Document:

Form 10-K June 30, 2014 Exhibit 10.45

Exhibit 10.45

                 SERVICE LEVEL AGREEMENT   

                        WITH 

              IMPERIAL VALLEY MILLING CO. 

   

   

   

Document Owner: S&W Seed Company

Date: 9 April 2014

Version: 2014.1.1

   

_______________________________________________________________________________________________________

Seed Genetics International Pty Ltd ABN 44 061 114 814   

   Unit 5, 13-15 King William Road, Unley, South Australia 5061 

   Telephone +61 8 8271 6000

     Facsimile +61 8 8271 6077   

                                                 April 9, 2014     

                                                 Version: 2014.1.1     

Table of Contents

	
1	
 	
Agreement Overview	
 	
3
	
2	
 	
Goals & Objectives	
 	
3
	
3	
 	
Parties	
 	
3
	
4	
 	
Service Management	
 	
3
	
    4.1	
 	
    S&W responsibilities	
 	
3
	
    4.2	
 	
    The Service Provider Requirements	
 	
4
	
5	
 	
Service Requests	
 	
4
	
6	
 	
Service Expectations	
 	
4
	
7	
 	
Service Scope	
 	
4
	
8	
 	
Service Fees & Payment	
 	
5
	
9	
 	
Periodic Review	
 	
5
	
10	
 	
Observance of laws	
 	
5
	
11	
 	
Quality; Audit; Inspection	
 	
5
	
12	
 	
Insurance	
 	
5
	
13	
 	
Confidential Information	
 	
6
	
14	
 	
Notices	
 	
6
	
15	
 	
Governing Law: Dispute Resolution	
 	
6
	
 	
 	
 	
 	
 
	
16	
 	
Termination Notice	
 	
6
	
17	
 	
Other Provisions	
 	
6
	
 	
 	
 	
 	
 
	
18	
 	
Schedule 1 — Service Scope	
 	
8
	
19	
 	
Schedule 2 — Fees for 2013/2014	
 	
10
	
20	
 	
Schedule 3 — Addresses of Stakeholders	
 	
11
	
21	
 	
Schedule 4 — Examples of Operation of Fee Schedule	
 	
11

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1     Agreement Overview

This Agreement represents a Service Level Agreement ("SLA" or "Agreement") between Imperial Valley Milling Co. (the
"Service Provider") and S&W Seed Company ("S&W") for the provision of Services (as defined in Section 7 below) by Service Provider to S&W required for
the safe storage, preparation, packing and dispatching of goods (cleaned and uncleaned seed) delivered to the Service Provider premises either by S&W (e.g., from Australia or Five Points)
or by S&W contracted growers or suppliers (e.g., growers that S&W directly contracts with in the Imperial Valley) (all such goods referred to herein as "Group Stock").  For
clarity, Group Stock excludes all seed sourced by Service Provider that is made available to S&W under the Supply Agreement (as defined below).

Service Provider and S&W are currently parties to a Supply Agreement dated October 12, 2012 (the "Supply Agreement") relating to Service Provider's supply of alfalfa and
other seed to S&W.  The Supply Agreement remains in full force and effect and is not modified by this Agreement.

This Agreement outlines the parameters of the Services to be provided by Service Provider in respect of Group Stock as mutually understood by the parties. 

The parties will facilitate and participate in good faith in regular communication in order to assist and address matters within the scope of this Agreement that may impact on each other.

2     Goals & Objectives

The purpose of this Agreement is to ensure that the proper elements and commitments are in place for Service Provider to provide consistent sustainable
Services and delivery to S&W.

The goal of this Agreement is to set forth the mutual understanding for service provision between the Service Provider and S&W.

The objectives of this Agreement are to:

1.   Provide clear reference to service, accountability, roles and/or responsibilities.

2.   Define fees and charges for Services. 

3.   Present a clear, concise and measurable description of Service provision by Service Provider to S&W.

4.   Match perceptions of expected service Provision with actual service support and delivery.

3     Parties

The Service Provider and S&W are the parties to this Agreement.

4     Service Management

4.1     S&W's responsibilities consist of the following:

1.   Provide clear instructions to the Service Provider in reference to Group Stock to advance the cleaning of uncleaned seed lots.

   2.   Arrange for clear instructions of Services required to prepare goods for local and export orders

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3.   Provide adequate notification of Services required for the packing and dispatching of goods for local and export orders.

   4.   Organize the availability of S&W representative(s) to resolve a service related event or request. 

   5.   Timely payment of invoices for Services as per standard terms: 15th day following the end of the month in which the Services were provided.

4.2     The Service Provider Requirements

Service Provider responsibilities and/or requirements in support of this Agreement include: 

1.   Appropriate and timely notification of Group Stock delivered, reporting on cleaning, packing and dispatching of goods

   2.   Obtaining and maintaining the appropriate accreditation and authorisation of employees and premises for packing and sampling goods eligible for certification and export.

   3.   Meeting response times associated with service related incidents and instructions.

   4.   Telephone, electronic mail (e-mail) or facsimile support during office hours (7:30 A.M. to 4:30 P.M. (Pacific Time) Monday - Friday).

   5.   To negotiate annually with S&W an itemised list of fees and charges related to Services and activities.

   6.   To facilitate and support quarterly physical counts of S&W products warehoused by the Service Provider and an annual audited stocktake.

5     Service Requests

In support of Services provided under this Agreement, the Service Provider will respond to service related incidents and/or requests submitted by S&W within the following time frames:

	0-8 hours (during business hours) for issues classified as URGENT*

	Within 48 hours for issues classified as ASAP*

	Within 5 working days for issues classified as MEDIUM* or LOW*

*These time frames are based on priorities relating to S&W BLEND ORDER & S&W SALES ORDER WORKSHEET forms.

6     Service Expectations

Assumptions related to the provision of Services include:

	Changes to Services will be communicated and documented to both parties.

	The Service Provider may engage subcontractors to assist in performance of the Service only with the prior agreement of S&W (which will not be unreasonably withheld).   Service
Provider will be responsible for the performance of all subcontractors in accordance with the terms and conditions of this Agreement

7     Service Scope

The "Services" consist of those services identified on Schedule 1, as the same may be amended from time to time by agreement of the parties.

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8     Service Fees & Payment

Fees and charges should be either listed in pounds (lbs) & kilograms (kg) or price per item and are subject to mutual agreement of the parties. 

S&W will pay Service Provider for the Services the fees and charges as detailed Schedule 1 and under the payment terms stated in Section 4.1.5.

All quoted fees and charges shall be commercial-in-confidence between Service Provider and S&W.

9     Periodic Review

This Agreement is valid from the Effective Date outlined herein and is valid until terminated in accordance with Section 16. 

This Agreement should be reviewed by the parties at a minimum once per fiscal year.  S&W is responsible for facilitating regular reviews of this Agreement. This Agreement may be
amended only upon mutual written agreement of both parties. 

10     Observance of laws

Both parties shall comply with the United States of America (USA), California State, United States Department of
Agriculture (USDA), The California Crop Improvement Association (CCIA), International Seed Testing Association (ISTA) seed sampling and other certification and other applicable
authorities' laws, regulations and procedures. 

11     Quality; Audit; Inspection

	Service Provider will satisfy and comply diligently with all written quality assurance requirements of S&W.  

	S&W  will have the right to inspect without advance notice all of Service Provider's facilities and equipment relating to cleaning, storage and delivery of Group
Stock or other provision of Services. Neither S&W nor its employees or agents will be required by Service Provider to execute a confidentiality agreement, waiver or other agreement as a
condition to engaging in inspections related to such seed.

	During the term of this Agreement and for a period of two years after termination, Service Provider's correspondence, records and books of account related to the
supply of Services to S&W, will be open to inspection and audit by S&W during Service Provider's normal business hours.

12     Insurance

The Service Provider shall ensure an adequate level of insurance for any goods warehoused on its own business premises
or on subcontracted premises.

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13     
Confidential Information

The Service Provider and its employees will learn, work with, and be entrusted with information that is confidential to  S&W's operations, products and
designs. All such information shall be treated "commercial-in-confidence" and not disclosed to any person or entity in any way.

Examples include customers, suppliers, delivery of goods, brands, composites and any information that is marked "confidential" or "proprietary". Keeping this information
confidential is essential to ensure S&W's success. Because this information has substantial value, the Service Provider and its employees shall exercise the highest degree of care not to
disclose nor use to their or others' gain any confidential information, even inadvertently through conversations, to any persons or entities in or outside the business.

Service Provider acknowledges that damages alone may not adequately compensate S&W for violation by Service Provider of this Section 13. Accordingly, in addition to all other
remedies that may be available hereunder or under applicable law, S&W shall have the right to any equitable relief that may be appropriate to remedy a breach or threatened breach by
Service Provider hereunder, including the right to enforce specifically the terms of this Section 13 by obtaining injunctive relief in respect of any violation or non-performance hereof.

14     Notices

Except as otherwise provided in this Agreement, all notices and other communications hereunder shall be in writing and shall be deemed given if delivered by
hand sent via a reputable nationwide courier service or mailed by registered or certified mail (return receipt requested) to a party at the address of such party set forth in the signature pages to this
Agreement (or at such other address for a party as shall be specified by like notice) and shall be deemed given on the date on which so hand-delivered or on the third business day following the
date on which so mailed or sent.  

15     Governing Law: Dispute resolution

	This Agreement will be deemed to be made in and in all respects will be interpreted, construed and governed by and in accordance with the law of the State of
California without regard to any applicable principles of conflicts of law.

	The parties shall seek to settle any dispute arising in connection with this Agreement by negotiation, mediation and conciliation between the parties. In any such proceeding, each party may at
its election, be represented or accompanied by an advocate or duly qualified legal practitioner.

	For the avoidance or settlement of disputes, and for the better management of this Agreement, the parties' representatives shall be the individuals nominated in Schedule 3.

	If any dispute is not resolved by the parties in the manner contemplated by Section 15B within 30 days after initial notice of the dispute by a party, then the dispute wiil be resolved in the
manner contemplated by Section 5(g) of the Supply Agreement. 

16     Termination notice

This Agreement may be terminated at any time by either party upon giving 60 days' written notice of the termination to the other.

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17     Other Provisions

	 This Agreement (i) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with
respect to the subject matter hereof (other than the Supply Agreement or any confidentiality agreement between the parties, which remain in full force and effect and are not modfied) and (ii) shall
not be assigned by operation of law or otherwise; provided, that S&W may assign its rights and obligations hereunder to any subsidiary of S&W. This Agreement shall inure to the benefit
of and be binding upon the parties hereto and their respective successors and permitted assigns.  This Agreement may not be amended except by an instrument in writing signed on behalf of both
of the parties hereto.

	  Service Provider acknowledges that it is an independent contractor and is not an agent, partner, joint venturer nor employee of S&W.   Service provider shall have no authority to bind or
otherwise obligate S&W in any manner nor shall Service Provider represent to anyone that it has a right to do so.

	
Imperial Valley Milling Co.

	
 
	
S&W Seed Company

   

	
Glen Bornt

	
 
	
Dennis Jury

	
Name

	
 
	
Name

	
/s/ Glen Bornt

	
 
	
/s/ Dennis Jury

	
Authorised Signature

	
 
	
Authorised Signature

   

	
Date: May 9, 2014                        

	
 
	
Date: May 13, 2014                        

   

	
Address:

	
 
	
Address:

   

	
PO Box 387

Holtville, CA  

USA 92250

	
 
	
5 Lochness Ave

Torrens Park

SA 5062

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18     Schedule 1 - Service Scope

 

1.  Recording and reporting of deliveries to the Service Provider premises by S&W contracted growers or suppliers (Group stock) within five (5) working days
(in an agreed format).

2.  Notification of any matters relating to goods delivered (Group stock) that may cause quality issues ahead of cleaning process (such as weed seeds of significance,
animal faeces or presence of excessive moisture or dirt.) within one (1) working day.

3.  Recording and reporting of cleaned S&W products by seed lot for each delivery or lot within five (5) working days in an agreed format.

4.  Monthly reporting on S&W owned (title) products warehoused by the Service Provider in an agreed format.

5.  Processing of unclean seed lots within the indicated and defined timeframe as requested by S&W.

6.  Reporting of seed lines or lots dispatched for export containerised goods within one (1) working day by means of the Inland B/L.

7.  Re-handling and processing of goods 

7.1.  Taking seed from Group stock stored in bulk and bagging it off into new 20, 22.7, 25, 1,000 or 2,000 (LBS or KG) bags or as otherwise instructed by S&W.

7.2.  Taking cleaned seed stored in bulk, scarifying and bagging it off into new 20, 22.7, 25, 1,000 or 2,000 KG bags or as otherwise instructed by S&W.

7.3.  Re-bagging 20, 22.7, 25, 1,000,  2,000 or other clean seed into new or existing bags

7.4.  Scarifying and re-bagging of 20, 22.7, 25, 1,000, 2,000 or other KG clean seed into new or existing bags 

7.5.  Blending and mixing clean seed from bulk or bags into new 20, 22.7, 25, 1,000, 2,000 or other KG bags 

7.6.  Blending and mixing clean seed from bulk or in bags and treating with Thiram (or other chemical as instructed / agreed between the parties) & Red dye into new
20 or 25 or other KG bags

7.7.  Other requirements as discussed and agreed to. 

8.  Supply and sewing into bags

8.1.  Certification labels

8.2.  Uncert tags  

9.  Fee to apply custom-made labels or adhesive tags provided by S&W to bags 

10.  Provision and supply of 

A.  bags

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B.  Certified heat treated export pallets

C.  Shrink/stretch-wrapping of bagged seed on export pallets

D.  Acquiring and submitting of samples to nominated laboratories (for certification, OIC, BIC or other seed test analyses).

11.  Loading of bagged seed on export pallets in 20ft or 40ft containers including arranging and preparation of goods for Phytosanitary Inspection by USDA.

12.  Loading of 1,000 or 2,000KG bagged seed for dispatch 

13.  Other activities as mutually discussed / agreed / priced.

   

   

   

   

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19     Schedule 2 - Fees for 2014

	
IMPERIAL VALLY MILLING CO.

	
Period 01 March 2014 - 28  Feb 2015

	
DESCRIPTION
	
Fee / LBS (USD)
	
Fee / per unit
	
Fee / Kg (USD)

	
IVM Storage & Handling Fee (In/Out) for S&W Group stock
	
 $                      0.02 
	
 
	
 $                    0.04 

	
IVM Packing fee for  S&W Group stock raw seed
	
 $                      0.03 
	
 
	
 $                    0.07 

	
IVM fee for Packing Group Stock treated seed 

Thiram & Colorant (@ 6oz/100lbs / 1ltr /MT)
	
 $                      0.08 
	
 
	
 $                    0.18 

	
	
	
	

	
	
	
	

	
Re-Packing Seed

(Raw, Treated or Coated Seed)
	
 $                      0.03 
	
 
	
 $                    0.07 

	
Blending of Raw, Treated or Coated Seed
	
 $                      0.03 
	
 
	
 $                    0.07 

	
IVM Custom labels, Cert tags (AOSCA & OECD) service fee per order.

(No charge if SW group supply & pay for tags)
	
 
	
$100
	
 plus actual cost 

	
IVM uncertified In-House label fee
	
No Charge

	
County drawn official sample (per sample)
	
 
	
 $                  50.00 
	
 

	
IVM In-House Germ & Noxious weed count (per sample)
	
 
	
 $                  50.00 
	
 

	
IVM In-House GMO Test (per sample)
	
 
	
 $                  50.00 
	
 

	
IVM Phytosanitary Certificate service fee
	
 
	
 $                100.00 
	
 

	
IVM Request & Administration service fee for Certified Blend (per lot)
	
 
	
 $                200.00 
	
 

	
IVM Bag Fee per 25KG Poly Bag
	
 
	
 $                    0.50 
	
 

	
IVM Bag Fee per  Paper Sudan 
	
 
	
 $                    0.55 
	
 

	
IVM fee per White Paper bag
	
 
	
 $                    0.50 
	
 

	
Palletizing bagged seed to containerize and or prepare for despatch
	
 
	
 $                  20.00 
	
 

	
IVM Magnetic Rollers fee
	
 $                      0.10 
	
 
	
 $                    0.22 

	
Fee for Re-cleaning of Alfalfa seed
	
 $                      0.06 
	
 
	
 $                    0.13 

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20     Schedule 3 - Addresses of Stakeholders

	
Address of S&W SEED Company.

	
Physical address
	
Five Points, CA 93624, United States

	
Postal address
	
P.O. Box 235, Five Points, CA 93624 United States

	
Phone number
	
(559) 884 2535

	
Fax number
	
(559) 884 2750

	
S&W Seed Co key personnel

	
Position 
	
Name 
	
e-mail address

	
Chief Executive Officer (CEO)
	
Mark S. Grewal
	
mgrewal@swseedco.com 

	
Chief Operation Officer (COO) 
	
Dennis Jury
	
djury@sgiseeds.com 

	
Chief Financial Officer (CFO)
	
Matt Szot
	
mszot@swseedco.com 

	
Vice President of Sales & Marketing
	
Fred Fabre
	
ffabre@swseedco.com

	
Vice President of Processing
	
Dan Karsten
	
dkarsten@swseedco.com 

	
Global Corporate Controller
	
Nasrim Fletcher
	
nfletcher@swseedco.com 

	
International Logistics Manager
	
Desiree Schroeder
	
dschroeder@swseedco.com 

	
Address of Service Provider

	
Physical address
	
250 E. 5th Street, Holtville, CA 92250

	
Postal address
	
PO Box 387, Holtville, CA 92250

	
Phone number
	
(760)356-2914 

	
Fax number
	
(760)356-2916

	
Service Provider Key Personnel

	
Position
	
Name
	
e-mail address

	
President
	
Glen Bornt
	
glenbornt@ivmilling.com 

	
Inventory control & 

Export coordinator
	
Jagget Flores 
	
ivmjagget@sbcglobal.net 

	
Office Manager
	
Benito 
	
benito@ivmilling.com 

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21     Schedule 4 - Examples of Operation of Fee Schedule

1) Straight bagging of IVM supplied certified Cuf 101 or VNS seed into plain bags and preparing for dispatch / loading into container: $0.10/lb

   2) Blending lines of seed within certified Cuf 101 or VNS seed lines supplied by IVM to achieve target quality parameters ("standard blending") and packing into plain bags and preparing for
dispatch / loading into container: $0.10/lb

   3) Receiving into store S&W Group Stock that has been transported in from another location: $0.02/lb

   4) Packing S&W Group Stock into seed into bags: $0.03/lb (plus relevant bag fee if bags not supplied by S&W)

   5) Blending and packing Group Stock into bags: $0.06/lb (plus relevant bag fee if bags not supplied by S&W)

   6) Treating any seed regardless of origin or source: $0.05/lb

   7) Blending of IVM sourced and Group Stock seed according to formula prescribed by S&W ("custom blending") $0.03/lb across the full quantity

As a working example for a 88,000 lb (ie 2 FCL's) 50:50 blend of Certified Cuf 101 and SuperSonic as a certified blend that has been arranged with CCIA by S&W, packed into buyers
bags supplied by S&W, sealed with tags supplied by S&W, loaded on to pallets shrink wrapped and loaded into a container the following would apply:

   a) supply of Cuf 101: 44,000 lbs x $0.10/lb = $4,400

   b) receival of SuperSonic into store and storage: 44,000 lbs x $0.02/lb = $880

   c) blending of seed: 88,000lbs x $0.03/lb = $2,640

   d) packing seed into bags: 44,000lbs x 0.03 = $1,320

   e) palletising bagged seed and loading into container: 20 pallets (ie half of the total) x $20/unit = $400

   f) Phyto fee $100

Coated Seed: coating charge of $0.30/lb is based on the outward weight of coated seed and this depends on the build-up factor or coating ratio.  For example a 33% coat means that
33% of the final weight of the seed is coating material and there has been a gain in weight eq.  In the above example therefore the 88,000 lb blended line would gain 44,000 lbs to a total
weight of 132,000 lbs.  This would incur a charge of 132,000 lbs x $0.30/lb = $39,600.  Otherwise all other costs would remain as already indicated.

                                                 Page 12 of 12NON-QUALIFIED STOCK OPTION AGREEMENT

EXHIBIT 10.34

NON-QUALIFIED STOCK OPTION AGREEMENT

THIS NON-QUALIFIED STOCK OPTION AGREEMENT (the “Agreement”) entered into as of July 1, 2014 (the “Grant Date”) between GelTech Solutions, Inc. (the “Company”) and __________ (the “Optionee”). 

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

WHEREAS, pursuant to the Plan, it has been determined that in order to enhance the ability of the Company to attract and retain qualified employees, consultants and directors, the Company has granted the Optionee the right to purchase the common stock of the Company pursuant to stock options.

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

1.

Grant of Non-Qualified Options.  The Company irrevocably granted to the Optionee, as a matter of separate agreement and not in lieu of salary or other compensation for services, the right and option to purchase all or any part of _________ shares of authorized but unissued or treasury common stock of the Company (the “Options”) on the terms and conditions herein set forth.  The Options are not intended to be Incentive Stock Options as defined by Section 422 of the Internal Revenue Code of 1986 (the “Code”).  Of the Options: (i) ________ were granted for service as a director and (ii) _______ were granted for service as a committee member.  The Optionee acknowledges receipt of a copy of the Plan, as amended.

2.

Price.  The exercise price of the Options is $0.73 per share. 

3.

Vesting - When Exercisable.  

(a)

The Options shall vest on June 30, 2015, subject to the Optionee’s continued service with the Company in the capacity for which the Options were granted on the applicable vesting date.  Any fractional vesting shall be rounded up to the extent necessary.  Notwithstanding any other provision in this Agreement, the Options shall vest immediately on the occurrence of a Change of Control as defined under the Plan (a “Triggering Event”); provided, however, that there shall be no immediate vesting under romanette (ii) of the definition of Change of Control if the directors serving just prior to the Triggering Event remain the majority of the Board after the Triggering Event. Additionally, all Options shall vest immediately (subject to the preceding sentence) on the date the Company publicly announces, by press release, by disclosure in a filing with the Securities and Exchange Commission or otherwise (the “Public Announcement”), its intention to sell substantially all of the Company’s assets or to enter into a merger or 

consolidation as described in clauses (i) and (ii) under the definition of Change of Control in the Plan.  If the Optionee exercises the Options within 10 calendar days from the date of the Public Announcement, the Optionee shall be deemed a record holder of the shares underlying the Options as of the record date of the Change of Control. 

(b)

Subject to Sections 3(c) and 4 of this Agreement, the vested Options may be exercised until 6:00 p.m. New York time for 10 years from the Grant Date (the “Expiration Date”).

(c)

Notwithstanding any other provision of this Agreement, at the discretion of the Board, all Options, whether vested or unvested, shall be immediately forfeited and no longer exercisable if any of the following events occur:

(1)

The Optionee purchases or sells securities of the Company in violation of the Company’s insider trading guidelines then in effect;

(2)

The Optionee breaches any duty of confidentiality including that required by the Company’s insider trading guidelines then in effect;

(3)

The Optionee competes with the Company; or

(4)

The Optionee recruits Company personnel for another entity or business within 24 months following termination of services.

4.

Termination of Relationship.

(a)

If for any reason, except death or disability as provided below, the Optionee ceases to perform services in the capacity for which the Options were granted, all vested Options as of the date of the termination of services may be exercised by the Optionee at any time within three months following termination of services.

(b)

If the Optionee’s services in the capacity for which the Options were granted are terminated as a result of his death, the Optionee’s estate or any Transferee, as defined herein, shall have the right to exercise the Optionee’s vested Options within the time provided in the Plan subject to Section 3(c).  For the purpose of this Agreement, “Transferee” shall mean a person to whom such shares are transferred by will or by the laws of descent and distribution.

(c)

If the Optionee is unable to perform services in the capacity for which the Options were granted as a result of becoming disabled, within the meaning of Section 22(e)(3) of the Code, the Optionee shall have the right to exercise the Optionee’s vested options within the time provided in the Plan.

(d)

Notwithstanding anything contained in this Section 4, the Options may not be exercised after the Expiration Date.

(e)

Any of the Options that were not vested immediately prior to ceasing to perform the services for which the Options were granted shall terminate at that time.  

For purposes of this Section 4 “Company” shall include subsidiaries and/or affiliates of the Company.

5.

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

6.

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

(a)  

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

(b)  

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

(c)  

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

(d) 

be accompanied by full payment of the exercise price by tender to the Company of an amount equal to the exercise price multiplied by the number of underlying shares being purchased either in cash, by wire transfer, or by certified check or bank cashier’s check, payable to the order of the Company; and  

(e)

be accompanied by payment of any amount that the Company, in its sole discretion, deems necessary to comply with any federal, state or local withholding requirements for income and employment tax purposes.  If the Optionee fails to make such payment in a timely manner, the Company may: (i) decline to permit exercise of the Options or (ii) withhold and set-off against compensation and any other amounts payable to the Optionee the amount of 

such required payment. Such withholding may be in the shares underlying the Options at the sole discretion of the Company.

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

7.

Sale of Shares Acquired Upon Exercise of Options.  If the Optionee is an officer (as defined by Section 16(b) of the Securities Exchange Act of 1934 (“Section 16(b)”)) or a director of the Company, any shares of the Company’s common stock acquired pursuant to the Options cannot be sold by the Optionee until at least six months elapse from the Grant Date except in case of death or disability or if the grant was exempt from the short-swing profit provisions of Section 16(b). 

8.

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

9.  

Necessity to Become Holder of Record.  Neither the Optionee, the Optionee’s estate, nor any Transferee shall have any rights as a shareholder with respect to any of the shares underlying the Options until such person shall have become the holder of record of such shares.  No cash dividends or cash distributions, ordinary or extraordinary, shall be provided to the holder if the record date is prior to the date on which such person became the holder of record thereof.

10.  

Reservation of Right to Terminate Relationship.  Nothing contained in this Agreement shall restrict the right of the Company to terminate the relationship of the Optionee at any time, with or without cause.  The termination of the relationship of the Optionee by the Company, regardless of the reason therefor, shall have the results provided for in Sections 3 and 4 of this Agreement.  

11.  

Conditions to Exercise of Options.  If a Registration Statement on Form S-8 (or any other successor form) is not effective as to the shares of common stock issuable upon exercise of the Options, the remainder of this Section 11 is applicable as to federal law.  In order to enable the Company to comply with the Securities Act of 1933 (the “Securities Act”) and relevant state law, the Company may require the Optionee, the Optionee’s estate, or any Transferee as a condition of the exercising of the Options granted hereunder, to give written assurance satisfactory to the Company that the shares underlying the Options are being acquired for such persons own account, for investment only, with no view to the distribution of same, and that any subsequent resale of any such shares either shall be made pursuant to a registration statement under the Securities Act and applicable state law which has become effective and is current with regard to the shares being sold, or shall be pursuant to an exemption from registration under the Securities Act and applicable state law.

The Options are subject to the requirement that, if at any time the Board shall determine, in its discretion, that the listing, registration, or qualification of the shares of common stock underlying the Options upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection with 

the issue or purchase of the shares underlying the Options, the Options may not be exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected.  

12.  

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

13.  

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

(a)  

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

(b)  

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

(c)  

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

14.

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

15.

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

16.

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

17.

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

18.

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

The Optionee:

To the Optionee at the address on the signature page 

of this Agreement

The Company:

GelTech Solutions, Inc.

1460 Park Lane South, Suite 1

Jupiter, FL 33458

 

Attention: Michael Hull

Facsimile: (561) 427-6182

with a copy to:

Michael D. Harris, Esq.

Nason, Yeager, Gerson, White & Lioce P.A.

1645 Palm Beach Lakes Blvd., Suite 1200

West Palm Beach, FL 33401

Facsimile:  (561) 471-0894

or to such other address as either of them, by notice to the other may designate from time to time.  

19.

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

20.

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

21.

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

22.

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

23.

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

24.

Stop-Transfer Orders.  

(a)

The Optionee agrees that, in order to ensure compliance with the restrictions set forth in the Plan and this Agreement, the Company may issue appropriate “stop transfer” instructions to its duly authorized transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

(b)

The Company shall not be required (i) to transfer on its books any shares of the Company’s common stock that have been sold or otherwise transferred in violation of any of the provisions of the Plan or the Agreement or (ii) to treat the owner of such shares of common stock or to accord the right to vote or pay dividends to any purchaser or other Transferee to whom such shares of common stock shall have been so transferred.

[Signature Page to Follow]

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

			
	 
	GELTECH SOLUTIONS, INC.

	 
	 
	 

	 
	 
	 

	 
	By: 

	 

	 
	 
	Michael Hull

	 
	 
	Chief Financial Officer

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	OPTIONEE:

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	Address of the Optionee:

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