Document:

Executive Employment Agreement

 Exhibit 10.1 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 THIS EXECUTIVE EMPLOYMENT AGREEMENT (this
“Agreement”) is entered into as of March 31, 2011 (the “Effective Date”), by and between Ascent Solar Technologies, Inc., a Delaware corporation (the “Company”), and Ron Eller (the
“Executive”). 
 RECITALS 
 A. The Company desires to employ the Executive as President and Chief Executive Officer of the Company. 
 B. The Executive agrees to perform the services of President and Chief Executive Officer for the Company in accordance with the terms and conditions of this Agreement. 

AGREEMENT 

NOW, THEREFORE, in consideration of the respective covenants and agreements of the parties contained in this Agreement, the Company and
Executive agree as follows: 
 1. Term. The term of this Agreement shall commence on March 31, 2011 (the
“Start Date”) and shall continue until terminated in accordance with the provisions of this Agreement. 
 2.
Duties. The Executive will devote his full business time, energies and best efforts to the promotion of the business and affairs of the Company, with responsibility to perform such duties customary of his title and position, and such
additional duties that may be specified from time to time by the Board of Directors of the Company (the “Board”). The initial location at which the Executive shall perform services for the Company shall be the Company’s
headquarters in Thornton, Colorado. Notwithstanding the foregoing nothing herein shall prohibit Executive from spending a portion of his business time to serve on one or more corporate boards with prior consent of the Board (which consent is granted
with respect to one board as of the date of this Agreement), or for charitable purposes provided that such activities do not interfere with the performance of his duties to the Company. 

3. Compensation and Benefits. 
 a) Base Compensation. In consideration of all services to be rendered by the Executive to the Company, the Company will pay to the Executive the base salary of three hundred fifty thousand dollars
($350,000) per year from the Start Date through the termination of this Agreement and any extensions of it, subject to such increases as the Board may determine, and payable in accordance with the Company’s standard payroll practices
(“Base Salary”). 
 b) Bonus Compensation. As further compensation, the Company may pay to the Executive
an annual bonus of up to one hundred percent (100%) of Base Salary, at such times and in such amounts at the sole discretion of the Board or its Compensation Committee. 
 c) Equity Compensation. As further compensation, on the Start Date and upon approval by the Compensation Committee of the Board, the Company will grant the Executive: 

 

	 	i.	 150,000 restricted stock units (“CEO RSUs”), which shall be governed by and be issued under the Company’s Second Amended and
Restated 2008 Restricted Stock Plan. Such CEO RSUs shall vest according to the following schedule: 37,500 CEO 

  
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RSUs shall vest on the first anniversary of the Start Date; 37,500 CEO RSUs shall vest on the second anniversary of the Start Date; 37,500 CEO RSUs shall vest on the third anniversary of the
Start Date; and 37,500 CEO RSUs shall vest on the fourth anniversary of the Start Date. 

  

	 	ii.	Stock options to purchase up to 200,000 shares (“CEO Stock Options”) of the Company’s common stock, vesting in equal amounts on the first, second,
third and fourth anniversaries of the Start Date (i.e., 25% each year). Such CEO Stock Options shall be granted effective as of the Start Date, at an exercise price equal to the closing price of the Company’s common stock on Nasdaq on the Start
Date. Such CEO Stock Options shall be governed by and be issued under the Company’s Fourth Amended and Restated 2005 Stock Option Plan. 

 d) Performance-based Compensation. Performance criteria to be used in the evaluation of the Executive’s performance and calculation of compensation shall be determined and approved by the
Compensation Committee of the Board, and no performance-based compensation shall be paid or deemed vested unless and until the Compensation Committee determines that the performance warrants such payment. 

e) Taxes. Executive shall be solely responsible for the satisfaction of all federal, state, local and foreign income and other
individual tax arising from or applicable to the acquisition, vesting, exercise or sale of Executive’s cash and equity compensation. 
 f) Vacation. The Executive will receive four (4) weeks of paid vacation for each calendar year of this Agreement. Vacation will be prorated in the event of termination pursuant to
Section 5. The Executive will not be entitled to carry over accrued but unused vacation from one contract year to the next. 
 g) Benefit Plans. To the extent permitted by law and except as otherwise may be determined by the Board, the Executive will be eligible to participate in the Company’s standard benefit plans
according to plan provisions. 
 4. Confidential Information. 

a) Company Information. Executive agrees at all times during the term of his employment and thereafter, to hold in strictest
confidence, and not to use, except for the benefit of the Company, or to disclose to any person, firm or corporation without written authorization of the Board, any Confidential Information (as defined below) of the Company. For purposes of this
Agreement “Confidential Information” is defined as any Company proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, customer lists and
customers, markets, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances or other business information. Confidential Information does not include
any of the foregoing items which has become publicly known and made generally available through no wrongful act of Executive or of others who were under confidentiality obligations as to the item or items involved. 

b) Third Party Information. Executive recognizes that the Company has received and in the future will receive from third parties
their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. Executive agrees to hold all such confidential or
proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in 

  
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 carrying out his work for the Company consistent with the Company’s agreement with such
third party. 
 c) Employee Invention Assignment and Non-Disclosure Agreement. At the Company’s request, the
Executive will promptly execute the Company’s standard form of employee invention assignment and non-disclosure agreement. 

5. Termination of Employment. 
 a) Termination for Cause. Notwithstanding any provision contained in this Agreement to the contrary, the Company may immediately terminate this Agreement for Cause (as defined below) without giving
advance notice to the Executive or compensation in excess of that set forth in Section 6(a) below. For purposes of this Agreement “Cause” includes but is not limited to the following: (i) the conviction of the Executive or
a pleading of guilty or nolo contendere to any felony, any misdemeanor where imprisonment is imposed, or any crime involving moral turpitude; (ii) commission of any act of theft, fraud or dishonesty, or any knowing or negligent
falsification of any Company records; (iii) a material breach by Executive of his obligations under this Agreement, which will include improper disclosure of the Company’s confidential or proprietary information or a failure to perform
such duties as are reasonably assigned to the Executive by the Board, which is not cured within 60 days following written notice by the Company of such failure; (iv) a course of conduct amounting to gross incompetence; (v) chronic and
unexcused absenteeism which is not cured within 30 days following written notice by the Company of such failure; (vi) any act by Executive of disloyalty to the Company; or (vii) any violation of Executive’s other fiduciary duties to
the Company. 
 b) Termination Without Cause. Either the Company or the Executive may terminate this Agreement without
Cause on giving not less than 30 days’ prior written notice to the other party. 
 c) Disability. Unless prohibited
by applicable law, this Agreement shall be automatically terminated if the Executive suffers a Permanent Disability (as defined below). For purposes of this Agreement, “Permanent Disability” is defined as the Executive’s
inability, due to illness, accident, or other cause, to perform the majority of his usual duties for a period of three (3) months or more despite reasonable accommodation by the Company. Notwithstanding the foregoing, if the disabled Executive
and the Company agree, the disabled Executive may thereafter be employed by the Company upon such terms as may be mutually agreeable. 
 d) Death. If the Executive dies, this Agreement will automatically terminate. 
 e) Transition. Upon termination of employment, the Executive shall: (1) cooperate with the Company, to the extent reasonably requested by the Company, to effect a smooth transition of the
Executive’s responsibilities and to ensure that the Company is aware of all matters being handled by the Executive; (2) return to the Company all documents and other items provided to the Executive by the Company, or developed or obtained
by the Executive, in connection with his employment with the Company, or otherwise belonging to the Company; and (3) if requested by the Board, resign all positions the Executive holds with the Company (including the position of a director on
the Board). 
 6. Compensation Upon Termination. 

a) Termination for Cause. If the Executive is terminated for Cause pursuant to Section 5(a), the Company will pay the
Executive only his Base Salary accrued through the date of termination in accordance with the normal payroll practices of the Company. 
 b) Termination Without Cause. If the Executive is terminated by the Company without 

  
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 Cause pursuant to Section 5(b) (except in connection with a Change of Control, which is
addressed in Section 7(b) below), and the Executive signs and does not revoke a release of claims with the Company (in a form reasonably acceptable to the Company and Executive) and provided that such release of claims becomes effective no
later than sixty (60) days following the termination date or such earlier date required by the release agreement, (i) if such termination occurs during the 12 month period following the Start Date, then the Company will pay the Executive
his Base Salary for a period of six (6) months after the date of termination in accordance with the normal payroll practices of the Company; (ii) if such termination occurs after the first anniversary of the Start Date, then the Company
will pay the Executive his Base Salary for a period of twelve (12) months after the date of termination in accordance with the normal payroll practices of the Company; (iii) the Company will cause the CEO Stock Options and CEO RSUs only
(but not any pre-existing or later granted options and restricted stock units of the Executive unless specifically provided for by the terms of such options and units) which would vest based on time during the 12 month period following the
termination to vest and become exercisable on the termination date; and (iv) all vested CEO Stock Options shall remain exerciseable during the 12 month period following the date on which the Executive ceases to be a “Service Provider”
(as such term is defined in the Company’s Stock Option Plan). If the Executive terminates this Agreement without Cause pursuant to Section 5(b), the Company will pay the Executive his Base Salary through the effective date of termination
in accordance with the normal payroll practices of the Company. 
 c) Disability. In the event of the Executive’s
Permanent Disability, the Executive shall be entitled to receive from the Company his Base Salary until the earlier of termination of this Agreement in accordance with Section 5(c) or the time when any disability insurance policy available
through the Executive’s employment begins to pay benefits, and thereafter the Executive will receive any disability insurance benefits to which the Executive is entitled. 
 d) Death. If this Agreement terminates due to the death of the Executive, then any interests that the Executive may have under the provisions of this Agreement will be payable to the
Executive’s estate inclusive of Base Salary provided for in this Agreement as if the Executive terminated his employment without Cause. 
 7. Change of Control. 
 a) Definition. “Change of
Control” will mean the occurrence of any of the following events: 
 i. Change in Ownership of the Company. A
change in the ownership of the Company which occurs on the date that any one person or group of affiliated persons acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by
such Person, constitutes more than 50% of the total voting power of the stock of the Company, except that any change in the ownership of the stock of the Company as a result of a private financing or a public offering of the Company that is approved
by the Company’s Board, or the exercise of options, warrants or other convertible securities the issuance of which is approved by the Board, will not be considered a Change of Control; or 

ii. Change in Effective Control of the Company. A change in the effective control of the Company which occurs on the date that a
majority of members of the Board is replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. For purposes
of this clause (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change of Control; or 

  
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 iii. Change in Ownership of a Substantial Portion of the Company’s Assets. A
change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such
person or persons) assets from the Company that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions. For
purposes of this clause (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. 

b) Termination Without Cause or for Good Reason in Connection with Change of Control. If (1) within twelve (12) months
after a Change of Control, the Company terminates the Executive’s employment with the Company without Cause, or (2) within twelve (12) months after a Change of Control, the Executive resigns for Good Reason (defined below), and the
Executive signs and does not revoke a release of claims with the Company (in a form reasonably acceptable to the Company and Executive) and provided that such release of claims becomes effective no later than sixty (60) days following the
termination date or such earlier date required by the release agreement, then the Executive will receive the following: 
 i.
Accrued Compensation. The Company will pay the Executive all accrued but unpaid vacation, expense reimbursements, wages, and other benefits due to the Executive under any Company-provided plans, policies, and arrangements and earned through
the date of termination in a lump-sum payment (to the extent practicable and less applicable withholding taxes) within sixty (60) calendar days after the termination date; 

ii. Severance Payment. The Executive will receive a lump-sum payment (less applicable withholding taxes) within sixty
(60) calendar days after the termination date equal to 100% of the Executive’s annual Base Salary as in effect immediately prior to the Executive’s termination date or, if greater, at the level in effect immediately prior to the
Change of Control; and 
 iii. Continued Employee Benefits. If the Executive elects continuation coverage pursuant to the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), for the Executive and his eligible dependents, within the time period prescribed pursuant to COBRA, the Company will reimburse the Executive for the COBRA
premiums for such coverage (at the coverage levels in effect immediately prior to the Executive’s termination and including reimbursement for any taxes paid by Executive with respect to such payments) until the earlier of (A) a period
twelve (12) months from the last date of employment of the Executive with the Company, or (B) the date upon which the Executive and/or his eligible dependents becomes covered under similar plans. COBRA reimbursements will be made by the
Company to the Executive consistent with the Company’s normal expense reimbursement policy. 
 iv. Accelerated
Vesting. The CEO Stock Options and the CEO RSUs only (but not any pre-existing or later granted options and restricted stock units of the Executive unless specifically provided for by the terms of such options and units) will, as of the date of
such termination in connection with a Change of Control, be deemed vested and exercisable for such additional portion of the CEO Stock Options and CEO RSUs which would vest based on time during the 12 month period following such termination.

 c) Limitation on Payment. Notwithstanding any provision to the contrary contained in this Agreement, if the cash
payments due and the other benefits to which Executive shall become entitled under this Section 7, either alone or together with other payments in the nature of compensation to Executive which are contingent on a change in the ownership or
effective control of the Company or in 

  
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 the ownership of a substantial portion of the assets of the Company or otherwise, would
constitute a “parachute payment” (as defined in Section 280G of the Code the Internal Revenue Code of 1986, as amended (the “Code”) or any successor provision thereto), such payments or benefits shall be reduced (but
not below zero) to the largest aggregate amount as will result in no portion thereof being subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or being non-deductible to the Company for federal
income tax purposes pursuant to Section 280G of the Code (or any successor provision thereto), provided, however, that the foregoing reduction will be made only if and to the extent that such reduction would result in an increase in the
aggregate payment and benefits to be provided to Executive, determined on an after-tax basis (taking into account the excise tax imposed pursuant to Section 4999 of the Code, or any successor provision thereto, any tax imposed by any comparable
provision of state law, and any applicable federal, state and local income taxes). Executive agrees to take such action as Employer reasonably requests to mitigate or challenge the application of such tax, provided that Employer shall supply such
counsel and expert advice, including legal counsel and accounting advice, as may reasonably be required, and shall be responsible for the payment of such experts’ fees. 
 d) Good Reason. For purposes of this Section 7, “Good Reason” shall mean: (1) the Company changes, reduces or diminishes the Executive’s title or duties such that
they are not generally consistent with the Executive’s title immediately prior to the Change of Control; (2) the Company relocates the Executive’s primary place of employment outside the Denver, Colorado metropolitan area without the
Executive’s consent; (3) in connection with the Change in Control the Company shall materially reduce the salary of Executive payable in accordance with this Agreement, or materially reduce in the kind and/or level any employee benefits to
which Executive was entitled prior to such Change in Control except any such changes that apply broadly to the employee population of the Company; or (4) the failure by the Company to obtain the assumption of this Agreement by any successor.
The Executive’s termination of employment will not constitute a resignation for Good Reason unless the Executive first provides written notice to the Company of the existence of the Good Reason within ninety days following the effective date of
the occurrence of the Good Reason, and the Good Reason remains uncorrected by the Company for more than thirty days following such written notice of the Good Reason from the Executive to the Company. 

8. Non-Competition. For a period of two (2) years after termination of the Executive’s employment at the Company,
the Executive shall not, without the prior express written permission of the Company, work as an employee, officer, director, consultant, contractor, advisor, or agent of any company or person in the business of designing, manufacturing or selling
thin-film photovoltaic technology. The Executive acknowledges and agrees that the market for the Company’s thin-film photovoltaic products is worldwide and not confined to a discrete geographic locale, and that the identity of competitors is
likely to change over time. 
 9. Non-Solicitation. The Executive agrees that for a period of two (2) years
after termination of the Executive’s employment at the Company, the Executive shall not directly or indirectly solicit, induce, recruit or encourage any of the Company’s employees to leave their employment at the Company. Notwithstanding
the foregoing, a general advertisement by a subsequent employer of the Executive that is not specifically directed to such employees shall not be deemed a violation of this Section 9. 

10. Board Approval. No part of this Agreement will be effective or binding upon the parties unless and until approved or
ratified by the Board or its Compensation Committee. 
 11. Successors. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the 

  
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 Company to expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such succession had taken place. 
 12.
Arbitration. Any dispute or controversy arising under or in connection with this Agreement will be settled exclusively by arbitration in Denver, Colorado, in accordance with the rules of the American Arbitration Association then in effect
by an arbitrator selected by both parties within 10 days after either party has notified the other in writing that it desires a dispute between them to be settled by arbitration. In the event the parties cannot agree on such arbitrator within such
10-day period, each party will select an arbitrator and inform the other party in writing of such arbitrator’s name and address within 5 days after the end of such 10-day period and the two arbitrators so selected will select a third arbitrator
within 15 days thereafter; provided, however, that in the event of a failure by either party to select an arbitrator and notify the other party of such selection within the time period provided above, the arbitrator selected by the other party will
be the sole arbitrator of the dispute. Each party will pay its own expenses associated with such arbitration, including the expense of any arbitrator selected by such party and the parties will equally share the expenses of the jointly selected
arbitrator. The decision of the arbitrator or a majority of the panel of arbitrators will be binding upon the parties and judgment in accordance with that decision may be entered in any court having jurisdiction thereover. Punitive damages will not
be awarded. The prevailing party shall be entitled to recover reasonable attorneys fees and costs associated with the arbitration. 
 13. Absence of Conflict. The Executive represents and warrants that his employment by the Company as described herein will not conflict with and will not be constrained by any prior
employment or consulting agreement or relationship. 
 14. Assignment. This Agreement and all rights under this
Agreement will be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective personal or legal representatives, executors, administrators, heirs, distributees, devisees, legatees, successors and assigns.
This Agreement is personal in nature, and neither of the parties to this Agreement will, without the written consent of the other, assign or transfer this Agreement or any right or obligation under this Agreement to any other person or entity;
except that the Company may assign this Agreement to any of its affiliates or wholly-owned subsidiaries, provided, that such assignment will not relieve the Company of its obligations hereunder. 

15. Integration. This Agreement represents the entire agreement and understanding between the parties as to the subject
matter hereof and supersede all prior or contemporaneous agreements whether written or oral. No waiver, alteration, or modification of any of the provisions of this Agreement will be binding unless in writing and signed by duly authorized
representatives of the parties hereto. 
 16. Waiver; Amendment. Failure or delay on the part of either party
hereto to enforce any right, power, or privilege hereunder will not be deemed to constitute a waiver thereof. Additionally, a waiver by either party or a breach of any promise hereof by the other party will not operate as or be construed to
constitute a waiver of any subsequent waiver by such other party. This Agreement may only be amended in a writing signed the Executive and the Company. 
 17. Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this
Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 

  
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 18. Headings. The headings of the paragraphs contained in this Agreement are
for reference purposes only and will not in any way affect the meaning or interpretation of any provision of this Agreement. 

19. Applicable Law. This Agreement will be governed by and construed in accordance with the internal substantive laws, and
not the choice of law rules, of the State of Colorado. 
 20. Counterparts. This Agreement may be executed in one
or more counterparts, none of which need contain the signature of more than one party hereto, and each of which will be deemed to be an original, and all of which together will constitute a single agreement. 

21. Survival of Terms. The Executive’s obligations contained in Sections 4, 8 and 9 shall survive termination of this
Agreement. 
 22. Compliance with Section 409A. Notwithstanding anything herein to the contrary, if the
Executive is a “specified employee” (as defined in Section 409A of the Internal Revenue Code of 1986, as amended) on the date of termination, to the extent required by Section 409A, payments hereunder shall be delayed until the
earlier of (i) the date which is six (6) months after the date of termination or, (ii) the date of the Executive’s death. 
 [signature page follows] 

  
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 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the Effective Date. 
  

							
	COMPANY:	 		 	ASCENT SOLAR TECHNOLOGIES, INC.
				
		 		 	By:	 	 /s/ Amit Kumar

		 		 	Name:	 	Amit Kumar
		 		 	Title:	 	Chairman of the Board
		 		 	Date:	 	March 31, 2011

  

							
	EXECUTIVE:	 		 	 /s/ Ron Eller

		 		 	Ron Eller
		 		 	Date:	 	March 31, 2011

  
 9Unassociated Document

 

NONQUALIFIED STOCK OPTION AGREEMENT

INSPIREMD, INC.

2011 UMBRELLA OPTION PLAN – U.S. APPENDIX

1.           Grant of Option.  Pursuant to the 2011 U.S. Equity Incentive Plan (the “U.S. Appendix”), a sub-plan to the InspireMD, Inc. 2011 UMBRELLA Option Plan (the “Umbrella Plan”)(collectively, the Umbrella Plan and U.S. Appendix being referred to herein as, the “Plan”) for employees, consultants, outside directors, and  other service providers of InpsireMD, Inc., a Delaware corporation (the “Company”) and its subsidiaries and affiliates (the “Group”), the Company grants to

_________________________

(the “Participant”),

an option to purchase Shares of the Company as follows:

On the date hereof, the Company grants to the Participant an option (the “Stock Option”) to purchase ___________________ (__________) full Shares (the “Optioned Shares”) at an Exercise Price equal to $________ per share.  The “Date of Grant” of this Stock Option is _________________, 20__.

The “Option Period” shall commence on the Date of Grant and shall expire on the date immediately preceding the tenth (10th) anniversary of the Date of Grant, unless terminated earlier in accordance with Section 4 below.  The Stock Option is a nonqualified stock option.  This Stock Option is intended to comply with the provisions governing nonqualified stock options under the final Treasury Regulations issued on April 17, 2007, in order to exempt this Stock Option from application of Section 409A of the Code.

2.           Subject to Plan.  The Stock Option and its exercise are subject to the terms and conditions of the Plan, and the terms of the Plan shall control to the extent not otherwise inconsistent with the provisions of this Agreement.  The capitalized terms used herein that are defined in the Plan shall have the same meanings assigned to them in the Plan.  The Stock Option is subject to any rules promulgated pursuant to the Plan by the Board or the Administrator and communicated to the Participant in writing.

3.           Vesting; Time of Exercise.  Except as specifically provided in this Agreement and subject to certain restrictions and conditions set forth in the Plan, the Optioned Shares shall be vested and exercisable as follows:

a.           Twenty-five percent (25%) of the Optioned Shares shall vest and become exercisable upon the expiration of twelve (12) months after the Date of Grant (the “First Vesting Date”); provided that the Participant is continuously employed by or providing services to the Group from the Date of Grant until the First Vesting Date.

b.           The remaining Optioned Shares shall vest and become exercisable in twelve (12) equal portions of one-sixteenth (1/16) of the Optioned Shares, each portion vesting on the last day of each three (3) month period, the first of which shall commence on the first (1st) day following First Vesting Date (each, a “Quarterly Vesting Period”), provided that the Participant is continuously employed by or providing services to the Group from the First Vesting Date or preceding Quarterly Vesting Date through the last day of the applicable Quarterly Vesting Period.

 

  

  

  

 

c.           [In the event that (i) a Transaction occurs, (ii) this Agreement is not assumed by the Successor Company or the Acquiring Company, as applicable, (iii) the Successor Company or the Acquiring Company, as applicable, does not substitute its own stock option for this Stock Option, then upon the effective date of such Transaction, the total Optioned Shares not previously vested shall thereupon immediately become fully vested and this Stock Option shall become fully exercisable, if not previously so exercisable.]

4.           Term; Forfeiture.

a.           Except as otherwise provided in this Agreement, to the extent the unexercised portion of the Stock Option relates to Optioned Shares which are not vested on the Participant’s Termination Date, the Stock Option will be terminated on that date.  The unexercised portion of the Stock Option that relates to Optioned Shares which are vested will terminate at the first of the following to occur:

i.           5 p.m. on the date the Option Period terminates;

ii.           5 p.m. on the date which is twenty-four (24) months following the date of the Participant’s termination of service due to death;

iii.           5 p.m. on the date which is twelve (12) months following the date of the Participant’s termination of service due to disability;

iv.           5 p.m. on the date which is ninety (90) days following the date of the Participant’s termination of service by the Company without Cause (as defined below);

v.           5.p.m. on the date of the Participant’s termination of service for Cause (as defined below);

vi.           5 p.m. on the date which is thirty (30) days following the date of the Participant’s termination of service for any reason not otherwise specified in this Section 4.a.;

vii.           5 p.m. on the date the Company causes any portion of the Stock Option to be forfeited pursuant to Section 7 hereof.

b.           For the purposes hereof, “Cause” shall exist if the Participant (i) breaches any of the material terms or conditions of his employment agreement, or agreement to provide services to the Group, including, without limitation, the breach of any duty of non-disclosure or non-competition; (ii) engages in willful misconduct or acts in bad faith with respect to any company in the Group in connection with his employment or other agreement with the Group; or (iii) is convicted of a criminal offence involving moral turpitude.

c.           Notwithstanding anything herein to the contrary, if the Participant is terminated for Cause, then all Optioned Shares (including vested Optioned Shares), whether exercisable or not on the date that the Group delivers to the Participant a termination notice, shall expire and may not be exercised, and the Shares covered by the Stock Options shall revert to the Plan.

5.           Who May Exercise.  Subject to the terms and conditions set forth in Sections 3 and 4 above, during the lifetime of the Participant, the Stock Option may be exercised only by the Participant, or by the Participant’s guardian or personal or legal representative.  If the Participant’s termination of service is due to his death prior to the dates specified in Section 4.a. hereof, and the Participant has not exercised the Stock Option as to the maximum number of vested Optioned Shares as set forth in Section 3 hereof as of the date of death, the following persons may exercise the exercisable portion of the Stock Option on behalf of the Participant at any time prior to the earliest of the dates specified in Section 4.a. hereof: the personal representative of his estate, or the person who acquired the right to exercise the Stock Option by bequest or inheritance or by reason of the death of the Participant; provided that the Stock Option shall remain subject to the other terms of this Agreement, the Plan, and applicable laws, rules, and regulations.

 

  

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6.           No Fractional Shares.  The Stock Option may be exercised only with respect to full shares, and no fractional Share shall be issued.

7.           Manner of Exercise.  Subject to such administrative regulations as the Administrator may from time to time adopt, the Stock Option may be exercised by the delivery of the Exercise Notice to the Company setting forth the number of Shares with respect to which the Stock Option is to be exercised, the date of exercise thereof (the “Exercise Date”) which shall be at least three (3) days after giving such notice unless an earlier time shall have been mutually agreed upon.  On the Exercise Date, the Participant shall deliver to the Company consideration with a value equal to the total Exercise Price of the Shares to be purchased, payable as follows: cash, cashier’s check, or certified check payable to the order of the Company.

Upon payment of all amounts due from the Participant, the Company shall cause certificates for the Optioned Shares then being purchased to be delivered to the Participant (or the person exercising the Participant’s Stock Option in the event of his death) at its principal business office promptly after the Exercise Date.  The obligation of the Company to deliver Shares shall, however, be subject to the condition that if at any time the Company shall determine in its discretion that the listing, registration, or qualification of the Stock Option or the Optioned Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection with, the Stock Option or the issuance or purchase of Shares thereunder, then the Stock Option may not be exercised in whole or in part unless such listing, registration, qualification, consent, or approval shall have been effected or obtained free of any conditions not reasonably acceptable to the Company.

If the Participant fails to pay for any of the Optioned Shares specified in such notice or fails to accept delivery thereof, then the Stock Option, and right to purchase such Optioned Shares may be forfeited by the Participant.

8.           Nonassignability.  The Stock Option is not assignable or transferable by the Participant except by will or by the laws of descent and distribution.

9.           Rights as Stockholder.  The Participant will have no rights as a stockholder with respect to the Optioned Shares until the issuance of a certificate or certificates to the Participant or the registration of such shares in the Participant’s name for the Shares.  The Optioned Shares shall be subject to the terms and conditions of this Agreement.  Except as otherwise provided in Section 10 hereof, no adjustment shall be made for dividends or other rights for which the record date is prior to the issuance of such Shares.  The Participant, by his or her execution of this Agreement, agrees to execute any documents requested by the Company in connection with the issuance of the Shares.

10.           Adjustment of Number of Optioned Shares and Related Matters.  The number of Shares covered by the Stock Option, and the Exercise Prices thereof, shall be subject to adjustment in accordance with Section 9 of the Umbrella Plan and Articles VII and VII of the U.S. Appendix.

 

  

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11.           Nonqualified Stock Option.  The Stock Option shall not be treated as an “incentive stock option” under Section 422 of the Code.

12.           Voting.  The Participant, as record holder of some or all of the Optioned Shares following exercise of this Stock Option, has the exclusive right to vote, or consent with respect to, such Optioned Shares until such time as the Optioned Shares are transferred in accordance with this Agreement; provided, however, that this Section shall not create any voting right where the holders of such Optioned Shares otherwise have no such right.

13.           Specific Performance. The parties acknowledge that remedies at law will be inadequate remedies for breach of this Agreement and consequently agree that this Agreement shall be enforceable by specific performance.  The remedy of specific performance shall be cumulative of all of the rights and remedies at law or in equity of the parties under this Agreement.

14.           Participant’s Representations.  Notwithstanding any of the provisions hereof, the Participant hereby agrees that he will not exercise the Stock Option granted hereby, and that the Company will not be obligated to issue any Shares to the Participant hereunder, if the exercise thereof or the issuance of such Shares shall constitute a violation by the Participant or the Company of any provision of any law or regulation of any governmental authority.  Any determination in this connection by the Company shall be final, binding, and conclusive.  The obligations of the Company and the rights of the Participant are subject to all applicable laws, rules, and regulations.

15.           Participant’s Acknowledgments.  The Participant acknowledges that a copy of the Plan has been made available for his or her review by the Company, and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Stock Option subject to all the terms and provisions thereof.  The Participant hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the Administrator or the Board, as appropriate, upon any questions arising under the Plan or this Agreement.

16.           Law Governing.  This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Delaware (excluding any conflict of laws rule or principle of Delaware law that might refer the governance, construction, or interpretation of this agreement to the laws of another state).

17.           No Right to Continue Service or Employment.  Nothing herein shall be construed to confer upon the Participant the right to continue in the employ or to provide services to the Company or the Group, whether as an employee or as a consultant or as an outside director, or interfere with or restrict in any way the right of the Company or the Group to discharge the Participant at any time.

18.           Legal Construction.  In the event that any one or more of the terms, provisions, or agreements that are contained in this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect for any reason, the invalid, illegal, or unenforceable term, provision, or agreement shall not affect any other term, provision, or agreement that is contained in this Agreement and this Agreement shall be construed in all respects as if the invalid, illegal, or unenforceable term, provision, or agreement had never been contained herein.

19.           Covenants and Agreements as Independent Agreements. Each of the covenants and agreements that is set forth in this Agreement shall be construed as a covenant and agreement independent of any other provision of this Agreement.  The existence of any claim or cause of action of the Participant against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements that are set forth in this Agreement.

 

  

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20.           Entire Agreement.  This Agreement together with the Plan supersede any and all other prior understandings and agreements, either oral or in writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements between the parties with respect to the said subject matter.  All prior negotiations and agreements between the parties with respect to the subject matter hereof are merged into this Agreement.  Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement or the Plan and that any agreement, statement or promise that is not contained in this Agreement or the Plan shall not be valid or binding or of any force or effect.

21.           Parties Bound.  The terms, provisions, and agreements that are contained in this Agreement shall apply to, be binding upon, and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, and permitted successors and assigns, subject to the limitation on assignment expressly set forth herein.

22.           Modification.  No change or modification of this Agreement shall be valid or binding upon the parties unless the change or modification is in writing and signed by the parties; provided, however, that the Company may change or modify this Agreement without the Participant’s consent or signature if the Company determines, in its sole discretion, that such change or modification is necessary for purposes of compliance with or exemption from the requirements of Section 409A of the Code or any regulations or other guidance issued thereunder.  Notwithstanding the preceding sentence, the Company may amend the Plan to the extent permitted by the Plan.

23.           Headings.  The headings that are used in this Agreement are used for reference and convenience purposes only and do not constitute substantive matters to be considered in construing the terms and provisions of this Agreement.

24.           Gender and Number.  Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise.

25.           Notice.  Any notice required or permitted to be delivered hereunder shall be deemed to be delivered only when actually received by the Company or by the Participant, as the case may be, at the addresses set forth below, or at such other addresses as they have theretofore specified by written notice delivered in accordance herewith:

a.           Notice to the Company shall be addressed and delivered as follows:

 

InspireMD, Inc.

_____________________

_____________________

Attn:_________________                      

Facsimile:_____________                              

b.           Notice to the Participant shall be addressed and delivered as set forth on the signature page.

 

  

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26.           Tax Requirements.  The Participant is hereby advised to consult immediately with his or her own tax advisor regarding the tax consequences of this Agreement.  The Company or, if applicable, any subsidiary (for purposes of this Section 26, the term “Company” shall be deemed to include any applicable subsidiary), shall have the right to deduct from all amounts paid in cash or other form in connection with the Plan, any Federal, state, local, or other taxes required by law to be withheld in connection with this award.  The Company may, in its sole discretion, also require the Participant receiving Shares issued under the Plan to pay the Company the amount of any taxes that the Company is required to withhold in connection with the Participant’s income arising with respect to this award.  Such payments shall be required to be made when requested by Company and may be required to be made prior to the delivery of any Shares.  Such payment may be made (i) by the delivery of cash to the Company in an amount that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding obligations of the Company; (ii) if the Company, in its sole discretion, so consents in writing, the actual delivery by the exercising Participant to the Company of Shares, which Shares so delivered have an aggregate fair market value that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding payment; (iii) if the Company, in its sole discretion, so consents in writing, the Company’s withholding of a number of Shares to be delivered upon the exercise of this Stock Option, which shares so withheld have an aggregate fair market value that equals (but does not exceed) the required tax withholding payment; or (iv) any combination of (i), (ii), or (iii).  The Company may, in its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to the Participant.

 

* * * * * * * *

[Remainder of Page Intentionally Left Blank

Signature Page Follows.]

 

  

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and the Participant, to evidence his consent and approval of all the terms hereof, has duly executed this Agreement, as of the date specified in Section 1 hereof.

 

	 	COMPANY:	 
	 	 	 	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 

 

	 	PARTICIPANT:	 
	 	 	 	 
	 	 	 
	 	Signature	 
	
 

	
 

	 	 
	 	Name:	 	 
	 	Address:	 	 
	 	 	 	 
	 	 	 	 

 

 

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