Document:

Exhibit 10.2 

REGISTRATION RIGHTS
AGREEMENT 

        This
Registration Rights Agreement (this “AGREEMENT”) is made and entered into as of
March ___, 2007, by and among Security With Advanced Technology, Inc., a Colorado
corporation (the “COMPANY”), and the investors signatory hereto (each a
“INVESTOR” and collectively, the “INVESTORS”). 

        This
Agreement is made pursuant to the Securities Purchase Agreement between the Company and
each Investor of even date herewith (the “PURCHASE AGREEMENT”). 

        The
Company and the Investors hereby agree as follows: 

         1.       
          Definitions. Capitalized terms used and not otherwise defined herein that
          are defined in the Purchase Agreement will have the meanings given such terms in
          the Purchase Agreement. As used in this Agreement, the following terms have the
          respective meanings set forth in this Section 1: 

“ADVICE” has the meaning
set forth in Section 6(d). 

“CLOSING DATE” means the date
of the closing date of the Purchase Agreement. 

“COMMISSION” means the
Securities and Exchange Commission. 

“EFFECTIVE DATE” means the
date that the Registration Statement filed pursuant to Section 2(a) or 2(b) is first
declared effective by the Commission. 

“EFFECTIVENESS PERIOD” has
the meaning set forth in Section 2(a). 

“EXCHANGE ACT” means the
Securities Exchange Act of 1934, as amended. 

“FILING DATE” means (a)
with respect to the SWATW Warrants, as soon as practicable following the Closing Date;
provided, however, that such Registration Statement will include the SWATW Warrants issued
to certain of the Investors, among others, in the Company’s September 2006 private
placement, (b) with respect to the additional Registration Statement required to be filed
under Section 2(a) (except the Registration Statement required for the SWATW Warrants),
the 90th day following the Shareholder Approval Date, and (c) with respect to any
additional Registration Statements that may be required pursuant to Section 2(b), the 45th
day following (x) if such Registration Statement is required because the Commission shall
have notified the Company in writing that certain Registrable Securities were not eligible
for inclusion on a previously filed Registration Statement, the date or time on which the
Commission shall indicate as being the first date or time that such Registrable Securities
may then be included in a Registration Statement, or (y) if such Registration Statement is
required for a reason other than as described in (x) above, the date on which the Company
first knows, or reasonably should have known, that such additional Registration
Statement(s) is required. 

“HOLDER” or
“HOLDERS” means the holder or holders, as the case may be, from time to time of
Registrable Securities. 

“INDEMNIFIED PARTY” has the
meaning set forth in Section 5(c). 

“INDEMNIFYING PARTY” has
the meaning set forth in Section 5(c). 

“LOSSES” has the meaning set
forth in Section 5(a). 

“NOTES” means the
Convertible Promissory Notes of even date herewith issued to the Investors pursuant to the
Purchase Agreement. 

“PREFERRED STOCK” means the
Series A Convertible Preferred Stock of the Company into which the Notes are convertible
pursuant to the terms of the Purchase Agreement and the Notes. 

“PROCEEDING” means an
action, claim, suit, investigation or proceeding (including, without limitation, an
investigation or partial proceeding, such as a deposition), whether commenced or
threatened. “PROSPECTUS” means the prospectus included in a Registration
Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement
in reliance upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by a Registration Statement, and all
other amendments and supplements to the Prospectus, including post-effective amendments,
and all material incorporated by reference or deemed to be incorporated by reference in
such Prospectus. 

“REGISTRABLE SECURITIES”
means (without regard to any limitations on beneficial ownership contained in the Warrants
or in the Preferred Stock into which the Notes are convertible): (i) the Warrant Shares,
(ii) the Underlying Shares, (iii) the SWATW Warrants (unless such Warrants are replaced
pursuant to the terms of the Side Agreement between the Company and the Investors of even
date herewith, in which case such replacement warrants shall not constitute Registrable
Securities) and (iv) any securities issued or issuable upon any stock split, dividend or
other distribution, recapitalization or similar event, or any conversion price adjustment
with respect to any of the securities referenced in (i), (ii) or (iii) above or other
securities issued or issuable to each Holder or its transferee or designee (x) upon
exercise of the Warrants, or (y) upon any distribution with respect to, any exchange for
or any replacement of such Warrants, Warrant Shares or Underlying Shares or (z) upon any
conversion, exercise or exchange of any securities issued in connection with any such
distribution, exchange or replacement; 

“REGISTRATION STATEMENT”
means the registration statements required to be filed in accordance with Section 2(a) and
any additional registration statement(s) required to be filed under Section 2(b),
including (in each case) the Prospectus, amendments and supplements to such registration
statements or Prospectus, including pre- and post-effective amendments, all exhibits
thereto, and all material incorporated by reference or deemed to be incorporated by
reference therein. 

“RULE 144” means Rule 144
promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the Commission
having substantially the same effect as such Rule. 

“RULE 415” means Rule 415
promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the Commission
having substantially the same effect as such Rule. 

“RULE 424” means Rule 424
promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the Commission
having substantially the same effect as such Rule. 

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“SECURITIES ACT” means the
Securities Act of 1933, as amended. 

“SHAREHOLDER APPROVAL DATE”
means the date on which the Company’s stockholders approve the conversion of the
Notes to Preferred Stock pursuant to Section 8.1 of the Notes. 

“SWATW WARRANTS” means the
SWATW Warrants issued to the Investors on the date hereof pursuant to the Purchase
Agreement. 

“UNDERLYING SHARES” means
the shares of Common Stock into which the Preferred Stock is convertible. 

“WARRANTS” means the Common
Stock purchase warrants issued or issuable to the Investors pursuant to the Purchase
Agreement. 

“WARRANT SHARES” means the
shares of Common Stock issued or issuable upon exercise of the Warrants. 

         2.       
          Registration. 

         (a)       
          On or prior to each Filing Date, the Company shall prepare and file with the
          Commission a Registration Statement covering the resale of the Registrable
          Securities required to be included therein and not already covered by an
          existing and effective Registration Statement, for an offering to be made on a
          continuous basis pursuant to Rule 415, on Form S-3 (or on such other form
          appropriate for such purpose). Such Registration Statement shall contain (except
          if otherwise required pursuant to written comments received from the Commission
          upon a review of such Registration Statement) the “Plan of
          Distribution” attached hereto as Annex A. The Company shall cause
          such Registration Statement to be declared effective under the Securities Act as
          soon as possible (including filing with the Commission a request for
          acceleration of effectiveness in accordance with Rule 461 promulgated under the
          Securities Act within five (5) Business Days of the date that the Company is
          notified (orally or in writing, whichever is earlier) by the Commission that a
          Registration Statement will not be “reviewed,” or not be subject to
          further review) but, in any event, no later than its Effectiveness Date, and
          shall use its reasonable best efforts to keep the Registration Statement
          continuously effective under the Securities Act until the date which is the
          earlier of (i) eight years after its Effective Date, (ii) such time as all of
          the Registrable Securities covered by such Registration Statement have been
          publicly sold by the Holders, or (iii) such time as all of the Registrable
          Securities covered by such Registration Statement may be sold by the Holders
          pursuant to Rule 144(k) as determined by the counsel to the Company pursuant to
          a written opinion letter to such effect, addressed and acceptable to the
          Company’s transfer agent and the affected Holders (the "EFFECTIVENESS PERIOD").

         (b)       
          If for any reason the Commission does not permit all of the Registrable
          Securities to be included in the Registration Statement filed pursuant to
          Section 2(a), or for any other reason any outstanding Registrable Securities are
          not then covered by an effective Registration Statement, then the Company shall
          prepare and file by the Filing Date for such Registration Statement, an
          additional Registration Statement covering the resale of all Registrable
          Securities not already covered by an existing and effective Registration
          Statement for an offering to be made on a continuous basis pursuant to Rule 415,
          on Form S-3 (or on such other form appropriate for such purpose). Each such
          Registration Statement shall contain (except if otherwise required pursuant to
          written comments received from the Commission upon a review of such Registration
          Statement) the “Plan of Distribution” attached hereto as Annex
          A. The Company shall cause each such Registration Statement to be declared
          effective under the Securities Act as soon as possible (including filing with
          the Commission a request for acceleration of effectiveness in accordance with
          Rule 461 promulgated under the Securities Act within five (5) Business Days of
          the date that the Company is notified (orally or in writing, whichever is
          earlier) by the Commission that a Registration Statement will not be
          “reviewed,” or not be subject to further review) but, in any event, by
          its Effectiveness Date, and shall use its reasonable best efforts to keep such
          Registration Statement continuously effective under the Securities Act during
          the entire Effectiveness Period. 

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         (c)       
          If (i) a Registration Statement is not filed on or prior to its Filing Date or
          (ii) with respect to a Registration Statement required to be filed pursuant to
          Sections 2(a) or 2(b), the Effective Date of the Registration Statement is later
          than 180 days after the Shareholder Approval Date (such failure or breach being
          referred to as an “EVENT” and the date on which such Event occurs,
          being referred to as the “EVENT DATE”), then in addition to any other
          rights the Holders may have hereunder or under applicable law, the Company shall
          pay to the Holders, as liquidated damages and not as a penalty, a fee (payable
          in cash) equal to the product of (w) 2%, multiplied by (x) the number of months,
          or portion thereof that the Filing Date or the Effective Date is delayed (but
          not to exceed five months), multiplied by (y) the number of Warrant Shares or
          Underlying Shares subject to such Registration Statement, and multiplied by (z)
          $3.00; provided, however, that notwithstanding anything to the contrary
          contained in this Section 2(c), liquidated damages shall not be
          payable by the Company in the event the SEC does not declare the applicable
          Registration Statement effective within 180 days after
          the Shareholder Approval Date and the basis for the SEC’s refusal to
          declare such Registration Statement effective is limitations imposed by Rule
          415, in which event the Company shall use its reasonable best efforts to
          register as many shares of such Registrable Securities as is practicable in as
          short a period of time as is practicable; and, provided further, that the
          Investors acknowledge and agree that the Company may be required by the SEC
          under Rule 415 to file multiple Registration Statements over an extended period
          of time in order to register the resale of all Registrable Securities and
          may in fact never be able to fully register such securities for re-sale. In no
          event will the aggregate fee payable by the Company under this Section 2(c)
          exceed 10% of the principal amount of the Notes held by the Holders. 

         (e)       
          Each Holder agrees to furnish to the Company a completed Questionnaire in the
          form attached to this Agreement as Annex B (a “SELLING HOLDER
          QUESTIONNAIRE”). The Company shall not be required to include the
          Registrable Securities of a Holder in a Registration Statement and shall not be
          required to pay any damages under Section 2(c) to any Holder who fails to
          furnish to the Company a fully completed Selling Holder Questionnaire at least
          two Trading days prior to the Filing Date (subject to the requirements set forth
          in Section 3(a)). 

         (f)       
          For purposes of the obligations of the Company under this Agreement, no
          Registration Statement shall be considered “effective” with respect to
          any Registrable Securities unless such Registration Statement lists the Holders
          of such Registrable Securities as “Selling Stockholders” and includes
          such other information as is required to be disclosed with respect to such
          Holders to permit them to sell their Registrable Securities pursuant to such
          Registration Statement. Such Registration Statement also shall cover, to the
          extent allowable under the Securities Act and the Rules promulgated thereunder
          (including Securities Act Rule 416), such indeterminate number of additional
          shares of Common Stock resulting from stock splits, stock dividends or similar
          transactions with respect to the Registrable Securities. 

         3.       
          Registration Procedures. In connection with the Company’s
          registration obligations hereunder, the Company shall: 

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         (a)       
          Not less than four Trading days prior to the filing of the Registration
          Statement or any related Prospectus or any amendment or supplement thereto, the
          Company shall furnish to each Holder copies of the “Selling
          Stockholders” section of such document, the “Plan of
          Distribution” and any risk factor contained in such document that addresses
          specifically this transaction or the Selling Stockholders, as proposed to be
          filed which documents will be subject to the review of such Holder. The Company
          shall not file a Registration Statement, any Prospectus or any amendments or
          supplements thereto in which the “Selling Stockholder” section thereof
          differs from the disclosure received from a Holder in its Selling Holder
          Questionnaire (as amended or supplemented). 

         (b)       
          Prepare and file with the Commission such amendments, including post-effective
          amendments, to each Registration Statement and the Prospectus used in connection
          therewith as may be necessary to keep such Registration Statement continuously
          effective as to the applicable Registrable Securities for its Effectiveness
          Period and prepare and file with the Commission such additional Registration
          Statements in order to register for resale under the Securities Act all of the
          Registrable Securities; (ii) cause the related Prospectus to be amended or
          supplemented by any required Prospectus supplement, and as so supplemented or
          amended to be filed pursuant to Rule 424; (iii) respond as promptly as
          reasonably possible to any comments received from the Commission with respect to
          each Registration Statement or any amendment thereto and, as promptly as
          reasonably possible provide the Holders true and complete copies of all
          correspondence from and to the Commission relating to such Registration
          Statement that would not result in the disclosure to the Holders of material and
          non-public information concerning the Company; and (iv) comply in all material
          respects with the provisions of the Securities Act and the Exchange Act with
          respect to the Registration Statements and the disposition of all Registrable
          Securities covered by each Registration Statement. 

         (c)       
          Notify the Holders as promptly as reasonably possible (and, in the case of
          (i)(A) below, not less than three Trading days prior to such filing) and (if
          requested by any such Person) confirm such notice in writing no later than one
          Trading day following the day (i)(A) when a Prospectus or any Prospectus
          supplement or post-effective amendment to a Registration Statement is proposed
          to be filed; (B) when the Commission notifies the Company whether there will be
          a “review” of such Registration Statement and whenever the Commission
          comments in writing on such Registration Statement (the Company shall provide
          true and complete copies thereof and all written responses thereto to each of
          the Holders that pertain to the Holders as a Selling Stockholder or to the Plan
          of Distribution, but not information which the Company believes would constitute
          material and non-public information); and (C) with respect to each Registration
          Statement or any post-effective amendment, when the same has become effective;
          (ii) of any request by the Commission or any other federal or state governmental
          authority for amendments or supplements to a Registration Statement or
          Prospectus or for additional information; (iii) of the issuance by the
          Commission of any stop order suspending the effectiveness of a Registration
          Statement covering any or all of the Registrable Securities or the initiation of
          any Proceedings for that purpose; (iv) of the receipt by the Company of any
          notification with respect to the suspension of the qualification or exemption
          from qualification of any of the Registrable Securities for sale in any
          jurisdiction, or the initiation or threatening of any Proceeding for such
          purpose; and (v) of the occurrence of any event or passage of time that makes
          the financial statements included in a Registration Statement ineligible for
          inclusion therein or any statement made in such Registration Statement or
          Prospectus or any document incorporated or deemed to be incorporated therein by
          reference untrue in any material respect or that requires any revisions to such
          Registration Statement, Prospectus or other documents so that, in the case of
          such Registration Statement or the Prospectus, as the case may be, it will not
          contain any untrue statement of a material fact or omit to state any material
          fact required to be stated therein or necessary to make the statements therein,
          in light of the circumstances under which they were made, not misleading. 

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         (d)       
          Use its reasonable best efforts to avoid the issuance of, or, if issued, obtain
          the withdrawal of (i) any order suspending the effectiveness of a Registration
          Statement, or (ii) any suspension of the qualification (or exemption from
          qualification) of any of the Registrable Securities for sale in any
          jurisdiction, at the earliest practicable moment. 

         (e)       
          Furnish to each Holder, without charge, at least one conformed copy of each
          Registration Statement and each amendment thereto and all exhibits to the extent
          requested by such Person (including those previously furnished) promptly after
          the filing of such documents with the Commission. 

         (f)       
          Promptly deliver to each Holder, without charge, as many copies of each
          Prospectus or Prospectuses (including each form of prospectus) and each
          amendment or supplement thereto as such Persons may reasonably request. The
          Company hereby consents to the use of such Prospectus and each amendment or
          supplement thereto by each of the selling Holders in connection with the
          offering and sale of the Registrable Securities covered by such Prospectus and
          any amendment or supplement thereto. 

         (g)       
          Prior to any public offering of Registrable Securities, to register or qualify
          or cooperate with the selling Holders in connection with the registration or
          qualification (or exemption from such registration or qualification) of such
          Registrable Securities for offer and sale under the securities or Blue Sky laws
          of all jurisdictions within the United States, to keep each such registration or
          qualification (or exemption therefrom) effective during the Effectiveness Period
          and to do any and all other acts or things necessary or advisable to enable the
          disposition in such jurisdictions of the Registrable Securities covered by the
          Registration Statements. 

         (h)       
          Cooperate with the Holders to facilitate the timely preparation and delivery of
          certificates representing Registrable Securities to be delivered to a transferee
          pursuant to the Registration Statements, which certificates shall be free, to
          the extent permitted by the Subscription Agreement, of all restrictive legends,
          and to enable such Registrable Securities to be in such denominations and
          registered in such names as any such Holders may request. 

         (i)       
          Upon the occurrence of any event contemplated by Section 3(c)(v), as promptly as
          reasonably possible, prepare a supplement or amendment, including a
          post-effective amendment, to the affected Registration Statements or a
          supplement to the related Prospectus or any document incorporated or deemed to
          be incorporated therein by reference, and file any other required document so
          that, as thereafter delivered, no Registration Statement nor any Prospectus will
          contain an untrue statement of a material fact or omit to state a material fact
          required to be stated therein or necessary to make the statements therein, in
          light of the circumstances under which they were made, not misleading. 

         (j)       
          If requested by any Holder of Registrable Securities, (i) promptly incorporate
          in a Prospectus supplement or post-effective amendment to the Registration
          Statement such information as the Company reasonably agrees should be included
          therein and (ii) make all required filings of such Prospectus supplement or such
          post-effective amendment as soon as practicable after the Company has received
          notification of the matters to be incorporated in such Prospectus supplement or
          post-effective amendment. 

         (k)       
          Cause all Registrable Securities relating to such Registration Statement to be
          listed on the Nasdaq Stock Market and any other United States securities
          exchange, quotation system, market or over-the-counter bulletin board, if any,
          on which similar securities issued by the Company are then listed. 

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         4.       
          Registration Expenses. All fees and expenses incident to the performance
          of or compliance with this Agreement by the Company shall be borne by the
          Company whether or not any Registrable Securities are sold pursuant to a
          Registration Statement. The fees and expenses referred to in the foregoing
          sentence shall include, without limitation, (i) all registration and filing fees
          (including, without limitation, fees and expenses (A) with respect to filings
          required to be made with any Trading Market on which the Common Stock is then
          listed for trading, and (B) in compliance with applicable state securities or
          Blue Sky laws), (ii) printing expenses (including, without limitation, expenses
          of printing certificates for Registrable Securities and of printing prospectuses
          if the printing of prospectuses is reasonably requested by the holders of a
          majority of the Registrable Securities included in the Registration Statement),
          (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of
          counsel for the Company, (v) Securities Act liability insurance, if the Company
          so desires such insurance, and (vi) fees and expenses of all other Persons
          retained by the Company in connection with the consummation of the transactions
          contemplated by this Agreement. In addition, the Company shall be responsible
          for all of its internal expenses incurred in connection with the consummation of
          the transactions contemplated by this Agreement (including, without limitation,
          all salaries and expenses of its officers and employees performing legal or
          accounting duties), the expense of any annual audit and the fees and expenses
          incurred in connection with the listing of the Registrable Securities on any
          securities exchange as required hereunder. The Company shall not be required to
          pay any out-of-pocket expenses incurred by the Holders of Registrable
          Securities. 

         5.       
          Indemnification. 

         (a)       
          Indemnification by the Company. The Company shall, notwithstanding any
          termination of this Agreement, indemnify and hold harmless each Holder, the
          officers, directors, agents, investment advisors, partners, members and
          employees of each of them, each Person who controls any such Holder (within the
          meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
          and the officers, directors, agents and employees of each such controlling
          Person, to the fullest extent permitted by applicable law, from and against any
          and all losses, claims, damages, liabilities, costs (including, without
          limitation, reasonable costs of preparation and reasonable attorneys’ fees)
          and expenses (collectively, “LOSSES”), as incurred, arising out of or
          relating to any untrue or alleged untrue statement of a material fact contained
          or incorporated by reference in any Registration Statement, any Prospectus or
          any form of prospectus or in any amendment or supplement thereto or in any
          preliminary prospectus, or arising out of or relating to any omission or alleged
          omission of a material fact required to be stated therein or necessary to make
          the statements therein (in the case of any Prospectus or form of prospectus or
          supplement thereto, in light of the circumstances under which they were made)
          not misleading, except to the extent, but only to the extent, that (1) such
          untrue statements or omissions are based solely upon information regarding such
          Holder furnished in writing to the Company by such Holder expressly for use
          therein, or to the extent that such information relates to such Holder or such
          Holder’s proposed method of distribution of Registrable Securities and was
          reviewed and expressly approved in writing by such Holder expressly for use in
          the Registration Statement, such Prospectus or such form of Prospectus or in any
          amendment or supplement thereto (it being understood that the Holder has
          approved Annex A hereto for this purpose) or (2) in the case of an
          occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by
          such Holder of an outdated or defective Prospectus after the Company has
          notified such Holder in writing that the Prospectus is outdated or defective and
          prior to the receipt by such Holder of an Advice or an amended or supplemented
          Prospectus, but only if and to the extent that following the receipt of the
          Advice or the amended or supplemented Prospectus the misstatement or omission
          giving rise to such Loss would have been corrected. The Company shall notify the
          Holders promptly of the institution, threat or assertion of any Proceeding of
          which the Company is aware in connection with the transactions contemplated by
          this Agreement. Such indemnity shall remain in full force and effect regardless
          of any investigation made by or on behalf of an Indemnified Party (as defined in
          Section 5(c) to this Agreement) and shall survive the transfer of the
          Registrable Securities by the Holders. 

-7- 

         (b)       
          Indemnification by Holders. Each Holder shall, severally and not jointly,
          indemnify and hold harmless the Company, its directors, officers, agents and
          employees, each Person who controls the Company (within the meaning of Section
          15 of the Securities Act and Section 20 of the Exchange Act), and the directors,
          officers, agents or employees of such controlling Persons, to the fullest extent
          permitted by applicable law, from and against all Losses, as incurred, arising
          solely out of or based solely upon: (x) such Holder’s failure to comply
          with the prospectus delivery requirements of the Securities Act or (y) any
          untrue statement of a material fact contained in any Registration Statement, any
          Prospectus, or any form of prospectus, or in any amendment or supplement
          thereto, or arising solely out of or based solely upon any omission of a
          material fact required to be stated therein or necessary to make the statements
          therein not misleading to the extent, but only to the extent that, (1) such
          untrue statements or omissions are based solely upon information regarding such
          Holder furnished in writing to the Company by such Holder expressly for use
          therein, or to the extent that such information relates to such Holder or such
          Holder’s proposed method of distribution of Registrable Securities and was
          reviewed and expressly approved in writing by such Holder expressly for use in
          the Registration Statement (it being understood that the Holder has approved
          Annex A hereto for this purpose), such Prospectus or such form of
          Prospectus or in any amendment or supplement thereto or (2) in the case of an
          occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by
          such Holder of an outdated or defective Prospectus after the Company has
          notified such Holder in writing that the Prospectus is outdated or defective and
          prior to the receipt by such Holder of an Advice or an amended or supplemented
          Prospectus, but only if and to the extent that following the receipt of the
          Advice or the amended or supplemented Prospectus the misstatement or omission
          giving rise to such Loss would have been corrected. In no event shall the
          liability of any selling Holder hereunder be greater in amount than the dollar
          amount of the net proceeds received by such Holder upon the sale of the
          Registrable Securities giving rise to such indemnification obligation. 

         (c)       
          Conduct of Indemnification Proceedings. If any Proceeding shall be
          brought or asserted against any Person entitled to indemnity hereunder (an
          “INDEMNIFIED PARTY”), such Indemnified Party shall promptly notify the
          Person from whom indemnity is sought (the “INDEMNIFYING PARTY”) in
          writing, and the Indemnifying Party shall assume the defense thereof, including
          the employment of counsel reasonably satisfactory to the Indemnified Party and
          the payment of all fees and expenses incurred in connection with defense
          thereof; provided, that the failure of any Indemnified Party to give such notice
          shall not relieve the Indemnifying Party of its obligations or liabilities
          pursuant to this Agreement, except (and only) to the extent that it shall be
          finally determined by a court of competent jurisdiction (which determination is
          not subject to appeal or further review) that such failure shall have
          proximately and materially adversely prejudiced the Indemnifying Party. 

-8- 

        An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel shall
be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party
has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have
failed promptly to assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to
any such Proceeding (including any impleaded parties) include both such Indemnified Party
and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel
that a conflict of interest is likely to exist if the same counsel were to represent such
Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party
notifies the Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to
assume the defense thereof and such counsel shall be at the expense of the Indemnifying
Party). The Indemnifying Party shall not be liable for any settlement of any such
Proceeding effected without its written consent, which consent shall not be unreasonably
withheld. No Indemnifying Party shall, without the prior written consent of the
Indemnified Party (which consent shall not be unreasonably withheld), effect any
settlement of any pending Proceeding in respect of which any Indemnified Party is a party,
unless such settlement includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such Proceeding and does not impose
any monetary or other obligation or restriction on the Indemnified Party. 

        All
fees and expenses of the Indemnified Party (including reasonable fees and expenses to the
extent incurred in connection with investigating or preparing to defend such Proceeding in
a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within ten Trading days of written notice thereof to the Indemnifying Party
(regardless of whether it is ultimately determined that an Indemnified Party is not
entitled to indemnification hereunder; provided, that the Indemnifying Party may require
such Indemnified Party to undertake to reimburse all such fees and expenses to the extent
it is finally judicially determined that such Indemnified Party is not entitled to
indemnification hereunder). 

         (d)       
          Contribution. If a claim for indemnification under Section 5(a) or 5(b)
          is unavailable to an Indemnified Party (by reason of public policy or
          otherwise), then each Indemnifying Party, in lieu of indemnifying such
          Indemnified Party, shall contribute to the amount paid or payable by such
          Indemnified Party as a result of such Losses, in such proportion as is
          appropriate to reflect the relative fault of the Indemnifying Party and
          Indemnified Party in connection with the actions, statements or omissions that
          resulted in such Losses as well as any other relevant equitable considerations.
          The relative fault of such Indemnifying Party and Indemnified Party shall be
          determined by reference to, among other things, whether any action in question,
          including any untrue or alleged untrue statement of a material fact or omission
          or alleged omission of a material fact, has been taken or made by, or relates to
          information supplied by, such Indemnifying Party or Indemnified Party, and the
          parties’ relative intent, knowledge, access to information and opportunity
          to correct or prevent such action, statement or omission. The amount paid or
          payable by a party as a result of any Losses shall be deemed to include, subject
          to the limitations set forth in Section 5(c), any reasonable attorneys’ or
          other reasonable fees or expenses incurred by such party in connection with any
          Proceeding to the extent such party would have been indemnified for such fees or
          expenses if the indemnification provided for in this Section was available to
          such party in accordance with its terms. 

        The
parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 5(d) were determined by pro rata allocation or by any other method of
allocation that does not take into account the equitable considerations referred to in the
immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no
Holder shall be required to contribute, in the aggregate, any amount in excess of the
amount by which the proceeds actually received by such Holder from the sale of the
Registrable Securities subject to the Proceeding exceeds the amount of any damages that
such Holder has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. 

-9- 

        The
indemnity and contribution agreements contained in this Section are in addition to any
liability that the Indemnifying Parties may have to the Indemnified Parties. 

         6.       
          Miscellaneous. 

         (a)       
          Remedies. In the event of a breach by the Company or by a Holder, of any
          of their obligations under this Agreement, each Holder or the Company, as the
          case may be, in addition to being entitled to exercise all rights granted by law
          and under this Agreement, including recovery of damages, will be entitled to
          specific performance of its rights under this Agreement. The Company and each
          Holder agree that monetary damages would not provide adequate compensation for
          any losses incurred by reason of a breach by it of any of the provisions of this
          Agreement and hereby further agrees that, in the event of any action for
          specific performance in respect of such breach, it shall waive the defense that
          a remedy at law would be adequate. 

         (b)       
          No Piggyback on Registrations. Neither the Company nor any of its
          security holders (other than the Holders in such capacity pursuant hereto) may
          include securities of the Company in a Registration Statement other than the
          Registrable Securities. 

         (c)       
          Compliance. Each Holder covenants and agrees that it will comply with the
          prospectus delivery requirements of the Securities Act as applicable to it in
          connection with sales of Registrable Securities pursuant to the Registration
          Statement. 

         (d)       
          Discontinued Disposition. Each Holder agrees by its acquisition of such
          Registrable Securities that, upon receipt of a notice from the Company of the
          occurrence of any event of the kind described in Section 3(c), such Holder will
          forthwith discontinue disposition of such Registrable Securities under the
          Registration Statement until such Holder’s receipt of the copies of the
          supplemented Prospectus and/or amended Registration Statement or until it is
          advised in writing (the “ADVICE”) by the Company that the use of the
          applicable Prospectus may be resumed, and, in either case, has received copies
          of any additional or supplemental filings that are incorporated or deemed to be
          incorporated by reference in such Prospectus or Registration Statement. The
          Company may provide appropriate stop orders to enforce the provisions of this
          paragraph. 

         (e)       
          Piggy-Back Registrations. If at any time during the Effectiveness Period
          there is not an effective Registration Statement covering all of the Registrable
          Securities and the Company shall determine to prepare and file with the
          Commission a registration statement relating to an offering for its own account
          or the account of others under the Securities Act of any of its equity
          securities, other than on Form S-4 or Form S-8 (each as promulgated under the
          Securities Act) or their then equivalents relating to equity securities to be
          issued solely in connection with any acquisition of any entity or business or
          equity securities issuable in connection with stock option or other employee
          benefit plans, then the Company shall send to each Holder written notice of such
          determination and, if within fifteen days after receipt of such notice, any such
          Holder shall so request in writing, the Company shall include in such
          registration statement all or any part of such Registrable Securities such
          holder requests to be registered, subject to customary underwriter cutbacks
          applicable to all holders of registration rights. 

         (f)       
          Amendments and Waivers. The provisions of this Agreement, including the
          provisions of this Section 6(f), may not be amended, modified or supplemented,
          and waivers or consents to departures from the provisions hereof may not be
          given, unless the same shall be in writing and signed by the Company and the
          Holders of no less than a majority in interest of the then outstanding
          Registrable Securities. Notwithstanding the foregoing, a waiver or consent to
          depart from the provisions hereof with respect to a matter that relates
          exclusively to the rights of certain Holders and that does not directly or
          indirectly affect the rights of other Holders may be given by Holders of at
          least a majority of the Registrable Securities to which such waiver or consent
          relates. 

-10- 

         (g)       
          Notices. Any and all notices or other communications or deliveries
          required or permitted to be provided hereunder shall be in writing and shall be
          deemed given and effective on the earliest of (a) the date of transmission, if
          such notice or communication is delivered via facsimile (provided the sender
          receives a machine-generated confirmation of successful transmission) at the
          facsimile number specified in this Section prior to 6:30 p.m. (New York City
          time) on a Trading day, (b) the next Trading day after the date of transmission,
          if such notice or communication is delivered via facsimile at the facsimile
          number specified in this Section on a day that is not a Trading day or later
          than 6:30 p.m. (New York City time) on any Trading day, (c) the Trading day
          following the date of mailing, if sent by U.S. nationally recognized overnight
          courier service, or (d) upon actual receipt by the party to whom such notice is
          required to be given. The address for such notices and communications shall be
          as follows: 

		
		If to the Company:

Security With Advanced Technology, Inc.

10855 Dover Street, Suite 100

Westminster, CO 80021

Attention: Chief Financial Officer

Facsimile No.: (303) 722-4011

If to an Investor:

To the address set forth under such Investor's name on the

signature pages hereto.

        If
to any other Person who is then the registered Holder: 

        To
the address of such Holder as it appears in the stock transfer books of the Company or
such other address as may be designated in writing hereafter, in the same manner, by such
Person.  

         (h)       
          Successors and Assigns. This Agreement shall inure to the benefit of and
          be binding upon the successors and permitted assigns of each of the parties and
          shall inure to the benefit of each Holder and its successors and valid assigns.
          The Company may not assign its rights or obligations hereunder without the prior
          written consent of each Holder. 

         (i)       
          Execution and Counterparts. This Agreement may be executed in any number
          of counterparts, each of which when so executed shall be deemed to be an
          original and, all of which taken together shall constitute one and the same
          Agreement. In the event that any signature is delivered by facsimile
          transmission, such signature shall create a valid binding obligation of the
          party executing (or on whose behalf such signature is executed) the same with
          the same force and effect as if such facsimile signature were the original
          thereof. 

-11- 

         (j)       
          Governing Law. All questions concerning the construction, validity,
          enforcement and interpretation of this Agreement shall be governed by and
          construed and enforced in accordance with the internal laws of the State of
          Colorado, without regard to the principles of conflicts of law thereof. Each
          party agrees that all Proceedings concerning the interpretations, enforcement
          and defense of the transactions contemplated by this Agreement (whether brought
          against a party hereto or its respective Affiliates, employees or agents) will
          be commenced in the district court for Denver County, Colorado. Each party
          hereto hereby irrevocably submits to the exclusive jurisdiction of the Colorado
          courts for the adjudication of any dispute hereunder or in connection herewith
          or with any transaction contemplated hereby or discussed herein, and hereby
          irrevocably waives, and agrees not to assert in any Proceeding, any claim that
          it is not personally subject to the jurisdiction of any Colorado court, or that
          such Proceeding has been commenced in an improper or inconvenient forum. Each
          party hereto hereby irrevocably waives personal service of process and consents
          to process being served in any such Proceeding by mailing a copy thereof via
          registered or certified mail or overnight delivery (with evidence of delivery)
          to such party at the address in effect for notices to it under this Agreement
          and agrees that such service shall constitute good and sufficient service of
          process and notice thereof. Nothing contained herein shall be deemed to limit in
          any way any right to serve process in any manner permitted by law. Each party
          hereto hereby irrevocably waives, to the fullest extent permitted by applicable
          law, any and all right to trial by jury in any Proceeding arising out of or
          relating to this Agreement or the transactions contemplated hereby. If either
          party shall commence a Proceeding to enforce any provisions of this Agreement,
          then the prevailing party in such Proceeding shall be reimbursed by the other
          party for its attorney’s fees and other costs and expenses incurred with
          the investigation, preparation and prosecution of such Proceeding. 

         (k)       
          Cumulative Remedies. The remedies provided herein are cumulative and not
          exclusive of any remedies provided by law. 

         (l)       
          Severability. If any term, provision, covenant or restriction of this
          Agreement is held by a court of competent jurisdiction to be invalid, illegal,
          void or unenforceable, the remainder of the terms, provisions, covenants and
          restrictions set forth herein shall remain in full force and effect and shall in
          no way be affected, impaired or invalidated, and the parties hereto shall use
          their reasonable efforts to find and employ an alternative means to achieve the
          same or substantially the same result as that contemplated by such term,
          provision, covenant or restriction. It is hereby stipulated and declared to be
          the intention of the parties that they would have executed the remaining terms,
          provisions, covenants and restrictions without including any of such that may be
          hereafter declared invalid, illegal, void or unenforceable. 

         (m)       
          Headings. The headings in this Agreement are for convenience of reference
          only and shall not limit or otherwise affect the meaning hereof. 

         (n)       
          Independent Nature of Investors’ Obligations and Rights. The
          obligations of each Investor under this Agreement are several and not joint with
          the obligations of each other Investor, and no Investor shall be responsible in
          any way for the performance of the obligations of any other Investor under this
          Agreement. Nothing contained herein or in any Transaction Document, and no
          action taken by any Investor pursuant thereto, shall be deemed to constitute the
          Investors as a partnership, an association, a joint venture or any other kind of
          entity, or create a presumption that the Investors are in any way acting in
          concert or as a group with respect to such obligations or the transactions
          contemplated by this Agreement or any other Transaction Document. Each Investor
          acknowledges that no other Investor will be acting as agent of such Investor in
          enforcing its rights under this Agreement. Each Investor shall be entitled to
          independently protect and enforce its rights, including without limitation the
          rights arising out of this Agreement, and it shall not be necessary for any
          other Investor to be joined as an additional party in any Proceeding for such
          purpose. The Company acknowledges that each of the Investors has been provided
          with the same Registration Rights Agreement for the purpose of closing a
          transaction with multiple Investors and not because it was required or requested
          to do so by any Investor. 

-12- 

        IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first written above. 

		
		SECURITY WITH ADVANCED TECHNOLOGY, INC.

By:                                     

Name:  Jeffrey G. McGonegal

Title:   Chief Financial Officer

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK
SIGNATURE PAGES OF INVESTORS TO FOLLOW] 

-13- 

IN WITNESS WHEREOF, the parties have
executed this Registration Rights Agreement as of the date first written above. 

VISION OPPORTUNITY MASTER
FUND, LTD.  

__________________________________________

                                                 (Print name) 

By: __________________________________________

                                                                 (Signature) 

Title: __________________________________________ 

ADDRESS FOR NOTICE 
c/o: __________________________________________

Street: ________________________________________

City/State/Zip: ___________________________________

Attention: ______________________________________

Tel: __________________________________________

Fax: __________________________________________

Email: __________________________________________  

-14- 

LAZARUS INVESTMENT
PARTNERS LLLP 

__________________________________________

                                                 (Print name) 

By: __________________________________________

                                                                 (Signature) 

Title: __________________________________________ 

ADDRESS FOR NOTICE 
c/o: __________________________________________

Street: ________________________________________

City/State/Zip: ___________________________________

Attention: ______________________________________

Tel: __________________________________________

Fax: __________________________________________

Email: __________________________________________  

-15- 

THE PEIERLS
FOUNDATION, INC. 

__________________________________________

                                                 (Print name) 

By: __________________________________________

                                                                 (Signature) 

Title: __________________________________________ 

ADDRESS FOR NOTICE 
c/o: __________________________________________

Street: ________________________________________

City/State/Zip: ___________________________________

Attention: ______________________________________

Tel: __________________________________________

Fax: __________________________________________

Email: __________________________________________  

-16- 

U.D. ETHEL F. PEIERLS
CHARITABLE LEAD UNITRUST 

__________________________________________

                                                 (Print name) 

By: __________________________________________

                                                                 (Signature) 

Title: __________________________________________ 

ADDRESS FOR NOTICE 
c/o: __________________________________________

Street: ________________________________________

City/State/Zip: ___________________________________

Attention: ______________________________________

Tel: __________________________________________

Fax: __________________________________________

Email: __________________________________________  

-17- 

E. JEFFREY PEIERLS 

__________________________________________ 

ADDRESS FOR NOTICE 
c/o: __________________________________________

Street: ________________________________________

City/State/Zip: ___________________________________

Attention: ______________________________________

Tel: __________________________________________

Fax: __________________________________________

Email: __________________________________________  

-18- 

BRIAN E. PEIERLS 

__________________________________________ 

ADDRESS FOR NOTICE 
c/o: __________________________________________

Street: ________________________________________

City/State/Zip: ___________________________________

Attention: ______________________________________

Tel: __________________________________________

Fax: __________________________________________

Email: __________________________________________  

-19- 

U. D. J. N. PEIERLS
FOR B. E. PEIERLS 

__________________________________________

                                                 (Print name) 

By: __________________________________________

                                                                 (Signature) 

Title: __________________________________________ 

ADDRESS FOR NOTICE 
c/o: __________________________________________

Street: ________________________________________

City/State/Zip: ___________________________________

Attention: ______________________________________

Tel: __________________________________________

Fax: __________________________________________

Email: __________________________________________  

-20- 

U. D. J. N. PEIERLS
FOR E. J. PEIERLS 

__________________________________________

                                                 (Print name) 

By: __________________________________________

                                                                 (Signature) 

Title: __________________________________________ 

ADDRESS FOR NOTICE 
c/o: __________________________________________

Street: ________________________________________

City/State/Zip: ___________________________________

Attention: ______________________________________

Tel: __________________________________________

Fax: __________________________________________

Email: __________________________________________  

-21- 

__________________________________________

__________________________________________

                                                 (Print name) 

By: __________________________________________

                                                                 (Signature) 

Title: __________________________________________ 

ADDRESS FOR NOTICE 
c/o: __________________________________________

Street: ________________________________________

City/State/Zip: ___________________________________

Attention: ______________________________________

Tel: __________________________________________

Fax: __________________________________________

Email: __________________________________________  

-22- 

__________________________________________

__________________________________________

                                                 (Print name) 

By: __________________________________________

                                                                 (Signature) 

Title: __________________________________________ 

ADDRESS FOR NOTICE 
c/o: __________________________________________

Street: ________________________________________

City/State/Zip: ___________________________________

Attention: ______________________________________

Tel: __________________________________________

Fax: __________________________________________

Email: __________________________________________  

-23- 

Annex A 

Plan of Distribution 

The Selling Stockholders and any of
their pledgees, donees, transferees, assignees and successors-in-interest may, from time
to time, sell any or all of their shares of Common Stock on any stock exchange, market or
trading facility on which the shares are traded or in private transactions. These sales
may be at fixed or negotiated prices. The Selling Stockholders may use any one or more of
the following methods when selling shares: 

	 	•  	ordinary
brokerage transactions and transactions in which the broker-dealer solicits Investors; 

	 	•  	block
trades in which the broker-dealer will attempt to sell the shares as agent but may
position and resell a portion of the block as principal to facilitate the transaction;  

	 	•  	purchases
by a broker-dealer as principal and resale by the broker-dealer for its account; 

	 	•  	an
exchange distribution in accordance with the rules of the applicable exchange; 

	 	•  	privately
negotiated transactions; 

	 	•  	to
cover short sales made after the date that this Registration Statement is declared
effective by the          Commission; 

	 	•  	broker-dealers
may agree with the Selling Stockholders to sell a specified number of such shares at a
         stipulated price per share; 

	 	•  	a
combination of any such methods of sale; and 

	 	•  	any
other method permitted pursuant to applicable law. 

The Selling Stockholders may also
sell shares under Rule 144 under the Securities Act, if available, rather than under this
prospectus. 

Broker-dealers engaged by the Selling
Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers
may receive commissions or discounts from the Selling Stockholders (or, if any
broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to
be negotiated. The Selling Stockholders do not expect these commissions and discounts to
exceed what is customary in the types of transactions involved. 

The Selling Stockholders may from
time to time pledge or grant a security interest in some or all of the shares owned by
them and, if they default in the performance of their secured obligations, the pledgees or
secured parties may offer and sell shares of Common Stock from time to time under this
prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other
applicable provision of the Securities Act of 1933 amending the list of selling
stockholders to include the pledgee, transferee or other successors in interest as selling
stockholders under this prospectus. upon the Company being notified in writing by a
Selling Stockholder that any material arrangement has been entered into with a
broker-dealer for the sale of Common Stock through a block trade, special offering,
exchange distribution or secondary distribution or a purchase by a broker or dealer, a
supplement to this prospectus will be filed, if required, pursuant to Rule 424(b) under
the Securities Act, disclosing (i) the name of each such Selling Stockholder and of the
participating broker-dealer(s), (ii) the number of shares involved, (iii) the price at
which such the shares of Common Stock were sold, (iv)the commissions paid or discounts or
concessions allowed to such broker-dealer(s), where applicable, (v) that such
broker-dealer(s) did not conduct any investigation to verify the information set out or
incorporated by reference in this prospectus, and (vi) other facts material to the
transaction. In addition, upon the Company being notified in writing by a Selling
Stockholder that a donee or pledgee intends to sell more than 500 shares of Common Stock,
a supplement to this prospectus will be filed if then required in accordance with
applicable securities law. 

-24- 

The Selling Stockholders also may
transfer the shares of Common Stock in other circumstances, in which case the transferees,
pledgees or other successors in interest will be the selling beneficial owners for
purposes of this prospectus. 

The Selling Stockholders and any
broker-dealers or agents that are involved in selling the shares may be deemed to be
“underwriters” within the meaning of the Securities Act in connection with such
sales. In such event, any commissions received by such broker-dealers or agents and any
profit on the resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act. Discounts, concessions, commissions and
similar selling expenses, if any, that can be attributed to the sale of Securities will be
paid by the Selling Stockholder and/or the purchasers. Each Selling Stockholder has
represented and warranted to the Company that it acquired the securities subject to this
registration statement in the ordinary course of such Selling Stockholder’s business
and, at the time of its purchase of such securities such Selling Stockholder had no
agreements or understandings, directly or indirectly, with any person to distribute any
such securities. 

The Company has advised each Selling
Stockholder that it may not use shares registered on this Registration Statement to cover
short sales of Common Stock made prior to the date on which this Registration Statement
shall have been declared effective by the Commission. If a Selling Stockholder uses this
prospectus for any sale of the Common Stock, it will be subject to the prospectus delivery
requirements of the Securities Act. The Selling Stockholders will be responsible to comply
with the applicable provisions of the Securities Act and Exchange Act, and the rules and
regulations thereunder promulgated, including, without limitation, Regulation M, as
applicable to such Selling Stockholders in connection with resales of their respective
shares under this Registration Statement. 

The Company is required to pay all
fees and expenses incident to the Company’s registration of the shares, but the
Company will not receive any proceeds from the sale of the Common Stock. The Company has
agreed to indemnify the Selling Stockholders against certain losses, claims, damages and
liabilities, including liabilities under the Securities Act. 

-25- 

Annex B 

Shareholder
Questionnaire 

(See attached) 

-26-Unassociated Document

    
      

      

    

    

      

      

      

      

      

      

      SOLAR
        POWER INTEGRATORS

      GENERAL
        PARTNERSHIP AGREEMENT

      

      By
        and Between

      

      J.R.
        CONKEY & ASSOCIATES, INC.

      and

      SOLAR
        POWER INTEGRATORS, COMMERCIAL, INC.

      

      

      

      

      

      

      

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      TABLE
        OF CONTENTS

      

      
        	
                ARTICLE
                  I

              	
                1

              
	 	
                NATURE
                  OF PARTNERSHIP

              	
                1

              
	 	 	
                1.1

              	
                Formation
                  of General Partnership.

              	
                1

              
	 	 	
                1.2

              	
                Name
                  of Partnership.

              	
                1

              
	 	 	
                1.3

              	
                Purpose
                  of Partnership.

              	
                1

              
	 	 	
                1.4

              	
                Principal
                  Place of Business.

              	
                1

              
	 	 	
                1.5

              	
                Term.

              	
                1

              
	 	 	
                1.6

              	
                Statement
                  of Partnership and Fictitious Business Name Statement.

              	
                2

              
	 	 	
                1.7

              	
                Definitions.

              	
                2

              
	
                ARTICLE
                  II

              	
                4

              
	 	
                ADMISSION
                  OF PARTNERS; MANAGING PARTNER

              	
                4

              
	 	 	
                2.1

              	
                Members
                  of Partnerships.

              	
                4

              
	 	 	
                2.2

              	
                Admission
                  of a Substituted Partner.

              	
                4

              
	 	 	
                2.3

              	
                Assignee
                  Partner.

              	
                5

              
	 	 	
                2.4

              	
                Managing
                  Partner.

              	
                5

              
	
                ARTICLE
                  III

              	
                5

              
	 	
                FINANCIAL

              	
                5

              
	 	 	
                3.1

              	
                Initial
                  Capital Contributions.

              	
                5

              
	 	 	
                3.2

              	
                Loans
                  to Partnership.

              	
                6

              
	 	 	
                3.3

              	
                Additional
                  Capital Contributions.

              	
                6

              
	 	 	
                3.4

              	
                Interest
                  on Capital and Income Accounts.

              	
                9

              
	 	 	
                3.5

              	
                Allocation
                  of Profits and Losses.

              	
                9

              
	 	 	
                3.6

              	
                Computation
                  of Profits and Losses.

              	
                10

              
	 	 	
                3.7

              	
                Required
                  Current Distributions of Net Cash.

              	
                10

              
	 	 	
                3.8

              	
                Discretionary
                  Distribution of Net Cash.

              	
                10

              
	 	 	
                3.9

              	
                Repayment
                  of Loans and Liquidated Damage.

              	
                10

              
	 	 	
                3.10

              	
                Loans
                  by Partners; Default Capital Contribution.

              	
                10

              
	 	 	
                3.11

              	
                Other
                  Distributions and Compensation to Partners and/or
                  Affiliates.

              	
                11

              
	 	 	
                3.12

              	
                Maintenance
                  of Books of Account.

              	
                11

              
	 	 	
                3.13

              	
                Location
                  of Books of Account.

              	
                11

              
	 	 	
                3.14

              	
                Inspection
                  of Books of Account.

              	
                11

              
	 	 	
                3.15

              	
                Method
                  of Accounting.

              	
                11

              

      

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      
        	 	 	
                3.16

              	
                Fiscal
                  Year.

              	
                11

              
	 	 	
                3.17

              	
                Capital
                  Accounts.

              	
                11

              
	 	 	
                3.18

              	
                Financial
                  Statements and Interim Reports.

              	
                12

              
	 	 	
                3.19

              	
                Banking.

              	
                12

              
	
                ARTICLE
                  IV

              	
                12

              
	 	
                RIGHTS,
                  POWERS, DUTIES, AND RESTRICTIONS OF PARTNERS

              	
                12

              
	 	 	
                4.1

              	
                Managing
                  Partner.

              	
                12

              
	 	 	
                4.2

              	
                Specific
                  Duties.

              	
                14

              
	 	 	
                4.3

              	
                General
                  Partners - Devotion of Time to Partnership.

              	
                14

              
	 	 	
                4.4

              	
                Voting
                  Rights of General Partners.

              	
                14

              
	 	 	
                4.5

              	
                General
                  Partners Engaging in Other Business.

              	
                14

              
	
                ARTICLE
                  V

              	
                15

              
	 	
                RESTRICTIONS
                  ON TRANSFERS OF PARTNERSHIP INTERESTS;

              	
                15

              
	 	
                REMOVAL
                  OF PARTNERS

              	
                15

              
	 	 	
                5.1

              	
                Prohibition
                  Against Transfer.

              	
                15

              
	 	 	
                5.2

              	
                Right
                  of First Refusal

              	
                15

              
	 	 	
                5.3

              	
                Death
                  of a Partner.

              	
                16

              
	 	 	
                5.4

              	
                Removal
                  of General Partner.

              	
                16

              
	 	 	
                5.5

              	
                Valuation
                  of Interest

              	
                17

              
	 	 	
                5.6

              	
                Payment
                  of Purchase Price

              	
                17

              
	 	 	
                5.7

              	
                Partnership
                  Assumption of Liabilities

              	
                18

              
	 	 	
                5.8

              	
                Covenant
                  Against Dissolution.

              	
                18

              
	
                ARTICLE
                  VI

              	
                18

              
	 	
                DISSOLUTION
                  OF THE PARTNERSHIP

              	
                18

              
	 	 	
                6.1

              	
                Dissolution
                  and Winding Up.

              	
                18

              
	 	 	
                6.2

              	
                Dissolution
                  Upon Consent.

              	
                18

              
	 	 	
                6.3

              	
                Dissolution
                  Pursuant to California Corporations Code

              	 
	 	 	 	
                Section
                  15031(3) and 15031(5).

              	
                18

              
	 	 	
                6.4

              	
                Dissolution
                  Upon Sale or Disposition.

              	
                19

              
	 	 	
                6.5

              	
                Dissolution
                  Upon Judicial Decree.

              	
                19

              
	 	 	
                6.6

              	
                Responsibility
                  for Winding Up.

              	
                19

              
	 	 	
                6.7

              	
                Liquidation
                  and Distribution.

              	
                19

              
	 	 	
                6.8

              	
                Negative
                  Capital Accounts.

              	
                19

              
	 	 	
                6.9

              	
                Filing
                  Certificate of Dissolution.

              	
                19

              

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      
        	
                ARTICLE
                  VII

              	
                19

              
	 	
                PARTNERSHIP
                  MEETINGS

              	
                19

              
	 	 	
                7.1

              	
                Call
                  and Place of Meetings.

              	
                19

              
	 	 	
                7.2

              	
                Notice
                  of Meeting.

              	
                20

              
	 	 	
                7.3

              	
                Quorum.

              	
                20

              
	 	 	
                7.4

              	
                Adjournment
                  of Meetings.

              	
                20

              
	 	 	
                7.5

              	
                Meetings
                  Not Duly Called, Noticed, or Held.

              	
                20

              
	 	 	
                7.6

              	
                Waiver
                  of Notice.

              	
                21

              
	 	 	
                7.7

              	
                Consent
                  to Action Without Meeting.

              	
                21

              
	 	 	
                7.8

              	
                Proxies.

              	
                21

              
	
                ARTICLE
                  VIII

              	
                22

              
	 	
                MISCELLANEOUS
                  CLAUSES AND REPRESENTATIONS

              	
                22

              
	 	 	
                8.1

              	
                Arbitration;
                  Valuation of Interest.

              	
                22

              
	 	 	
                8.2

              	
                DISPUTE
                  RESOLUTION.

              	
                24

              
	 	 	
                8.3

              	
                Amendments.

              	
                25

              
	 	 	
                8.4

              	
                Indemnification

              	
                25

              
	 	 	
                8.5

              	
                Notices.

              	
                26

              
	 	 	
                8.6

              	
                Governing
                  Law.

              	
                26

              
	 	 	
                8.7

              	
                Binding
                  on Heirs and Successors.

              	
                26

              
	 	 	
                8.8

              	
                Counterparts.

              	
                26

              
	 	 	
                8.9

              	
                Attorneys'
                  Fees.

              	
                26

              
	 	 	
                8.10

              	
                Coordination
                  with Uniform Partnership Act.

              	
                27

              
	 	 	
                8.11

              	
                Section
                  754 Election.

              	
                27

              

      

      

    

     

     

    
      

      
        
          
             

          

          
            3

            
              

            

          

          
             

          

        

      

       

      GENERAL
        PARTNERSHIP AGREEMENT

      

      THIS
        AGREEMENT is made and entered into by and between J.R. CONKEY & ASSOCIATES,
        INC., a California corporation (“JRC”), with address at 735 Sunrise Avenue,
        Suite 200, Roseville, California 95661, and SOLAR POWER INTEGRATORS, COMMERCIAL,
        INC., a California corporation (“SPIC”), with address at 4080 Cavitt Stallman
        Road, Suite 100, Granite Bay, California 95746, each of whom has executed
        the
        original or a counterpart of this Agreement.

      In
        consideration of the mutual covenants and conditions contained herein, it
        is
        hereby agreed by and between the parties as follows:

      

      ARTICLE
        I

      NATURE
        OF PARTNERSHIP

      1.1 
          Formation
        of General Partnership.
        JRC and
        SPIC hereby form a General Partnership (hereinafter referred to as "the
        Partnership") pursuant to the provisions of Chapter 1, Title 2 of the
        Corporations Code of the State of California, known as the "Uniform Partnership
        Act" of California.

      1.2    Name
        of Partnership.
        The
        Partnership name shall be SOLAR POWER INTEGRATORS, a California General
        Partnership.

      1.3    Purpose
        of Partnership.
        The
        purpose of the Partnership shall be the sales, design and installation of
        solar
        systems. The Partnership may engage in any other lawful business as from
        time to
        time may be deemed advisable or proper by a majority vote of the General
        Partners.

      1.4    Principal
        Place of Business.
        The
        principal place of business of the Partnership shall be 735 Sunrise Avenue,
        Suite 200, Roseville, California 95661, or at such other place or places
        within
        California as may be determined from time to time by a majority vote of the
        General Partners.

      1.5    Term.
        The
        Partnership shall commence on execution of this Partnership Agreement and
        shall
        continue for a period of thirty (30) years unless sooner dissolved, as
        hereinafter provided.

      

      
        
          
             

          

          
            1

            
              

            

          

          
             

          

        

      

      

      1.6    Statement
        of Partnership and Fictitious Business Name Statement.
        The
        Managing Partner shall (concurrently with the execution of this Agreement)
        sign
        and acknowledge a Statement of Partnership pursuant to the provisions of
        Section
        15010.5 of the Corporations Code of the State of California. Such Statement
        shall be filed for record in the Office of the Recorder for the county in
        which
        the principal place of business of the Partnership is situated, and in the
        Office of the Recorder of each county in which the Partnership shall have
        a
        place of business or in which real property it owns shall be
        situated.

      In
        addition, the General Partners shall file and publish a Statement of Fictitious
        Business Name as required by Sections 17900 through 17930 of the California
        Business and Professions Code and any other notices, certificates, statements
        or
        other instruments required by any provision of any law of the United States
        or
        any state or other jurisdiction which may govern the formation of a Partnership
        or the conduct of its business from time to time.

      1.7    Definitions.
        As used
        herein, the following terms shall have the respective meanings
        indicated:

      A.   "Additional
        Capital" shall mean the amount of cash which may be required to be contributed
        from time to time by the General Partners for the purposes of paying the
        expenses of the Partnership including (without limitation) debt service,
        property taxes, insurance, development and improvement costs, contributions,
        litigation expenses, engineering fees, accounting fees, attorneys' fees,
        architectural fees, fees for building permits, impact fees, and other ordinary
        and usual expenses incurred in connection with the development of property
        of a
        similar type and character to the Property.

      B.   "Affiliate"
        shall mean any individual, partnership, corporation, trust or other entity
        or
        association, directly or indirectly, through one or more intermediaries,
        controlling, controlled by, or under common control with the Member. the
        term
“control,” as used in the immediately preceding sentence, means, with respect to
        a corporation or limited liability company, the right to exercise, directly
        or
        indirectly, more than fifty percent (50%) of the voting rights attributable
        to
        the controlled corporation or limited liability company, and, with respect
        to
        any individual, partnership, trust, other entity or association, the possession,
        directly or indirectly, of the power to direct or cause the direction of
        the
        management or policies of the controlled entity.

      C.   "Agreement"
        shall refer to this Partnership Agreement.

      

      
        
          
             

          

          
            2

            
              

            

          

          
             

          

        

      

      

      D.   "Breaching
        Partner" shall refer to any Partner who fails to pay his share of Additional
        Capital within ninety (90) days after delivery of the Call Notice pursuant
        to
        Section 3.2.C or who otherwise materially breaches this
        Agreement.

      E.   "Call
        Notice" shall refer to the written notice calling for Additional Capital
        as
        provided in Section 3.2.

      F.   “Claims”
        is defined in Section 8.4.

      G.   "Contractor’s
        License" shall refer to JRC’s contractor’s license issued by the Contractors
        State License Board of California as provided in Section 3.1.

      H.   "Defaulting
        Partner" shall refer to a Partner who fails to contribute his share of
        Additional Capital within ten (10) days after delivery of the Call Notice
        but
        who does contribute his share of Additional Capital within ninety (90) days
        after the delivery of the Call Notice.

      I.
   "General
        Partners" and/or "Partners" shall collectively refer to JRC and SPIC, and
        to any
        duly admitted Substituted Partner. Reference to "General Partner" or "Partner"
        shall be to any one of the General Partners.

      J.
   “Indemnitee
        Party” is defined in Section 8.4.

      K.   “Indemnitee
        Parties” is defined in Section 8.4.

      L.   "Initial
        Capital" shall mean the capital required to be contributed pursuant to Section
        3.1.

      M.  
          "Managing
        Partner" shall refer to JRC.

      N.   "Net
        Cash" shall mean the actual cash and marketable securities held by the
        Partnership at the end of each accounting period less reasonable reserves
        in
        amounts determined by the Managing Partner.

      O.   "New
        Partner" shall refer to a Partner who is admitted as a Substituted Partner
        in
        order to raise the Additional Capital which was not contributed by a Breaching
        Partner pursuant to Section 3.2.G(2).

      P.   "Non-Breaching
        Partner" shall refer to those Partners who are not in breach of this
        Agreement.

      Q.   "Non-Defaulting
        Partner" shall refer to the Partners who have timely contributed their share
        of
        Additional Capital under Section 3.2.

      R.   "Non-Selling
        Partners" shall refer to all of the Partners other than the Selling
        Partner.

      S.   "Partnership"
        shall refer to the General Partnership created under this Partnership
        Agreement.

      

      
        
          
             

          

          
            3

            
              

            

          

          
             

          

        

      

      

      T.   "Partnership
        Interest" shall refer to the property rights (as more fully defined in Sections
        15024, 15025 and 15026 of the California Corporations Code) of a Partner
        consisting of:

      
        	 	
                1.

              	
                His
                  rights in specific Partnership
                  property;

              

      

      
        	 	
                2.

              	
                His
                  interest in the Partnership; and’

              

      

      
        	 	
                3.

              	
                His
                  right to participate in management.

              

      

      U.   "Percentage
        Interest" shall mean the percentage of profits and losses generally allocated
        to
        each Partner pursuant to Section 3.4.

      V.
  “Sales
        Notice” is defined in Section 5.2.

      W.  
          "Selling
        Partner" shall mean a Partner who desires to sell all or a portion of his
        interest in the Partnership pursuant to Section 5.2.

      X.   “Solar
        Contract” shall refer to any agreement entered into between a customer and the
        Partnership for the design, engineering, supply or installation of a solar
        system. 

      Y.   "Substituted
        Partner" shall refer to a transferee of any Partner who is admitted as a
        Partner
        with full voting and other rights and duties pursuant to Section
        2.2.

      Z.   "SuperMajority"
        shall refer to more than 66 2/3% of the Percentage Interest.

      

      ARTICLE
        II

      ADMISSION
        OF PARTNERS; MANAGING PARTNER

      2.1 
          Members
        of Partnerships.
        The
        members of the Partnership shall consist of the Partners named in the
        introductory paragraph of this Agreement and all Substituted
        Partners.

      2.2    Admission
        of a Substituted Partner.

      A.   Subject
        to Article V, after the formation of the Partnership a person may be admitted
        as
        a Substituted Partner upon execution of a counterpart of this Agreement and
        on
        the recording of an amendment to the Statement of Partnership, provided that
        the
        following conditions are satisfied:

      1.   The
        written consent of all the General Partners must be first obtained;
        and

      2.   Filing
        fees and a transfer fee of Five Hundred Dollars ($500) for accounting, legal,
        and other professional fees must be paid by the newly admitted
        Partner.

      

      
        
          
             

          

          
            4

            
              

            

          

          
             

          

        

      

      

      B.   The
        Managing Partner shall specify the effective date that any transferee is
        admitted as a Substitute Partner. From and after the effective date the rights,
        duties and obligations of the transferor Partner shall terminate and the
        rights,
        duties and obligations of the Substituted Partner shall commence with respect
        to
        the Partnership Interest so transferred.

      2.3    Assignee
        Partner.
        If a
        General Partner transfers all or a part of his Partnership Interest in
        accordance with Article V, and if the transferee is not admitted as a Substitute
        Partner, then the transferee shall be a mere assignee of the General Partner's
        Partnership Interest and shall have only the right to receive the current
        and
        liquidating profits to which the assigning General Partner was entitled in
        accordance with Section 15027 of the California Corporations Code. An Assignee
        shall not have any right to specific partnership property or any right to
        participate in management. The Assignee, by accepting the assignment shall
        have
        the obligation to contribute Additional Capital on the same terms as required
        by
        the assigning General Partner pursuant to Section 3.2 hereof and agrees to
        be
        bound by all of the terms and conditions of that section. Any General Partner
        who transfers his interest by assignment shall not be relieved of any
        obligations or duties, nor shall be deprived of any rights, under this
        Agreement.

      2.4    Managing
        Partner.
        The
        Managing Partner shall be JRC.

      

      ARTICLE
        III

      FINANCIAL

      3.1    Initial
        Capital Contributions.

      A.   The
        Initial Capital of the Partnership shall be contributed by the Partners as
        follows:

      
        	
                Name

              	 	
                Description

              	 	 	
                Value

              	 
	
                J.R.
                  Conkey & Associates

              	 	
                Cash

              	 	
                $

              	
                25,500

              	 
	
                Solar
                  Power Integrators, Commercial, Inc.

              	 	
                Cash

              	 	
                $

              	
                24,500

              	 
	
                TOTAL

              	 	 	 	 	
                $

              	
                50,000

              	 

      

      

      B.   JRC’s
        Percentage Interest shall be fifty-one percent (51%) unless adjusted as provided
        in Section 3.2.H or unless such Partner transfers all or part of his Partnership
        Interest in accordance with Article V.

      

      
        
          
             

          

          
            5

            
              

            

          

          
             

          

        

      

      

      C.   SPIC’s
        Percentage Interest shall be forty-nine percent (49%) unless adjusted as
        provided in Section 3.2.H or unless such Partner transfers all or part of
        his
        Partnership Interest in accordance with Article V.

      D.   SPIC
        shall license on a non-exclusive basis the right to utilize the trademarks
        and
        trade names of “Solar Power” and any derivatives thereof, which trademarks and
        trade names shall remain the exclusive intellectual property of SPIC. The
        license shall be for the duration of the Partnership without further
        compensation to SPIC.

      E.   James
        R.
        Conkey is a contractor licensed under the Contractors State License Board
        of
        California, License # ___________. The Partnership shall employ James R.
        Conkey
        as the responsible employee, provided the Partnership indemnifies, defends,
        and
        holds James R. Conkey harmless from any and all Claims, as set forth in Section
        8.4, below. 

      3.2    Loans
        to Partnership.
        No
        Partner shall lend or advance money to or for the Partnership's benefit without
        the approval of the Managing Partner. If any Partner lends any money to the
        Partnership in addition to his, her, or its contribution to Partnership's
        capital, the loan shall be a debt of the Partnership to that Partner and
        shall
        bear interest at a mutually agreed rate. The liability shall not be regarded
        as
        an increase of the lending Partner's capital, and it shall not entitle him,
        her
        or it to any increased share of the Partnership's profits. Notwithstanding,
        the
        Partners hereby agree and acknowledge that SPIC shall advance money to the
        Partnership in an amount not to exceed Two Hundred and Fifty Thousand Dollars
        ($250,000) (the “Line of Credit”). The Line of Credit shall bear interest at a
        rate equal to the greater of i) eight percent (8%) simple interest; or ii)
        the
        prime rate published by the Wall Street Journal on the last day of each month
        for the following month, per year. Such interest shall be paid in accordance
        with the terms of a promissory note to be executed by and between SPIC and
        the
        Partnership (the “Note”). 

      3.3    Additional
        Capital Contributions.

      A.   To
        the
        extent that Partnership revenues, Initial Capital Contributions, and Line
        of
        Credit are insufficient to meet all of the obligations and capital requirements
        of the Partnership, the Managing Partner may reasonably determine the amount
        of
        Additional Capital required by the Partnership and may require each Partner
        to
        contribute a proportionate share of Additional Capital to the Partnership.
        The
        Managing General Partner's determination will be binding on all Partners
        unless
        overridden by majority vote of all Partners.

      

      
        
          
             

          

          
            6

            
              

            

          

          
             

          

        

      

      

      B.   Each
        Partner's proportionate share of Additional Capital shall be defined as the
        product of the total amount of Additional Capital required by the Partnership
        multiplied by that Partner's Percentage Interest in the
        Partnership.

      C.   All
        Additional Capital contributions shall be made in cash by each Partner to
        the
        Partnership within ten (10) days after delivery of the Call Notice.

      D.   If
        any
        Partner fails to contribute his share of Additional Capital within ten (10)
        days
        after the Call Notice, then that Partner shall be a Defaulting
        Partner.

      E.   A
        Defaulting Partner shall have ninety (90) days from the date of delivery
        of the
        Call Notice in which to cure that default by contributing his share of the
        Additional Capital and by paying to the Non-Defaulting Partners, (in proportion
        to their Percentage Interests) an amount equal to one percent (1%) of the
        Defaulting Partner's share of Additional Capital as "Liquidated Damages"
        for
        each ten (10) day period that he is late in contributing his share of the
        Additional Capital commencing on the eleventh (11th) day after delivery of
        the
        Call Notice. For example, if the Defaulting Partner's share of Additional
        Capital is Five Hundred Thousand Dollars ($500,000) and he is thirty (30)
        days
        late, he would pay the sum of three percent (3%) of Five Hundred Thousand
        Dollars ($500,000) or Fifteen Thousand Dollars ($15,000) as liquidated damages
        equally to the Non- Defaulting Partners.

      BY
        INITIALING HEREUNDER, EACH PARTNER SPECIFICALLY AGREES TO PAY ANY SUCH
        LIQUIDATED DAMAGES WHICH MAY BECOME DUE AS A RESULT OF HIS LATE PAYMENT OF
        ADDITIONAL CAPITAL CONTRIBUTION AND FURTHER AGREES THAT THESE DAMAGES CONSTITUTE
        A REASONABLE ESTIMATE OF THE AMOUNT OF ACTUAL DAMAGES WHICH MAY BE SUFFERED
        BY
        THE OTHER PARTNERS AS THE RESULT OF LATE PAYMENT:

      

      
        	
                Initials:

              	
                ____________

              	
                ____________

              
	 	
                JRC

              	
                SPIC

              

      

      

      F.   If
        any
        Defaulting Partner fails to cure a default within ninety (90) days by
        contributing his share of Additional Capital and by paying the liquidated
        damages as above provided, then such Partner shall be in material breach
        of this
        Agreement (hereinafter "Breaching Partner").

      

      
        
          
             

          

          
            7

            
              

            

          

          
             

          

        

      

      

      G.   The
        Non-Breaching Partners by majority vote may elect any one of the following
        alternative remedies: (i) contribute the Breaching Partner's share of Additional
        Capital; (ii) admit a New Partner who contributes an amount equal to the
        Additional Capital required to be contributed by the Breaching Partner; (iii)
        loan an amount equal to the Additional Capital required to be contributed
        by the
        Breaching Partner; (iv) remove the Breaching Partner as provided in Section
        5.5
        and sue him for damages in a breach of contract action which the Partners
        agree
        may be initiated independently of a dissolution action; or (v) dissolve the
        Partnership and seek damages against the Breaching Partner for his breach
        of the
        Partnership Agreement including, without limitation, the right to damages
        for
        out of pocket costs and consequential damages such as lost profits. An election
        of remedies once made shall be irrevocable and shall be made after ninety
        (90)
        days and before one hundred twenty (120) days after delivery of the Call
        Notice.
        An election of remedies with respect to one breach shall not be binding on
        any
        election regarding any subsequent breach.

      H.   If
        the
        Non-Breaching Partners make the election provided in Section 3.2.G(1), the
        Non-Breaching Partners may contribute the Breaching Partner's share of
        Additional Capital in proportion of their Percentage Interests, or in any
        other
        proportions that they may, by agreement, determine and the allocation of
        profits
        and losses pursuant to Section 3.4.A shall be adjusted so that income,
        gain, loss, deduction, and/or credit shall thereafter be allocated in proportion
        to the total capital contributions of each Partner. For example, if the total
        capital contribution of each Partner is Ten Million Dollars ($10,000,000)
        for a
        total of Forty Million Dollars ($40,000,000) and the Managing Partner calls
        for
        Additional Capital of Four Million Dollars ($4,000,000), (One Million Dollars
        ($1,000,000) for each Partner) and if one Partner fails to contribute One
        Million Dollars ($1,000,000) within ninety (90) days, then the Non-Breaching
        Partners may elect to contribute the additional One Million Dollars ($1,000,000)
        in equal shares in which case their Percentage Interests would be increased
        from
        twenty-five percent (25%) each to twenty-five and seven hundred fifty-eight
        thousandths percent (25.758%) and the Breaching Partner's Percentage Interest
        would be decreased from twenty-five percent (25%) to twenty-two and seven
        hundred twenty-six thousandths percent (22.726%).

      

      10/11
        x
        25% ÷ 3 = Percentage Increase of Non-Breaching Partners

      

      

      
        
          
             

          

          
            8

            
              

            

          

          
             

          

        

      

      

      I.    If
        the
        Non-Breaching Partners do not elect to contribute Additional Capital of the
        Breaching Partner, but rather elect to admit a New Partner to the Partnership,
        then the New Partner shall become a Substituted Partner as provided in Section
        2.1. The New Partner shall be entitled to receive a Percentage Interest and
        a
        Partnership Interest in the Partnership equal to the percentage derived by
        multiplying the Breaching Partner's Percentage Interest by a fraction of
        the
        numerator of which is equal to the Additional Capital required to be contributed
        by the Breaching Partner and the denominator of which is equal to the sum
        of the
        total capital contributed by the Breaching Partner plus the amount of Additional
        Capital required to be contributed by the Breaching Partner.

      J.    In
        lieu
        of contributing the Additional Capital of a Breaching Partner and in lieu
        of
        admitting a New Partner, the Non-Breaching Partners may loan an amount equal
        to
        the assessment in default pursuant to Section 3.9.A below.

      K.   All
        liquidated damages which may accrue pursuant to Section 3.2.E, above, shall
        be a
        personal obligation of the Breaching Partner to the other Partners and shall
        be
        payable on demand and shall survive any election made by the Non-Breaching
        Partners to cure the breach by the Breaching Partner pursuant to Section
        3.2.G.
        The accrual of liquidated damages shall cease after ninety (90) days of
        default.

      L.   So
        long
        as a Partner is in default or breach hereunder, he shall have no voting rights
        but shall receive notice of any meetings.

      3.4    Interest
        on Capital and Income Accounts.
        No
        Partner shall receive any interest on his capital account.

      3.5    Allocation
        of Profits and Losses.

      A.   Except
        as
        provided in Section 3.4.B, all income, gain, loss, deduction, or credit shall
        be
        allocated to the Partners in proportion to their respective Percentage Interests
        in the Partnership.

      B.   If
        a
        difference exists between the fair market value of the property contributed
        by
        any Partner to the Partnership and its adjusted basis, then gain, loss and
        depreciation shall be allocated among the Partners pursuant to Section 704(c)(2)
        of the Internal Revenue Code of 1986, and Section 17857(b) of the California
        Revenue and Taxation Code to take account of the variation between the basis
        of
        the Property in the Partnership and its fair market value at the time of
        contribution.

      

      
        
          
             

          

          
            9

            
              

            

          

          
             

          

        

      

      

      3.6    Computation
        of Profits and Losses.
        Profits
        and losses shall be determined on an accrual method of accounting with the
        application of generally accepted accounting principles. Profits and losses
        shall be computed quarterly.

      3.7    Required
        Current Distributions of Net Cash.
        The
        Partnership shall distribute so much of the Partnership's Net Cash as may
        be
        necessary to equal the product derived by multiplying the Partnership's net
        profit by thirty-five percent (35%). Net Cash shall be distributed to the
        Partners in convenient intervals but not less frequently than annually in
        proportion to their Percentage Interests in the Partnership.

      3.8    Discretionary
        Distribution of Net Cash.
        In the
        event that the Managing Partner determines that the Partnership has Net Cash
        which is available for distribution (including, without limitation, cash
        generated by the sale or refinancing of Partnership property), the Managing
        Partner may distribute said Net Cash in the same proportions as above
        provided.

      3.9    Repayment
        of Loans and Liquidated Damage.
        Notwithstanding any provision of this Agreement, the Managing Partner shall
        repay all loans made by any Partner pursuant to the terms of this Agreement
        before distributing any Net Cash to the Partners. The Managing Partner is
        also
        specifically authorized to withhold from any distribution to a Defaulting
        Partner or Breaching Partner an amount equal to any liquidated damages under
        Section 3.2.E and pay such liquidated damages over to the Non-Defaulting
        Partners as their interests may appear. The Managing Partner is also authorized
        to withhold distributions from any Partner who is in default or has breached
        this Agreement until all assessments for Additional Capital attributable
        to such
        Partner are current.

      3.10     Loans
        by Partners; Default Capital Contribution.

      A.   If
        any
        Partner is in default in contributing his share of Additional Capital pursuant
        to Section 3.2, then the Non-Defaulting Partners may loan the funds to the
        Partnership necessary to cure the assessment in default. Any such loan shall
        bear an interest rate in an amount equal to five (5) points above the Federal
        Discount Rate and shall be payable on one hundred eighty (180) days
        demand.

      B.   In
        addition, the Managing Partner (or any other Partner with the approval of
        the
        Managing Partner) may from time to time loan funds to the Partnership as
        may be
        reasonable or necessary and which shall be repaid with interest at the rate
        of
        ten percent (10%) upon thirty (30) days demand.

      

      
        
          
             

          

          
            10

            
              

            

          

          
             

          

        

      

      

      3.11 
           Other
        Distributions and Compensation to Partners and/or Affiliates.
        Apart
        from their share of profits and losses and distributions of cash as described
        above, the Partners and their affiliates shall receive no distribution or
        compensation from the Partnership except as follows:

      A.   The
        Managing Partner shall, in addition to his share of the profits and losses
        of
        the Partnership, receive cash reimbursements as may, from time to time, be
        approved by unanimous vote of all Partners in order to defray any general
        office
        and additional expenses incurred by the Managing Partner in the administration
        of his duties. Any request by the Managing Partner for cash reimbursements
        pursuant to this section shall be supported by reasonably adequate accounting
        records prepared by a certified public accountant.

      B.   If
        any
        Partner or Affiliate also performs services for the Partnership as an employee
        or as an independent contractor thereof, he shall be compensated for such
        services at the same rate of compensation which, according to the standard
        in
        the community, would be paid to an independent party for performing the same
        or
        similar services if approved by majority vote of the Partners.

      C.   Each
        Partner shall be entitled to reimbursement for all verified and authorized
        expenses incurred by him in connection with the Partnership business. All
        such
        expenses shall be authorized by the Managing Partner or if payable to the
        Managing Partner, by majority vote.

      3.12 
           Maintenance
        of Books of Account.
        At all
        times the Managing Partner shall maintain or cause to be maintained true
        and
        proper books of account.

      3.13     Location
        of Books of Account.
        All
        books of account, together with this Agreement and Statement of Partnership
        and
        any amendments thereto, shall at all times be kept and maintained at the
        principal place of business of this Partnership.

      3.14     Inspection
        of Books of Account.
        All
        books of account shall be open to inspection by any Partner or his duly
        authorized representative, on reasonable notice, at any reasonable time during
        business hours, for any purpose reasonably relating to his interest as a
        Partner, and said Partner or representative shall have the further right
        to make
        copies or excerpts therefrom.

      3.15     Method
        of Accounting.
        The
        Partnership books shall be kept on the accrual method of
        accounting.

      3.16     Fiscal
        Year.
        The
        fiscal year of the Partnership shall be the calendar year.

      3.17     Capital
        Accounts.
        An
        individual capital account shall be maintained for each Partner in accordance
        with generally accepted accounting principles and in accordance with the
        regulations promulgated pursuant to Section 704 of the Internal Revenue Service
        Code of 1986.

       

      
        
           

        

        
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      3.18     Financial
        Statements and Interim Reports.
        The
        books shall be closed and balanced at the end of each fiscal year and there
        shall be delivered to each Partner within ninety (90) days after the expiration
        of each fiscal year of this Partnership, a balance sheet and a profit and
        loss
        statement, together with a statement showing the accounts of each Partner,
        the
        distributions to each Partner, and each Partner's share of profits or loss
        of
        the Partnership for such year reportable for state and federal tax
        purposes.

      A.   Within
        thirty (30) days after the close of each calendar quarter, the Managing Partner
        shall prepare and deliver to each Partner interim income and expense statements
        and balance sheets.

      3.19     Banking.
        The
        Managing Partner shall open and thereafter maintain a separate bank account
        in
        the name of the Partnership, in which there shall be deposited all of the
        funds
        of the Partnership. No other funds shall be deposited in the account. The
        funds
        in said account shall be used solely for the business of the Partnership,
        and
        all withdrawals therefrom are to be made on checks signed by Managing
        Partner.

      

      ARTICLE
        IV

      RIGHTS,
        POWERS, DUTIES, AND RESTRICTIONS OF PARTNERS

      4.1 
          Managing
        Partner.

      A.   The
        Managing Partner shall have general supervision, direction and control of
        the
        Partnership. The Managing Partner will manage and conduct the day-to-day
        affairs
        of the Partnership. The Managing Partner shall have the general powers and
        duties of management typically vested in the office of the president or chief
        executive officer of the corporation, and the treasurer. Unless otherwise
        provided by this Agreement, the Managing Partner shall have full, complete,
        and
        exclusive authority and discretion to make all decision affecting the business
        of the partnership, including but not limited to the following:

      1.   Borrow
        money on behalf of the Partnership or offer as security for any debt the
        Partnership assets, if any, in the ordinary course of business;

      2.   Collect
        all sums due to and pay all obligations due by the Partnership;

      3.   Employ
        agents, employees, managers, accountants, attorneys consultants, an other
        persons as may be necessary;

      

      
        
          
             

          

          
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      4.   Pay
        all
        taxes, charges, assessments and just debts of the Partnership;

      5.   Enter
        into contracts on behalf of the Company;

      6.   Make
        tax
        elections as may be necessary or desirable in its judgment, compromise and
        settle obligations, litigation or claims against the Partnership;

      7.   Engage
        in
        arbitration or litigation;

      8.   Create
        reserves and withdraw funds therefrom;

      9.   Execute
        documents on behalf of the Partnership; and

      10. 
          Exercise
        any and all other powers usual and necessary to carry on all of the business
        affairs of the Partnership;

      B.   In
        performing his duties, the Managing Partner shall not perform and of the
        following acts without a Supermajority consent of the Partners:

      1.    Any
        act
        that would make it impossible to carry on the ordinary business of the
        Partnership;

      2.   A
        confession of judgment against the Partnership;

      3.   Unless
        otherwise provided by this Agreement, a dissolution of the
        Partnership;

      4.   Change
        the nature of the principal business of the Partnership;

      5.   File
        a
        petition in bankruptcy or enter into an arrangement among
        creditors;

      6.   Enter
        into any transaction constituting a “reorganization;”

      7.   Merge
        with another entity;

      8.   Continue
        to the business of the Partnership after a Dissolution Event;

      9.   Acquire
        or dispose of any real or personal property or interest therein in excess
        of
        Fifty Thousand Dollars ($50,000) on behalf of the Partnership;

      10.    Borrow
        money on behalf of the Partnership or offer as security for any debt the
        Partnership assets, if any, not in the ordinary course of business;

      11.    Sell,
        exchange and convey all or any of the Partnership assets;

      12.    Execute
        on behalf of the Partnership any contract or other agreement which would
        obligate the Partnership to pay in excess of Fifty Thousand Dollars ($50,000);
        or

      

      
        
          
             

          

          
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      13.    Lease
        any
        property owned by the Partnership.

      4.2    Specific
        Duties.

      A.   JRC’s
        Duties.
        In
        addition to its duties as Managing Partner, JRC shall also be responsible
        for
        (i) all marketing and sales efforts; (ii) establishing and maintaining customer
        relationships; (iii) contract management; and (iv) coordinating job scheduling
        in cooperation with SPIC.

      B.   SPIC’s
        Duties.
        SPIC
        shall be responsible for (i) exclusively supplying all solar panels or other
        solar materials to the Partnership for installation; (ii) the design,
        engineering, and installation of all solar systems for customers; and (iii)
        coordinating job scheduling in cooperation with JRC.

      C.   Joint
        Duties.
        As a
        condition to the Partnership’s acceptance of a Solar Contract from any customer,
        JRC and SPIC must agree on the amount that SPIC, as an independent contractor,
        will charge the Partnership for the design, engineering, supply and installation
        services that SPIC will provide to the Partnership. If the Partners fail
        to
        agree on the cost of SPIC’s services related to any Solar Contract, then the
        Partnership shall reject the particular Solar Contract and each Partner shall
        thereafter be prohibited from individually performing any work for that
        customer, which was the subject of the rejected Solar Contract.

      4.3    General
        Partners - Devotion of Time to Partnership. 

      Each
        Partner shall devote such time to this Partnership as may be reasonably
        requested by the Managing Partner in order to conduct this Partnership in
        an
        efficient and businesslike manner.

      4.4    Voting
        Rights of General Partners. 

      All
        Partnership matters shall be decided by a majority vote with each Partner
        having
        one vote for each one (1) point of his Percentage Interest. For example,
        a
        Partner owning a twenty-five percent (25%) Percentage Interest shall have
        twenty-five (25) votes.

      4.5    General
        Partners Engaging in Other Business. 

      Any
        of
        the Partners may engage in or possess an interest in other business ventures
        of
        every nature and description independently or with others, including, but
        not
        limited to, the acquisition of a venture similar, identical or competitive
        with
        the business of the Partnership; and neither the Partnership nor the Partners
        shall have any right by virtue of this Agreement or any fiduciary or other
        similar duty which may arise by reason of this relation or Partnership in
        and to
        such independent ventures or to the income or profits derived therefrom.
        Each
        Partner hereby waives any and all claims or actions which may heretofore
        have
        arisen, or which may hereafter arise against any other Partner as a result
        of
        engaging in transactions or activities competitive with the Partnership
        business.

      

      

      
        
          
             

          

          
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      ARTICLE
        V

      RESTRICTIONS
        ON TRANSFERS OF PARTNERSHIP INTERESTS;

      REMOVAL
        OF PARTNERS

      5.1    Prohibition
        Against Transfer.
        Neither
        a Partner, nor his heirs, personal representatives, successors, or assigns,
        shall have the right, at any time, to sell, transfer, assign, or hypothecate,
        for consideration or gratuitously, during life or after death, all or any
        portion of his Partnership Interest and any such attempted sale, transfer,
        assignment or hypothecation shall be void and ineffectual unless the
        requirements of this Article V have first been satisfied.

      5.2    Right
        of First Refusal

      A.   If
        any
        Partner desires to sell, assign, transfer or hypothecate his Partnership
        Interest during his life, he shall first deliver a notice in writing to the
        Managing Partner ("Sales Notice"), stating the price, terms, and conditions
        of
        any offer received; or, if no bona fide offer has been received, the price,
        terms and conditions upon which he would be willing to sell his Partnership
        Interest to the Non-Selling Partners. The Selling Partner shall also disclose
        all facts relevant to the proposed sale as may be requested by the Non-Selling
        Partners.

      B.   Within
        thirty (30) days after receipt of the Sales Notice, the Non-Selling Partners
        shall have the right to purchase all of the Partnership Interest offered
        by the
        Selling Partner as follows:

      1.   In
        the
        case of a bona fide offer the purchase price and terms and conditions of
        the
        sale shall be as set forth in the Sale Notice; or

      2.   In
        any
        other case the purchase price shall be the fair value (as determined in Section
        5.5) of the Selling Partner's Partnership Interest as determined by agreement
        of
        the Partners within thirty (30) days after delivery of the Sales Notice,
        or if
        they fail to so agree within thirty (30) days, by binding arbitration pursuant
        to Section 8.1. The terms of payment shall be all cash at closing.

      

      
        
          
             

          

          
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      C.   If
        there
        is more than one Non-Selling Partner, each Non-Selling Partner shall be entitled
        to purchase a portion of the Selling Partner's Partnership Interest in the
        same
        proportion as his Percentage Interest bears to the Percentage Interests of
        all
        Non-Selling Partners. If one or more Non-Selling Partners decide not to purchase
        his proportionate share(s) of the Selling Partner's Partnership Interest,
        the
        other Non-Selling Partners may purchase their proportionate shares
        thereof.

      D.   If
        Non-Selling Partners fail to purchase all, and not less than all, of the
        Selling
        Partner's Partnership Interest specified in the Sales Notice within thirty
        (30)
        days after delivery of the Sales Notice, the Selling Partner may assign his
        interest to anyone on the same terms and conditions stated in the Sales Notice
        and on no more favorable terms or conditions; provided, however, that if
        said
        interest is not assigned within one hundred (100) days after the delivery
        of the
        Sales Notice, then the transfer of the Selling Partner's Partnership Interest
        shall again become subject to the Non-Selling Partner's Right of First Refusal.
        Any person to whom a Partnership Interest is assigned pursuant to this Section
        5.2.D shall be an Assignee Partner unless the Non-Selling Partners vote to
        make
        him a Substituted Partner pursuant to Section 2.2.

      5.3    Death
        of a Partner.
        Upon the
        death of a Partner, the Partnership shall admit the deceased Partner's personal
        representative, heirs, or devisees as a Substituted Partner and the business
        of
        the Partnership shall continue without interruption unless the Remaining
        Partners elect to remove the personal representative, heir or devisee as
        a
        Partner pursuant to Section 5.4, below.

      5.4    Removal
        of General Partner.

      A.   Any
        Partner may be removed by a unanimous vote of the other Partners (herein
        "Remaining Partners"), so long as the Partnership and/or the Remaining Partners
        purchase the Removed Partner's Partnership Interest at fair value, as determined
        in accordance with Section 5.5.

      B.   For
        purposes of Section 5.4.A, the Removed Partner shall receive from the
        Partnership or the Remaining Partners, as the case may be, the value of his
        Partnership Interest, determined by agreement between the Removed Partner
        and
        the Remaining Partners in accordance with Section 5.5, or if they cannot
        agree
        within thirty (30) days after the effective date of the removal, then by
        binding
        arbitration as provided in Section 8.1, and payment shall be made in cash
        no
        later than the sixtieth (60th) day after the valuation determination of the
        Removed Partner's interest by agreement or by arbitration, as the case may
        be.

      

      
        
          
             

          

          
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      C.   The
        issue
        of removal shall be voted on at a duly noticed Partnership meeting and shall
        be
        effective upon delivery of written notice of the removal to the Removed
        Partner.

      D.   The
        Removed Partner's right to participate in Partnership affairs and profits
        and
        losses shall be terminated on the effective date of the removal even though
        payment of the purchase price will be delayed until the value of the Removed
        Partner's Partnership Interest is determined. If the Remaining Partners fail
        to
        pay the purchase price within the time periods herein set forth, the Removed
        Partner's sole remedy will be to sue for breach of contract and he shall
        not be
        entitled to rescind the removal.

      E.   In
        the
        event a Partner is removed for materially breaching this Agreement, the
        Remaining Partners may withhold up to twenty percent (20%) of the purchase
        price
        by depositing it in a blocked account provided the Remaining Partners
        simultaneously institute and diligently prosecute a clause for damages against
        the Removed Partner. The funds in any such blocked account shall be disbursed
        only upon a judgment or settlement between the Removed Partner and the Remaining
        Partners. 

      5.5    Valuation
        of Interest.
        Except
        as otherwise provided, the value of a Partner's interest in the Partnership
        for
        purposes of this Agreement shall be the sum of the following items as of
        the
        date the value is to be determined after the accounting records have been
        closed
        under the Partnership's accounting practices, consistently applied:

      A.   The
        credit balance in the Partner's capital account;

      B.   The
        credit or debit balance in the Partner's drawing account;

      C.   The
        amount of any debt owed to the Partner by the Partnership;

      D.   The
        Partner's proportionate share of the Partnership's net profit for the current
        fiscal year to the date as of which the computation is made and not yet
        reflected in the Partner's capital or drawing account; or, if the Partnership
        operations for that period show a loss, the Partner's proportionate share
        of any
        such loss shall be deducted; and

      E.   Any
        other
        sums due the Partner from the Partnership; but

      F.   Less
        any
        debt owed by the Partner to the Partnership.

      5.6    Payment
        of Purchase Price.
        Except
        as otherwise provided, whenever the Partnership is obligated or, having the
        right to do so, chooses to purchase a Partner's interest, it shall pay for
        the
        interest in cash within ninety (90) days after the date on which the
        Partnership's obligation to pay has become fixed.

      

      
        
          
             

          

          
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      5.7    Partnership
        Assumption of Liabilities.
        Except
        as otherwise provided, the continuing Partnership shall pay, as they mature,
        all
        Partnership obligations and liabilities that exist on the effective date
        of
        termination and shall save the terminating Partner harmless from any action
        or
        claim arising or alleged to arise from those obligations or from liabilities
        accruing after that date.

      5.8    Covenant
        Against Dissolution.
        Except
        as provided herein, no Partner shall have the right to voluntarily dissolve
        this
        Partnership unless all Partners agree thereto. Any Partner who desires to
        withdraw from the Partnership shall follow the procedure set forth in this
        Article V.

      

      ARTICLE
        VI

      DISSOLUTION
        OF THE PARTNERSHIP

      6.1    Dissolution
        and Winding Up.
        The
        Partnership shall be dissolved and its affairs shall be wound up upon the
        expiration of the term provided in Section 1.5, or upon the occurrence of
        any of
        the events specified in Sections 6.2 through 6.5, whichever is the first
        to
        occur.

      6.2    Dissolution
        Upon Consent.
        The
        Partnership shall be dissolved upon any date specified in any consent to
        dissolution signed by all of the Partners.

      6.3    Dissolution
        Pursuant to California Corporations Code Section 15031(3) and
        15031(5).
        The
        Partnership shall dissolve, its assets sold, and its affairs shall be wound
        up
        upon occurrence of the events set forth in California Corporations Code Section
        15031(5) unless the other Partners unanimously vote to continue the Partnership,
        and purchase the interest of the "Bankrupt Partner." The Bankrupt Partner
        shall
        be treated as serving a Sales Notice (other than in connection with a bona
        fide
        offer) upon the Non-Selling Partners as provided in Section 5.2 upon filing
        of a
        petition for bankruptcy or reorganization and the Bankrupt Partner shall
        thereupon become a Selling Partner. The Non-Selling Partners shall have the
        right to purchase the Selling Partner's Percentage Interest as provided in
        Section 5.2. The Partnership shall dissolve, the assets sold and its affairs
        wound up upon the occurrence of any event described in California Corporations
        Code Section 15031(3).

      

      
        
          
             

          

          
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      6.4    Dissolution
        Upon Sale or Disposition.
        The
        Partnership shall be dissolved and its affairs shall be wound up when all
        of its
        assets have been disposed of or sold.

      6.5    Dissolution
        Upon Judicial Decree.
        The
        Partnership shall be dissolved and its affairs shall be wound up when required
        by a decree of judicial dissolution.

      6.6    Responsibility
        for Winding Up.
        Upon
        dissolution of the Partnership, the affairs of the Partnership shall be wound
        up
        by the Managing Partner, or if he has wrongfully caused the dissolution,
        then by
        those Partners who have not wrongfully caused the dissolution.

      6.7    Liquidation
        and Distribution.
        The
        person or persons responsible for winding up the affairs of the Partnership
        pursuant to Section 6.6 shall take full account of the Partnership assets
        and
        liabilities, shall liquidate the assets of the Partnership as promptly as
        is
        consistent with obtaining the fair value thereof, and shall apply and distribute
        the proceeds in the following order:

      A.   To
        creditors of the Partnership other than Partners; and

      B.   To
        the
        Partners as creditors.

      C.   To
        the
        Partners in accordance with their capital accounts.

      6.8    Negative
        Capital Accounts.
        If after
        all the assets of the Partnership have been sold, any Partner has a negative
        capital account, that Partners shall pay to the Partnership in cash within
        ninety (90) days thereafter, an amount equal to the negative balance in his
        capital account. The amount so repaid shall be distributed among the Partners
        who have positive balances in their capital accounts. If any Partners fail
        to
        contribute an amount equal to the negative balance in his capital account
        within
        ninety (90) days, the amount due to the Partnership shall accrue interest
        from
        date first due at the maximum rate chargeable under California Law and the
        interest shall continue to accrue on the outstanding balance due until the
        negative balance is paid in full. All interest so accruing shall be distributed
        to the Partners with positive capital account balances in proportion
        thereto.

      6.9    Filing
        Certificate of Dissolution.
        Upon
        dissolution of the Partnership, the General Partners shall execute, publish
        and
        record a Notice of Dissolution, as required by law, and shall revoke any
        Fictitious Business Name Statements previously filed and published by the
        Joint
        Venture.

      ARTICLE
        VII

      PARTNERSHIP
        MEETINGS

      7.1    Call
        and Place of Meetings.
        Meetings
        of the Partners at the principal executive office of the Partnership may
        be
        called pursuant to the written request of any Partner.

      

      
        
          
             

          

          
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      7.2    Notice
        of Meeting.
        Immediately upon receipt of a written request stating that one (1) or more
        Partners request a meeting on a specific date (which date shall not be less
        than
        two (2) nor more than ten (10) days after the receipt of the request by the
        Managing Partner), the Managing Partner shall immediately give notice to
        all
        Partners entitled to vote, as determined in accordance with Section 4.3 of
        this
        Agreement. Valid notice may not be given less than two (2) nor more than
        thirty
        (30) days prior to the date of the meeting, and shall state the location,
        date,
        and hour of the meeting and the general nature of the business to be transacted.
        No business other than the business stated in the notice of the meeting may
        be
        transacted at the meeting. Notice shall be given by mail, addressed to each
        Partner entitled to vote at the meeting at the address appearing in the books
        of
        the Partnership for that Partner.

      7.3    Quorum.
        At any
        duly held or called meeting of Partners, the presence of the General Partners
        holding at least seventy-five percent (75%) of the voting power shall be
        required in order to constitute a quorum. The Partners present at a duly
        called
        or held meeting at which a quorum is present may continue to transact business
        until adjournment, notwithstanding the withdrawal of enough Partners to leave
        less than a quorum, if any action taken, other than adjournment, is approved
        by
        the requisite votes.

      7.4    Adjournment
        of Meetings.
        A
        Partnership meeting at which a quorum is present may be adjourned to another
        time or place and any business which might have been transacted at the original
        meeting may be transacted at the adjourned meeting. If a quorum is not present
        at an original meeting, that meeting may be adjourned by a vote of the majority
        of the interests represented either in person or by proxy. Notice of the
        adjourned meeting need not be given to Partners entitled to notice if the
        time
        and location thereof are announced at the meeting at which the adjournment
        is
        taken, unless the adjournment is for more than thirty (30) days or if, after
        the
        adjournment, a new record date is fixed for the adjourned meeting, in which
        case
        notice of the adjourned meeting shall be given to each Partner of record
        entitled to vote at the adjourned meeting.

      7.5    Meetings
        Not Duly Called, Noticed, or Held.
        The
        transactions consummated at any meeting of Partners, however called and noticed,
        and wherever held, shall be as valid as though consummated at a meeting duly
        held after regular call and notice, if a quorum is present at that meeting,
        either in person or by proxy, and if, either before or after the meeting,
        each
        of the persons entitled to vote, not present in person or by proxy, signs
        either
        a written waiver of notice, a consent to the holding of the meeting, or an
        approval of the minutes of the meeting.

      

      
        
          
             

          

          
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      7.6    Waiver
        of Notice.
        Attendance of a Partner at a meeting shall constitute a waiver of notice,
        except
        when that Partner objects, at the beginning of the meeting, to the transaction
        of any business on the ground that the meeting was not lawfully called or
        convened. Attendance at a meeting is not a waiver of any right to object
        to the
        consideration of matters required to be described in the notice of the meeting
        and not so included if the objection is expressly made at the meeting. Any
        Partner approval at a meeting shall be valid only if the general nature of
        the
        proposal is stated in any written waiver of notice.

      7.7    Consent
        to Action Without Meeting.
        Any
        action that may be taken at any meeting of the Partners may be taken without
        a
        meeting if a consent in writing, setting forth the action so taken, is signed
        by
        Partners having not less than the minimum number of votes that would be
        necessary to authorize or take that action at a meeting at which all Partners
        entitled to vote thereon were present and voted. In the event that any Partner
        requests a meeting for the purpose of discussing or voting on the matter
        so
        noticed, notice of a meeting shall be given pursuant to Section 7.2 and no
        action shall be taken until the meeting is held. Unless delayed by a request
        for
        and the conduct of a meeting, any action taken without a meeting shall be
        effective three (3) days after the required minimum number of voters have
        signed
        consents to action without a meeting; however, the action shall be effective
        immediately if all Partners sign consents to action without a
        meeting.

      7.8    Proxies.

      A.   Every
        Partner entitled to vote may authorize another person or persons to act by
        proxy
        with respect to that Partner's interest in the Partnership.

      B.   Any
        proxy
        purporting to have been executed in accordance with this Section 7.8 shall
        be
        presumptively valid.

      C.   No
        proxy
        shall be valid after the expiration of three (3) months from the date thereof
        unless otherwise provided in the proxy. Subject to Sections 7.8.F and 7.8.G,
        every proxy continues in full force and effect until revoked by the person
        executing it. The dates contained on the proxy forms presumptively determine
        the
        order of execution, regardless of the postmark dates on the envelopes in
        which
        they are mailed.

      D.   Except
        as
        provided in Section 7.8.F, a proxy is not revoked by the death or incapacity
        of
        the person executing it, unless, before the vote is counted, written notice
        of
        the death or incapacity of the maker is received by the
        Partnership.

      

      
        
          
             

          

          
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      E.   Revocation
        of a proxy is effective by a writing delivered to the Partnership stating
        that
        the proxy is revoked or by a subsequent proxy executed by the Partner who
        executed the proxy or, as to any meeting, by the attendance and exercise
        of the
        right to vote at that meeting by the Partner who executed the
        proxy.

      F.   A
        proxy
        that states that it is irrevocable is irrevocable for the period specified
        therein when it is held by any creditor or creditors of the Partnership or
        the
        Partner who extended or continued credit to the Partnership or the Partner
        in
        consideration of the proxy if the proxy states that it was given in
        consideration thereof and the name of the person extending or continuing
        credit.
        Notwithstanding Section 7.8.D, a proxy may be made irrevocable if it is given
        to
        secure the performance of a duty or to protect a title, either legal or
        equitable, until the happening of events which, by its terms, discharge the
        obligations secured by it.

      G.   Notwithstanding
        the period of irrevocability specified in a proxy executed pursuant to the
        provisions of Section 7.8.F, such a proxy becomes revocable when the debt
        of the
        Partnership or Partner is paid.

      H.   A
        proxy
        may be revoked, notwithstanding a provision making it irrevocable, by the
        assignment of the interest in the Partnership of the Partner who executed
        the
        proxy to an Assignee without knowledge of the existence of the proxy and
        the
        admission of that Assignee to the Partnership as a Partner.

      I.    The
        Managing Partner may, in advance of any Partnership meeting, prescribe
        additional regulations concerning the manner of execution and filing of proxies
        and their valuation.

      

      ARTICLE
        VIII

      MISCELLANEOUS
        CLAUSES AND REPRESENTATIONS

      8.1    Arbitration;
        Valuation of Interest.
        If a
        dispute arises between the parties hereto or their heirs, personal
        representatives, successors or assigns concerning the value of a Partnership
        interest, such dispute shall be submitted to arbitration in the following
        manner:

      A.   If
        the
        Buyer (which may consist of more than one Partner) and Seller can agree on
        an
        arbitrator, then such arbitrator shall resolve the dispute.

      

      
        
          
             

          

          
            22

            
              

            

          

          
             

          

        

      

      

      B.   If
        the
        Buyer and Seller cannot agree upon one arbitrator, then each party shall
        select
        one arbitrator and the two arbitrators so selected shall select a
        third.

      C.   The
        written decision of the single arbitrator or a majority of said arbitrators,
        as
        the case may be, shall constitute the arbitration award, and all parties
        to such
        arbitration agree to be bound thereby. The Buyer shall pay one-half (1/2)
        and
        the Seller shall pay one-half (1/2) of all costs of arbitration.

      D.   Arbitrators
        so selected shall not be related to any party to this Agreement within the
        third
        degree as defined by the laws of the State of California.

      E.   Such
        arbitrators shall have one or more of the following qualifications: (i) Attorney
        at Law admitted to practice in California; or (ii) licensed Public Accountant
        or
        Certified Public Accountant.

      F.   All
        arbitration proceedings shall be completed within sixty (60) days after
        commencement.

      G.   The
        arbitration shall be conducted in accordance with the procedures set forth
        in
        the California Code of Civil Procedures commencing with Section 1280, et
        seq. In
        addition, the arbitrators may adopt such additional rules and procedures
        as they
        may deem fair and reasonable under the circumstances and all such rules and
        procedures shall be binding upon the Buyer and Seller without limited the
        generality of the foregoing the arbitrators may require one or more appraisals
        of the Property.

      

      NOTICE:
        BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING
        OUT OF THE MATTERS INCLUDED IN THE ARBITRATION OF DISPUTES PROVISION DECIDED
        BY
        NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY
        RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY
        TRIAL.
        BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO
        DISCOVERY AND APPEAL, UNLESS SUCH RIGHTS ARE SPECIFICALLY INCLUDED IN THE
        ‘ARBITRATION OF DISPUTES’ PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION
        AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER
        THE
        AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS
        ARBITRATION PROVISION IS VOLUNTARY.

      

      

      
        
          
             

          

          
            23

            
              

            

          

          
             

          

        

      

      

      We
        have
        read and understand the foregoing and agree to submit disputes arising out
        of
        the matters included in the ‘Arbitration of Disputes’ provision to neutral
        arbitration.

      

      
        	
                ____________

              	
                ____________

              
	
                JRC

              	
                SPIC

              

      

      

      8.2    DISPUTE
        RESOLUTION.
        EXCEPT
        AS OTHERWISE PROVIDED IN SECTION 8.1, ANY CONTROVERSY, CLAIM, ACTION OR DISPUTE
        ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE HEARD BY A REFERENCE
        PURSUANT TO THE PROVISIONS OF CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS
        638
        THROUGH 645.1, INCLUSIVE, ACCORDING TO THE FOLLOWING PROCEDURES:

      A.   THE
        PARTIES SHALL AGREE UPON A SINGLE REFEREE WHO SHALL THEN TRY ALL ISSUES,
        WHETHER
        OF FACT OR LAW, AND REPORT A FINDING AND JUDGMENT THEREON. IF THE PARTIES
        ARE
        UNABLE TO AGREE UPON A REFEREE WITHIN TEN (10) DAYS OF A WRITTEN REQUEST
        TO DO
        SO BY ANY PARTY, THEN ANY PARTY MAY THEREAFTER SEEK TO HAVE A REFEREE APPOINTED
        PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 638 AND
        640;

      B.   THE
        PARTIES AGREE THAT THE REFEREE SHALL HAVE THE POWER TO DECIDE ALL ISSUES
        OF FACT
        AND LAW AND REPORT HIS/HER DECISION THEREON, AND TO ISSUE ALL LEGAL AND
        EQUITABLE RELIEF APPROPRIATE UNDER THE CIRCUMSTANCES OF THE CONTROVERSY BEFORE
        HIM/HER; PROVIDED, HOWEVER, THAT TO THE EXTENT THE REFEREE IS UNABLE TO ISSUE
        AND/OR ENFORCE ANY SUCH LEGAL AND EQUITABLE RELIEF, EITHER PARTY MAY PETITION
        THE COURT TO ISSUE AND/OR ENFORCE SUCH RELIEF ON THE BASIS OF THE REFEREE'S
        DECISION;

      C.   THE
        CALIFORNIA EVIDENCE CODE RULES OF EVIDENCE AND PROCEDURE RELATING TO THE
        CONDUCT
        OF THE HEARING, EXAMINATION OF WITNESSES AND PRESENTATION OF EVIDENCE SHALL
        APPLY;

      D.   ANY
        PARTY
        DESIRING A STENOGRAPHIC RECORD OF THE HEARING MAY SECURE A COURT REPORTER
        TO
        ATTEND THE HEARING; PROVIDED, THE REQUESTING PARTY NOTIFIES THE OTHER PARTIES
        OF
        THE REQUEST AND PAYS FOR THE COSTS INCURRED BY THE COURT REPORTER;

      

      
        
          
             

          

          
            24

            
              

            

          

          
             

          

        

      

      

      E.   THE
        REFEREE SHALL ISSUE A WRITTEN STATEMENT OF DECISION WHICH SHALL BE REPORTED
        TO
        THE COURT IN ACCORDANCE WITH CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 643
        AND
        MAILED PROMPTLY TO THE PARTIES;

      F.   JUDGMENT
        MAY BE ENTERED ON THE DECISION OF THE REFEREE IN ACCORDANCE WITH CALIFORNIA
        CODE
        OF CIVIL PROCEDURE SECTION 644, AND THE DECISION MAY BE EXCEPTED TO, CHALLENGED
        AND APPEALED ACCORDING TO LAW;

      G.   THE
        PARTIES SHALL PROMPTLY AND DILIGENTLY COOPERATE WITH ONE ANOTHER AND THE
        REFEREE, AND SHALL PERFORM SUCH ACTS AS MAY BE NECESSARY TO OBTAIN A PROMPT
        AND
        EXPEDITIOUS RESOLUTION OF THE DISPUTE OR CONTROVERSY IN ACCORDANCE WITH THE
        TERMS HEREOF; AND

      H.   THE
        COST
        OF SUCH PROCEEDING, INCLUDING BUT NOT LIMITED TO THE REFEREE'S FEES, SHALL
        INITIALLY BE BORNE EQUALLY BY THE PARTIES TO THE DISPUTE OR CONTROVERSY.
        HOWEVER, THE PREVAILING PARTY IN SUCH PROCEEDING SHALL BE ENTITLED, IN ADDITION
        TO ALL OTHER COSTS, TO RECOVER ITS CONTRIBUTION FOR THE COST OF THE REFERENCE
        AND ITS REASONABLE ATTORNEYS' FEES AS ITEMS OF RECOVERABLE COSTS.

      8.3    Amendments.
        This
        Agreement may be amended at any time and from time to time, but any amendment
        must be in writing and signed by each person who is then a Partner.

      8.4    Indemnification.
        Except
        for those claims arising out of James R. Conkey’s willful and grossly negligent
        acts or omissions, to the fullest extent permitted by law, the Partnership
        shall, indemnify, defend (with counsel satisfactory to James R. Conkey),
        protect, and save and hold James R. Conkey and its employees, agents, successors
        and assigns, and the respective heirs, personal representatives, successors
        and
        assigns of each of the foregoing, and each of them (the foregoing persons
        being
        collectively referred to, individually, as an “Indemnitee Party,” and,
        collectively, as the “Indemnitee Parties”), harmless of, from and against any
        and all claims, liabilities, obligations, damages, recoveries, losses, demands,
        actions, causes of action, liens, penalties, costs and expenses, including,
        without limitation, attorneys’ fees and costs, of any kind whatsoever, at law or
        in equity, known or unknown, matured or unmatured, arising from or relating
        to
        work done by or for the Partnership under the James R. Conkey’s Contractor’s
        License, including, without limitation, any claims asserted against James
        R.
        Conkey and/or the Contractor’s License while and for so long as JRC is a Partner
        of the Partnership (collectively, “Claims”), and any and all costs and expenses
        including, without limitation, all court costs and arbitration costs and
        all
        reasonable attorneys’ fees suffered or incurred by any Indemnitee Party in
        connection with any of the foregoing Claims.

      

      
        
          
             

          

          
            25

            
              

            

          

          
             

          

        

      

      

      8.5    Notices.
        This
        Agreement shall be directed to the parties at the addresses hereinbefore
        or
        hereinafter set forth opposite their respective names, or at such other places
        as the Partnership shall be so notified, in writing, by the Partners; and
        to the
        Partnership, at its principal office, by registered or certified mail. All
        notices so given shall be deemed delivered three (3) days after the postmark
        date. In lieu of the foregoing all Notices may be personally served in the
        same
        manner as service is perfected in the event of serving a complaint filed
        in a
        Superior Court for the State of California. The date of personal service
        shall
        be the date of delivery.

      8.6    Governing
        Law.
        All
        questions with respect to the construction of this Agreement and the rights
        and
        liabilities of the parties hereto shall be governed by the laws of the State
        of
        California.

      8.7    Binding
        on Heirs and Successors.
        Subject
        to the restrictions against assignment as herein contained, this Agreement
        shall
        inure to the benefit of and shall be binding upon the assigns, successors
        in
        interest, personal representatives, estates, heirs, and legatees of each
        of the
        parties hereto.

      8.8    Counterparts.
        This
        Agreement may be exercised in several counterparts and all so executed shall
        constitute one agreement which shall be binding on all the parties hereto,
        notwithstanding that all of the parties are not signatory to the original
        or the
        same counterpart.

      8.9    Attorneys'
        Fees.
        Should
        any litigation or arbitration be commenced between the parties hereto concerning
        this Agreement, or the rights and duties of the Partners in relation thereto,
        the party prevailing in such litigation or arbitration shall be entitled,
        in
        addition to such other relief as may be granted, to a reasonable sum as and
        for
        his attorneys' fees in such litigation which shall be determined by the court
        in
        such litigation or in a separate action brought for that purpose.

      

      
        
          
             

          

          
            26

            
              

            

          

          
             

          

        

      

      

      8.10   
         Coordination
        with Uniform Partnership Act.
        To the
        extent any subject is addressed in this Agreement, it shall override the
        provisions of the Uniform Partnership Act unless otherwise provided by
        law.

      8.11   
         Section
        754 Election.
        All
        Partners shall execute a consent to the election under Internal Revenue Code
        Section 754 and its State counterpart on request of the Managing
        Partner.

      

      EXECUTED
        on _______________, 2007, at __________, California.

      

      
        	 	
                GENERAL
                  PARTNERS:

              
	 	 	 
	 	
                J.R.
                  CONKEY & ASSOCIATES, INC.,

              
	 	
                a
                  California corporation

              
	 	 	 
	 	 	 
	 	
                By:

              	
                _____________________________________

              
	 	 	
                JAMES
                  R. CONKEY

              
	 	
                Its:

              	
                _____________________________________

              
	 	 	 
	 	 	 
	 	
                SOLAR
                  POWER INTEGRATORS, 

              
	 	
                COMMERCIAL,
                  INC., a California corporation

              
	 	 	 
	 	
                By:

              	
                _____________________________________

              
	 	 	
                _____________________________________

              
	 	
                Its:

              	
                _____________________________________

              

      

      
 

       

       

       

       

      27

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