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EXHIBIT 10.1

ENERGY FOCUS, INC. PROMISSORY NOTE

U.S. $50,000.00                                        December 30, 2022
                                        Solon, Ohio

FOR VALUE RECEIVED, the undersigned, Energy Focus, Inc., a Delaware corporation, with its principal office at 32000 Aurora Road, Suite B, Solon, Ohio 44139 (the “Company”), unconditionally promises to pay to Tingyu Lin (the “Lender”) or her permitted assigns, transferees and successors (collectively, the “Holder”), on September 30, 2023, at such place as may be designated in writing by the Holder, the principal sum of Fifty Thousand Dollars (U.S. $50,000.00), together with interest thereon, which interest shall not be due and payable until the Maturity Date, accrued at a rate per annum equal to 8.0% (computed on the basis of a three hundred sixty-five (365)-day year and based upon the number of days actually elapsed, from and after the date of this Note (the “Original Issue Date”). 
ARTICLE 1:  PAYMENTS AND OTHER PAYMENT TERMS.
1.1    Principal and Interest.  The entire outstanding principal balance of this Note, together with all accrued interest thereon (the “Repayment Amount”), shall be due and payable on the Maturity Date.  Subject to prepayment as set forth in Section 1.2, any and all accrued interest shall be due and payable only on the Maturity Date.
1.2    Prepayments.  This Note may be prepaid in whole or in part at any time prior to the Maturity Date.
1.3    Cancellation of Note.  Upon payment in full of the outstanding principal balance of this Note and accrued and unpaid interest thereon, this Note will be automatically cancelled and the Company’s payment obligations hereunder will be extinguished. 
ARTICLE 2:  TRANSFER RESTRICTIONS.
2.1    Transfer Restrictions.  The Holder shall not sell, assign, transfer, pledge or dispose of all or any part of this Note, by operation of law or otherwise, nor may the Holder pledge as collateral this Note, in any case without the written consent of the Company.
ARTICLE 3:  EVENTS OF DEFAULT.
The occurrence of any of the following events with respect to the Company shall constitute an event of default under this Note (an “Event of Default”).  The Company shall notify the Holder in writing within five (5) business days following the occurrence of any Event of Default.
3.1    The Company fails to make any payment of principal or interest as required hereunder.
3.2    Pursuant to or within the meaning of applicable law relating to insolvency or relief of debtors (a “Bankruptcy Law”), the Company (a) commences a voluntary case or proceeding, (b) consents to the entry of an order for relief against it in an involuntary case, (c) consents to the appointment of a trustee, receiver, assignee, liquidator or similar official, (d) makes an assignment for the benefit of its creditors, or (e) admits in writing its inability to pay its debts as they become due.
3.3    A court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (a) is for relief against the Company in an involuntary case, (b) appoints a trustee, receiver, assignee, liquidator or similar official for the Company’s properties, or (c) orders the liquidation of the Company, and in each case the order or decree is not dismissed within ninety (90) days.
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ARTICLE 4:  REMEDIES IN THE EVENT OF DEFAULT.
4.1    Upon the occurrence of an Event of Default, the Holder may, at its option, declare the aggregate amount of principal and interest outstanding under this Note immediately due and payable by providing written notice to the Company; provided, that such demand will be in addition to all other rights and remedies of the Holder under this Note and under applicable law.
4.2    The Company shall pay all reasonable costs and expenses incurred by or on behalf of the Holder in connection with the Holder’s exercise of any or all of its rights and remedies under this Note, including, without limitation, reasonable attorneys’ fees.
4.3    In the case of any Event of Default under this Note that is continuing and has not been waived in writing by the Holder, this Note will continue to bear interest at the interest rate otherwise in effect hereunder plus 2% per annum (but in any event not in excess of the maximum rate of interest permitted by applicable law).
ARTICLE 5:  MISCELLANEOUS.
5.1    Severability.  In the event that any provisions of this Note are determined to be invalid or unenforceable by a court of competent jurisdiction, the remainder of this Note shall remain in full force and effect without such provision.  Any provision of this Note held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.
5.2    Waivers and Amendments; Preservation of Remedies.  No waiver by the Holderof any right or remedy under this Note shall be effective unless in a writing signed by the Holder. Neither the failure nor any delay in exercising any right, power or privilege under this Note will operate as a waiver of such right, power or privilege and no single or partial exercise of any such right, power or privilege by the Holder will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege.  To the maximum extent permitted by applicable law, (a) no claim or right of the Holder arising out of this Note may be discharged by the Holder, in whole or in part, by a waiver or renunciation of the claim or right unless in writing, signed by the Holder; (b) no waiver that may be given by the Holder will be applicable except in the specific instance for which it is given; and (c) no notice to or demand on the Company will be deemed to be a waiver of any obligation of the Company or of the right of the Holder to take further action without notice or demand as provided in this Note.  The Company hereby waives presentment, demand, protest and notice of dishonor, protest, diligence, filing suit, nonpayment and all other notice.  The rights and remedies herein provided are cumulative and are not exclusive of any rights or remedies which any party may otherwise have at law or in equity.
5.3    Headings.  The captions to the several Articles and Sections hereof are not a part of this Note, but are included merely for convenience of reference only and shall not affect its meaning or interpretation.
5.4    Successors.  This Note shall be binding upon the Company and its successors and permitted assigns.
5.5    Governing Law.  This Note will be governed by the laws of the State of New York without regard to conflicts of laws principles.

[Signature page follows]

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IN WITNESS WHEREOF, the Company has caused its duly authorized representative to execute this Note on the date first above written.

ENERGY FOCUS, INC.

By:    /s/ Lesley A. Matt
Name: Lesley A. Matt
Title: Chief Executive Officer

[Signature Page to Promissory Note]
3ex_461773.htm

Exhibit 10.1

 

RESCISSION AGREEMENT

 

This RESCISSION AGREEMENT (“Agreement”) is entered into as of the 30th day of December 2022 (the “Execution Date”) by and between Jones Soda Co., a Washington corporation (the “Company”) and Mark Murray (the "Recipient"). The Company and Recipient, each is referred to as “Party” and collectively referred to as “Parties”. This Agreement is effective upon the Execution Date.

 

 

RECITALS

 

WHEREAS, the Company maintains the 2022 Omnibus Equity Incentive Plan (“Plan”) to reward employees, executive officers, directors, and consultants for their contributions and services to the Company.

 

WHEREAS, in connection with Recipient’s contributions and services, on May 27, 2022, the Company granted Recipient 1,800,000 Restricted Stock Units (“RSUs”) under the Plan (“RSU Award”) and such RSUs upon vesting are settled with shares of the Company’s common stock on a one-for-one basis in accordance to the vesting schedule described in Recipient’s Restricted Stock Unit Award Notice and Restricted Stock Unit Award Agreement (collectively, “Award Documents”).

 

WHEREAS, as of the Execution Date, 600,000 RSUs have previously vested and the Recipient received one share of the Company’s common stock in exchange for each vested RSU (“Vested Shares”).

 

WHEREAS, after careful consideration and discussion between the Parties, the Company and Recipient each wish to rescind and cancel the RSU Award (along with all Vested Shares) such that each Party is placed back in the same position it would have been if the RSU Award had not been granted.

 

NOW THEREFORE, in consideration of the foregoing premises, the Company and Recipient hereby irrevocably agree to all of the following:

 

Section 1: Rescission of RSU Award 

 

(a)    Rescission. The Parties agree that the Award Documents are hereby irrevocably rescinded and further agree that the award of RSUs has been rescinded and canceled without consideration. In connection with the foregoing rescission of RSUs, Recipient has contemporaneously surrendered and returned to Company all Vested Shares (if any) without consideration and any such Vested Shares are hereby cancelled without consideration and returned to the Plan. The Parties have no rights or obligations under the Award Documents and no RSUs or Vested Shares are outstanding.

 

Section 2: Taxes

 

 

(a) Responsibility. Recipient will be solely liable and responsible for the payment of Recipient's taxes, if any, arising as a result of this Agreement or any other related event including without limitation any unexpected or adverse tax consequences.

(b) Section 409A. This Agreement is intended to the maximum extent possible to be exempt from the requirements of Internal Revenue Code Section 409A but in any event shall be interpreted to be compliant with such Section 409A.

(c) Rescission. For U.S. federal, state, local and non-U.S. income tax purposes, the Parties intend that this Agreement be treated as a “rescission” of the transactions described in Section 1 and agree to take all positions with any taxing authority (including without limitation in the filing and defense of any tax returns) consistent with such treatment unless otherwise required by a “determination” within the meaning of Section 1313 of the Internal Revenue Code.

 

 

 

 

Section 3: Miscellaneous Provisions

 

(a) Severability. Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision or portion of 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 shall not affect any other provision or portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein.

(b) Governing Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Washington without regard to its conflicts of law principles.

(c) Entirety of Agreement. This Agreement constitutes the entire agreement between Recipient and the Company as it relates to its subject matter and supersedes all prior agreements, promises, understandings, covenants, arrangements, communications, representations and warranties, whether oral or written, by any person, officer, employee or representative of any Party hereto in respect of such subject matter. No provision of this Agreement may be amended, modified, or waived unless such amendment or modification is agreed to in writing and signed by Recipient and by a duly authorized officer of the Company (other than Recipient). No waiver by either Party hereto at any time of any breach by the other Party hereto of any condition or provision of this Agreement to be performed by such other Party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No consideration was provided to either Party by the other Party in connection with executing this Agreement.

(d) Headings. The section and paragraph headings in this Agreement are for convenience of reference only, and they form no part of this Agreement and shall not affect its interpretation.

(e) Notice. Notices, demands and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered either personally or by United States certified or registered mail, return receipt requested, postage prepaid, addressed to the last address that a Party has furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

(f) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. Signatures delivered via facsimile or in PDF format shall be deemed originals for all purposes.

(g) Interpretation. The Company and Recipient each acknowledge that each Party to this Agreement has been represented by counsel (or had the opportunity to consult with their own counsel) in connection with this Agreement and the transactions contemplated by this Agreement. Accordingly, any rule of law or any legal decision that would require interpretation of any claimed ambiguities in this Agreement against the drafting Party has no application and is expressly waived.

(h) Effect of Rescission. The Parties intend that the foregoing rescission of the RSU Award, which is being consummated in the same calendar year that the underlying applicable transaction first occurred shall mean that the Parties are intended to be placed back in the same position they were in as if the RSU Award never occurred.

(i) Exhibits. The Plan is attached as Exhibit A and the Award Documents are attached as Exhibit B.

 

 

 

 

IN WITNESS WHEREOF, Recipient and the Company (on behalf of itself and its affiliates) hereto have each executed this Agreement as of the Execution Date.

 

Recipient:                                                         Company:

 

 

 

 

 

 

_________________________________         _________________________________

Mark Murray                                                      By: Joe Culp

                                                      Title: Interim Chief Financial Officer                                                      

 

 

 

 

 

EXHIBIT A

 

2022 Omnibus Equity Incentive Plan

 

 

 

 

 

 

EXHIBIT B

 

Restricted Stock Unit Award Notice

 

Restricted Stock Unit Award Agreement

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