the extent that the Shares at the time are covered by such right.

 

8.           Awardee’s Representations. In connection with the Company’s award and issuance of the Shares to Awardee, Awardee represents to the Company the following:

 

(a)                      Awardee is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Shares. Awardee is acquiring the Shares for investment for Awardee’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act.

 

(b)                      Awardee understands that the Shares have not been registered under the Securities Act by reason of a specific exemption therefrom, which exemption depends on, among other things, the bona fide nature of Awardee’s investment intent as expressed herein. In this connection, Awardee understands that, in the view of the Securities and Exchange Commission (the “SEC”), the statutory basis for such exemption may not be present if Awardee’s representations meant that Awardee’s present intention was to hold the Shares for a minimum capital gains period under applicable tax statutes, for a deferred sale, for a market rise, for a sale if the market does not rise or for a year or any other fixed period in the future.

 

(c)                      Awardee further acknowledges and understands that the Shares must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Awardee further acknowledges and understands that the Company is under no obligation to register the Shares.

 

(d)                      Awardee is aware of the adoption of Rule 144 by the SEC, promulgated under the Securities Act, which permits limited public resales of securities acquired in a nonpublic offering, subject to the satisfaction of certain conditions, including, among other things, the availability of certain current public information about the issuer, the sale being through a broker in an unsolicited “broker’s transaction” and the amount of securities being sold during any three (3) month period not exceeding specified limitations. Awardee is aware that Rule 144 of the SEC under the Securities Act currently is not available to exempt Awardee’s sale of the Shares from the registration requirements of the Securities Act. Awardee understands that, at the time Awardee desires to sell the Shares, there may be no public market in which to make such a sale and that, even if such a public market exists for the Company’s Common Stock, the Company may not be satisfying the current public information requirement of Rule 144 or other conditions under Rule 144 that are required of the Company. If so, Awardee understands that Awardee will be precluded from selling the Shares under Rule 144.

 

  

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9.           Stock Certificate Legends. The stock certificate evidencing the Shares issued hereunder shall be endorsed with the following (or substantially similar) legends:

 

(a)                      THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF LEGAL COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED.

 

(b)                      THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 

(c)                      Any legend required by applicable state securities laws.

 

10.           Market Stand-Off Agreement. Awardee agrees that, if requested by the Company and an underwriter of the Company’s Common Stock or other securities of the Company during the period of duration specified by the Company and such underwriter following the effective date of a registration statement of the Company filed with the SEC under the Securities Act, Awardee shall not directly or indirectly sell, offer to sell, contract to sell (including any short sale), grant any option to purchase or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any of the Shares or any other securities of the Company held by or on behalf of Awardee or beneficially owned by Awardee (as determined under the rules and regulations of the SEC) at any time during such period except shares of the Company’s Common Stock included in such registration (if any); provided, however, that (a) the foregoing agreement of Awardee shall be applicable only to the first such registration statement of the Company that covers the Company’s Common Stock or other securities of the Company to be sold on the Company’s behalf to the public in an underwritten offering; (b) all officers, directors and stockholders owning greater than five percent (5%) of the Company enter into similar agreements; and (c) such market stand-off time period shall not exceed one hundred eighty (180) days.

 

11.           Adjustment for Stock Splits. All references to the number of Shares and the Repurchase Price per Share in this Agreement shall be appropriately adjusted to reflect any stock split, reverse stock split or stock dividend or other similar change in the Shares that may be made by the Company after the date of this Agreement.

 

  

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12.           Tax Consequences. Awardee has reviewed with Awardee’s own tax advisers the federal, state, local and foreign tax consequences of the transactions contemplated by this Agreement. Awardee is relying solely on such advisers and not on any statement or representation of the Company or any of its agents. Awardee understands that Awardee (and not the Company) shall be responsible for Awardee’s own tax liability that may arise as a result of the transactions contemplated by this Agreement. Awardee understands that Section 83 of the Internal Revenue Code of 1986, as amended (the “Code”), taxes as ordinary income both (i) the difference (if any) between the purchase price paid for the Shares by Awardee (if any) and the fair market value of the Shares on the effective date of this Agreement and (ii) the difference between the amount paid for the Shares by Awardee (if any) and the fair market value of the Shares as of the date on which any restriction on the Shares lapses. In this context, “restriction” includes the right of the Company to buy back the Shares pursuant to the Repurchase Option. Awardee understands that Awardee may elect to be taxed at the time the Shares are purchased or acquired rather than when and as the Repurchase Option or the Section 16(b) period under the Securities Exchange Act of 1934, as amended, expires by filing an election under Section 83(b) of the Code with the Internal Revenue Service within thirty (30) days from the date of purchase or acquisition.

 

AWARDEE ACKNOWLEDGES THAT IT IS AWARDEE’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO TIMELY FILE THE ELECTION UNDER SECTION 83(b) OF THE CODE, EVEN IF AWARDEE REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON AWARDEE’S BEHALF.

 

13.           General Provisions.

 

(a)                      This Agreement shall be governed by the laws of the State of California, as such laws are applied to contracts entered into and performed in such State. This Agreement represents the entire agreement between the parties with respect to the subject matter hereof and may be modified or amended only in a writing signed by both parties.

 

(b)                      Nothing in this Agreement shall confer upon Awardee any right to continue in the service of the Company (or any parent or subsidiary corporation of the Company) for any period of time or restrict in any way the rights of the Company (or any parent or subsidiary corporation of the Company) or Awardee to terminate the service provider status of Awardee at any time for any reason whatsoever, with or without cause.

 

(c)                      Any notice, demand or request required or permitted to be given by either the Company or Awardee pursuant to the terms of this Agreement shall be in writing and shall be deemed given when delivered personally or deposited in the U.S. mail, First Class with postage prepaid, and addressed to the parties at the addresses of the parties set forth at the end of this Agreement or such other address as a party may request by notifying the other in writing. Any notice to Escrow Holder shall be sent to the Company’s address.

 

(d)                      The rights and benefits of the Company under this Agreement shall be transferable to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of and be enforceable by the Company’s successors and assigns. The rights and obligations of Awardee under this Agreement may be assigned only with the prior written consent of the Company, and any purported transfer otherwise shall be null and void.

 

  

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(e)                      Either party’s failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision or provisions and shall not prevent that party thereafter from enforcing each and every other provision of this Agreement. The rights granted to both parties herein are cumulative and shall not constitute a waiver of either party’s right to assert all other legal remedies available to it under the circumstances.

 

(f)                      Awardee agrees upon request to execute all further documents or instruments necessary or desirable to carry out the purposes or intent of this Agreement.

 

(g)                      Awardee confirms that, except for the shares of Common Stock of the Company awarded by the Company to Awardee pursuant to this Agreement, Awardee does not own or have the right to purchase any Common Stock of the Company. All prior agreements with respect thereto (if any) hereby are rendered null and void.

 

(h)                      All representations, warranties and agreements of Awardee contained in this Agreement shall survive the consummation of the transactions contemplated hereby.

 

(i)                      If any dispute arises between the parties hereto with respect to the matters covered by this Agreement that leads to a proceeding to resolve such dispute, then the prevailing party in such proceeding shall be entitled to receive from the other party such prevailing party’s reasonable attorneys’ fees, expert witness fees and out-of-pocket costs incurred in connection with such proceeding in addition to any other relief that may be awarded to such prevailing party.

 

(j)                      Neither this Agreement nor any uncertainty or ambiguity herein will be construed against any party hereto. The parties hereto hereby expressly waive the application of any law, regulation, holding or ruling of construction providing that ambiguities in an agreement or other document shall be construed against the party drafting such agreement or document. All references in this Agreement to “Section” or “Sections” refer to the corresponding Section or Sections of this Agreement unless otherwise expressly specified. Unless otherwise expressly provided in this Agreement, the word “including” wherever it appears in this Agreement does not and shall not limit the words or terms preceding such word.

 

(k)                      If one or more provisions of this Agreement are held to be unenforceable under applicable law, then such provision shall be excluded from this Agreement, and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

(l)                      This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

(m)                      The provisions of this Agreement shall inure to the benefit of and be binding on the Company and its successors and assigns and Awardee and Awardee’s legal representatives, heirs, legatees, distributees, permitted assigns and transferees by operation of law, whether or not any such person has become a party to this Agreement and has agreed in writing to join herein and be bound by the terms and conditions hereof.

 

  

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(n)                      Awardee represents, warrants and acknowledges that Awardee has read carefully this Agreement and understands all of its terms and that Awardee voluntarily is executing and delivering this Agreement. Awardee further represents, warrants and acknowledges that the Company’s legal counsel is not legal counsel to Awardee and has not advised Awardee in any way in connection with or regarding this Agreement. Awardee further represents, warrants and acknowledges that Awardee has been given and had the opportunity to be represented by independent legal counsel in connection with this Agreement and the transactions contemplated hereby and has consulted with such legal counsel or has waived Awardee’s right to do so.

 

[Signature Page Follows]

 

  

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IN WITNESS WHEREOF, the Company and Awardee have duly executed this Agreement to be effective as of the date first written above.

 

	  	  	  
	  	
The “Company”:

	
“Awardee”:

	  	  	  
	  	
808 Renewable Energy Corporation,

	  
	  	
a Nevada corporation

	  
	  	  	  
	  	  	  
	  	
By:           _________________________

	

______________________________

	  	
    [Name of Officer],

	
[Name of Awardee]

	  	
    [Title]

	  
	  	  	  
	  	
Address:

	
Address:

	  	
5011 Argosy Avenue, Suite 4

	
______________________________

	  	
Huntington Beach, CA  92649

	

______________________________

 

 

  

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CONSENT OF SPOUSE

 

 

I, ______________________, spouse of [Name of Awardee], have read and approve the foregoing Agreement. As consideration for granting the right to my spouse to purchase shares of 808 Renewable Energy Corporation as set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact with respect to the exercise of all rights under the Agreement and agree to be bound by the provisions of the Agreement insofar as I may have any right in the Agreement or shares issued pursuant thereto under the community property laws of the State of California or similar laws relating to marital property in effect in the state of our residence as of the date of the signing of the foregoing Agreement.

 

Dated: [Date of Award]

 

 

_________________________________

  

  

  

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

 

FOR VALUE RECEIVED, I, [Name of Awardee], hereby sell, assign and transfer unto ______________________ ___________________ (__________) shares (the “Shares”) of the Common Stock of 808 Renewable Energy Corporation (the “Company”) standing in my name on the books of the Company represented by Certificate No. _____ herewith and hereby irrevocably constitute and appoint _______________________________, attorney, to transfer the Shares on the books of the Company with full power of substitution in the premises.

 

This Stock Assignment may be used only in accordance with the Restricted Stock Award Agreement between the Company and the undersigned effective as of [Date of Award].

 

 

	        Dated: ______________________________	______________________________
	 	[Name of Awardee]

                            

 

SPOUSAL CONSENT

 

__________________________ (Awardee’s spouse) indicates by the execution of this Assignment his or her consent to be bound by the terms herein as to his or her interests, whether as community property or otherwise, if any, in the Shares.

 

 

	 	__________________________
	 	Signature
	 	 
	 	 
	 	__________________________ 

 

 

  

  

  

 

INSTRUCTIONS:  Please do not fill in the blanks other than the signature line. The purpose of this assignment is to enable the Company to exercise its “Repurchase Option,” as set forth in the Restricted Stock Award Agreement, without requiring additional signatures on the part of Awardee.

 

 

ELECTION UNDER SECTION 83(b)

 

OF THE INTERNAL REVENUE CODE OF 1986

 

The undersigned taxpayer hereby makes an election pursuant to Section 83(b) of the Internal Revenue Code with respect to the property described below and supplies the following information in accordance with the regulations promulgated thereunder:

 

1.           The name, address and social security number of the undersigned:

 

 

	 	 Taxpayer  	 Spouse of Taxpayer
	 	 	 
	 	[Name of Awardee] 	[Name of Employee’s Spouse]
	 	[address] 	[address]
	 	[address]  	[address] 
	 	Social Security No.:  _______________	Social Security No.:  _______________ 
	 	 	 
	 	 	 

 

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

 

______________________ (________) shares of Common Stock of

808 Renewable Energy Corporation, a Nevada corporation (the “Company”).

	
  

	
3.

	
The date on which the property was transferred is [Date of Award].

 

	
  

	
4.

	
The taxable year to which this election relates is calendar year 20__.

 

5.           Nature of restrictions to which the property is subject:

 

	
  

	
The shares of stock transferred to the undersigned taxpayer are subject to the provisions of a Restricted Stock Award Agreement between the undersigned and the Company. Under the provisions of the Restricted Stock Award Agreement, the Company will have the right to repurchase the stock at a price that may be less than the fair market value of the shares in the event of the undersigned’s termination of services to the Company.

 

	
  

	
6.

	
The fair market value of the property at the time of transfer (determined without regard to any lapse restriction) was $____ per share.

 

7.           The amount paid by taxpayer for the property was **[$-0-]** **[$____]**.

 

8.           A copy of this statement has been furnished to the Company.

 

 

	       Dated: ______________________________	______________________________
	 	[Name of Awardee]
	 	 
	       Dated: ______________________________	______________________________ 
	 	[Name of Employee’s Spouse]

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