Document:

Form of Subscription Agreement between the Registrants and the bridge investors

 Exhibit 4.6 
  

DayStar Technologies, Inc. 
  
 

 
  
 Subscription Agreement

  
 August 6, 2003 
  
 John R. Tuttle, Ph.D., President 
 DayStar Technologies, Inc. 
 900 Golden Gate
Terrace, Suite A 
 Grass Valley, CA 95945 
 1.530.271.5557 • 1.530.271.5558 fax 
 info@daystartech.com • http://www.daystartech.com 

 SUBSCRIPTION AGREEMENT 
  
             , 2003 
  
 DayStar Technologies, Inc. 
 900 Golden Gate Terrace, Suite A 
 Grass Valley, CA 95945 
  
 Dear Sirs: 
  
              (“Subscriber”) hereby subscribes for the purchase of that number
of Units (as defined below) equal to (i) $300,000 divided by the quantity of (ii)(A) 60% multiplied by (B) the “price to the public” specified for such Units in the final prospectus for such public offering of Units of DayStar
Technologies, Inc., a Delaware corporation (the “Company”). By way of example, if the price to the public for the Units is $10.00 per Unit, Subscriber would be purchasing hereunder 50,000 Units ($300,000 divided by 60% of $10). Subscriber
is aware that the Company is in the initial stages of conducting an initial public offering of units, with such units expected to consist of common stock of the Company and warrant to purchase common stock of the Company on such terms and conditions
as agreed upon between the Company and the managing underwriter. The term “Units” shall mean that security to be sold the managing underwriter of the Company’s initial public offering, or pursuant to the provisions of Section 7(a)
below, common stock of the Company, as the case may be. 
  
 Subscriber acknowledges and agrees that he understands that the initial public offering may not be concluded and that the terms of the Units have not been determined as of the date hereof. There is no assurance that the Company will able to
timely raise any amount of money or secure the financing necessary to continue the Company’s operations. In particular, an initial public offering is partially dependent on factors outside the Company’s control, including market
conditions. 
  
 Subscriber is delivering the full amount of the
total purchase price for the above-stated number of Units, in cash or by cashiers or certified check, or by wire transfer, as full payment for all such Units. 
  

In addition, the Company and Subscriber agree as follows: 
  
 1. This Subscription Agreement is irrevocable and may not be withdrawn. 
  
 2. This Subscription Agreement is not effective until accepted by the Company. Upon acceptance by the Company, this
Subscription Agreement shall constitute a legal and binding obligation on both Subscriber’s part and the part of the Company. 
  
 3. The purchase and sale of the Units will take place at the closing (the “Closing”) at such place as the parties shall mutually agree. Upon
payment in full of such purchase price, and upon completion of the Company’s initial public offering, the Company shall issue appropriate certificates and warrants for the purchased Units and shall record the ownership on the books of the
Company or with the Company’s transfer agent. 
  
 4. In
connection with the Company’s initial public offering (the “IPO”), the Company shall use reasonable efforts to cause its managing underwriter or underwriters to register the Units purchased by Subscriber hereunder in the
Company’s initial public offering. Subscriber acknowledges that specific terms of such registration, if at all, will be subject to negotiation with the managing underwriters, including the possibility of restrictions on timing of sales by the
Subscriber by way of lock-up agreements and the like, and that such registration may not occur if in the judgment of the Company’s managing underwriter or underwriters it would not be compatible with the success of the IPO. 
  

 SUBSCRIPTION AGREEMENT 
 DAYSTAR TECHNOLOGIES, INC. 
 August 6, 2003, PAGE 1 

 5. Subscriber represents, warrants and covenants to the Company as follows: 
  
 a. Subscriber hereby acknowledges receipt of a copy of the
DayStar Technologies, Inc. Business Plan or Business Plan Summary. Subscriber understands that the Units have not been registered under the Securities Act of 1933 or any state securities laws (the “Acts”) in reliance upon exemptions
available for non-public or limited offerings. Consequently, none of these documents has not been subject to review and comment by the staff of the Securities and Exchange Commission or any state securities regulatory agency. 
  
 b. Subscriber has carefully read the DayStar Technologies
Business Plan or Business Plan Summary and fully understands all matters set forth therein and in this Subscription Agreement. 
  
 c. Subscriber had and continues to have an opportunity (i) to question, and to receive information from, the Officers of the Company
concerning this offering and concerning the Company and (ii) to obtain any and all additional information necessary to verify the accuracy of the information contained in the documents received in connection with this offering (any amendments,
supplements, or appendices thereto), or any other supplemental information which the Subscriber deems relevant to making an informed investment decision as to participation in the offering, provided that the Company possesses such information or can
acquire it without unreasonable effort or expense. 
  
 d. Subscriber has sufficient knowledge and experience in business and financial matters in general and is capable of evaluating the risks involved in purchasing the Units. 
  
 e. Subscriber is capable of bearing all the economic risks involved in the investment in the Units.
Subscriber has adequate means of providing for Subscriber’s current needs and possible personal contingencies, and no need for liquidity of the investment in the Units, and can afford a complete loss of the investment in the Units. Subscriber
has no reason to anticipate any change in personal circumstances, financial or otherwise, which may cause or require any sale or transfer by Subscriber of all or part of the Units being purchased by Subscriber. 
  
 f. Subscriber understands that Subscriber must be an
accredited investor in order to purchase the Units. Attached is a list of criteria for determining whether Subscriber is an “accredited investor” as defined in Regulation D under the Securities Act of 1933. Subscriber has reviewed these
criteria and represents and warrants to the Company that Subscriber is an accredited investor meeting one or more of the criteria set forth in the attached definition. 
  
 g. Subscriber is purchasing the Units for Subscriber’s own account, for investment and with no view to
the resale or distribution thereof. 
  
 h.
Subscriber understands that Subscriber must bear the economic risk of the investment in the Units for an indefinite period because the Units have not been registered under the Acts and, therefore, is subject to restrictions upon transfer such that
it may not be sold or otherwise transferred unless it is registered under the Acts or an exemption from such registration is available. Subscriber understands that, except as provided in Section 4 above, the Company is not under any obligation, and
has no present intention, to file a registration statement under the Acts or to comply with any exemptions under the Acts for purposes of any resale. Subscriber shall not assign, sell or make any other disposition of any Units in the absence of an
effective registration statement, qualification or other authorization relating thereto under the Acts, or an opinion of qualification or other authorization relating thereto under the Acts, or an opinion of qualified counsel satisfactory to the
Company to the effect that the proposed assignment, sale or other disposition of the Units will neither constitute nor result in any violation of the Acts. Subscriber also understands that any transfer or other disposition of the Units is subject to
restrictions set forth in the By-Laws of the Company. Any certificates or other documents, which may be issued representing the Units, may be endorsed with a legend concerning these, transfer restrictions. 
  

 SUBSCRIPTION AGREEMENT 
 DAYSTAR TECHNOLOGIES, INC. 
 August 6, 2003, PAGE 2 

 i. Subscriber hereby agrees to indemnify and hold harmless the Company from and against
any and all loss, damage, liability or expense (including without limitation attorneys’ fees) due to or arising out of any breach of this Subscription Agreement or the inaccuracy on any representation or warranty made by Subscriber in this
Subscription Agreement. 
  
 j. The
representations, warranties and covenants herein contained are made and given by Subscriber to induce the Company to sell and issue the Units to Subscriber, and each representation, warranty and covenant constitutes a material portion of the
consideration therefore. 
  
 k. Subscriber has
full power and authority to execute, deliver and perform this Agreement and to acquire the Units. This Agreement constitutes the valid and legally binding obligation of Subscriber, enforceable against Subscriber in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization and moratorium laws and other laws of general application affecting enforcement of creditors’ rights generally. 
  
 l. Subscriber understands that the Units have not been registered under the Acts on the ground that the sale provided for in
this Agreement and the issuance of securities hereunder is exempt from registration under the Acts pursuant to Section 4(2) thereof, and that the Company’s reliance on such exemption is predicated on the Subscriber’s representations set
forth herein. Subscriber realizes that the basis for the exemption may not be present if, notwithstanding such representations, the Subscriber has in mind merely acquiring shares of the Units for a fixed or determinable period in the future, or for
a market rise, or for sale if the market does not rise. Subscriber has no such intention. 
  
 6. Rights and duties under this Subscription Agreement may not be assigned or delegated. This Subscription Agreement may only be modified with the written consent of the Company. It shall be governed by and
interpreted in accordance with the laws of the State of Delaware. 
  
 7. In the event the IPO is not concluded by March 31, 2004, Subscriber may elect to convert this subscription into (a) that number of shares of common stock of the Company equal to (i) $300,000 divided by (ii) the then fair market value of
common stock of the Company as determined by the Company’s Board of Directors in good faith; or (b) a promissory note from the Company to Subscriber in the amount of $300,000 due two years from the date of election of the Subscriber under this
Section 7 with a simple interest rate of 10%. Subscriber shall make the election under this Section 7 by delivering a written election to the Company at its headquarters in Grass Valley, CA, within 10 days of Subscriber’s receipt of notice,
oral or written, from the Company that the IPO will not be concluded. In the absence of the Company’s receipt of notice from Subscriber within the required timeframe, the subscription shall automatically convert into a promissory note pursuant
to Section 7(b) which treatment shall be binding on Subscriber and the Company. 
  
 8. Each of the parties hereto shall execute and deliver any and all additional papers, documents and other assurances, and shall do any and all acts and things reasonably necessary in connection with the performance
of their obligations hereunder and to carry out the intent of the parties hereto. 
  
 9. All notices, requests, consents and demands shall be in writing and shall be personally delivered (effective upon receipt), mailed, postage prepaid (effective three business days after dispatch), telecopied or
telegraphed (effective upon receipt of the telecopy in complete, readable form), or sent via a reputable overnight courier service (effective the following business day), to the Company at: 
  
 DayStar Technologies, Inc. 
 900 Golden Gate Terrace, Suite A 
 Grass Valley, CA 95945 
 Attn. John Tuttle, Ph.D. 
 Fax: (530) 271-5558 
  

 SUBSCRIPTION AGREEMENT 
 DAYSTAR TECHNOLOGIES, INC. 
 August 6, 2003, PAGE 3 

 with a copy to: 
  
 Tonkon Torp LLP 
 1600 Pioneer Tower 
 888 SW Fifth Avenue 
 Portland, OR 97204 
 Attn: Sherrill A. Corbett 
 Fax: (503) 972-3718 
  
 or to Subscriber at his
address set out on the signature page hereto, or such other address as may be furnished in writing to the other parties hereto. 
  
 10. This Agreement and the attachments hereto constitute the entire agreement among the Company and Subscriber with respect to the subject matter hereof.
This Agreement supersedes all prior agreements between the parties with respect to the shares purchased hereunder and the subject matter hereof. 
  
 11. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision. 

 

 SUBSCRIPTION AGREEMENT 
 DAYSTAR TECHNOLOGIES, INC. 
 August 6, 2003, PAGE 4 

 12. This Agreement may be executed in counterparts, all of which together shall constitute one and the
same agreement. 
  
 Date:
                     
  

	 Signature of Individual Subscriber

	
	
 Name of Subscriber, which is an
entity

		
	By:	 	

	 	 	 (Signature)

		
	 Name:
	 	

		
	 Title:
	 	

		
	 SUBSCRIBER:
	 	 
	 Name (please print)
	 	 
			
	 Address
	 	 	 	 
			
	 City
	 	State	 	Zip
		
	 Telephone No.
	 	 
	
	 Social Security No.

	 or Taxpayer Identification Number

  
 ACCEPTED as to
                                        
                     (             ) Units 
  
 DayStar Technologies, Inc. 
  

	
	

	 By: John R. Tuttle

	 Its: President

  

 SUBSCRIPTION AGREEMENT 
 DAYSTAR TECHNOLOGIES, INC. 
 August 6, 2003, PAGE 5 

 ATTACHMENT TO 
  
 SUBSCRIPTION AGREEMENT 
  
 OF 
  
 DAYSTAR TECHNOLOGIES, INC. 
  
 An accredited investor under Regulation D, includes an investor satisfying at least one of the following criteria: 
  
 (a) The investor is an individual who has a net worth, individually or jointly with spouse, in excess of $1,000,000 (including personal
residences and personal property); or 
  
 (b) The
investor is an individual who had income, exclusive of that spouse, in excess of $200,000 in each of the two most recent years, or joint income with spouse in excess of $300,000 in each of those two years, and has a reasonable expectation of
reaching the same income level in the current year; 
  
 (c) An employee benefit plan within the meaning of the Employee Retirement Security Act of 1974 if the investment decision is made by a plan fiduciary which is either a bank, savings and loan association, insurance company, or a registered
investment adviser, or, if the employee benefit plan has total assets in excess of $500,000 or, in a self-directed plan, with investment decisions made solely by persons that are accredited investors; 
  
 (d) A corporation, a business trust, a partnership, or an
organization described in Section 501(c)(3) of the Internal Revenue Code (tax-exempt organization), which is not formed for the specific purpose of acquiring Units and has total assets in excess of $5,000,000; 
  
 (e) The investor is (i) a bank or saving and loan
association acting in its individual or fiduciary capacity; (ii) a broker or dealer registered under the Securities Exchange Act of 1934; (iii) an insurance company; (iv) an investment company registered under the Investment Company Act of 1940 or a
business development company; (v) a Small Business Investment Company licensed by the U.S. Small Business Administration; (vi) a private business development company; or (vii) any trust, with total assets in excess of $5,000,000 not formed for the
specific purpose of acquiring Units, whose purchase is directed by a sophisticated person with such knowledge and experience in financial and business matters that the person is capable of evaluating the merits and risks of the prospective
investment; 
  
 (f) The investor is an entity in
which all of the equity owners are accredited investors. 
  

 SUBSCRIPTION AGREEMENT 
 DAYSTAR TECHNOLOGIES, INC. 
 August 6, 2003, PAGE 6Employment Agreement with John R. Tuttle, dated October 31, 2003

 EXHIBIT 10.1 
  
 EMPLOYMENT AGREEMENT 
 Of 
 JOHN R. TUTTLE 
  
 THIS EMPLOYMENT AGREEMENT, dated as of October 31, 2003, is by and between DAYSTAR TECHNOLOGIES, INC., a
Delaware corporation (“Employer”), and Dr. John R. Tuttle, an individual (“Executive”). 
  
 WHEREAS, the Employee and Employer desire to set forth in writing their contract with respect to Executive’s employment by Employer; 
  
 IN CONSIDERATION OF the mutual covenants herein contained, and other good and
valuable consideration, the parties agree as follows: 
  
 ARTICLE
1.    EMPLOYMENT AND DUTIES 
  

	1.1	Employment. 

  
 Employer employs Executive, and Executive agrees to serve, as its President, Chief Executive Officer and Chairman of the Board, subject to the control of the Board of Directors, and have general supervision, direction
and control over the business and affairs of the Corporation and its employees. Executive will be primarily responsible for carrying out all orders and resolutions of the Board of Directors and such duties as may from time to time be assigned to
Executive by the Board of Directors, during the Period of Employment (as defined in Section 2.1). 
  

	1.2	Duties. 

  
 Executive shall devote Executive’s full business time, attention and best efforts to the affairs of Employer during the Period of Employment and shall have the duties, responsibilities, authority as shall be
assigned to Executive from time to time by the Board. Executive agrees to abide by all by-laws, policies, practices, procedures or rules of Employer to the extent they are not inconsistent with this Agreement, in which case the provisions of this
Agreement prevail. 
  

	1.3	Other Activities. 

  
 Executive may engage in other activities, such as activities involving charitable, educational, religious and similar types of organizations, speaking engagements and similar activities, and serve on the board of
directors of other corporations. However, in each case such activities may be engaged in only to the extent that they do not materially detract from or limit the performance of Executive’s duties under this Agreement or inhibit or conflict in
any material way with the business of Employer, as determined by the Board. 
  
 ARTICLE 2.    TERM 
  

	2.1	Duration Under Normal Circumstances. 

  

 Page 1—Employment Agreement 

 Subject to the terms of this Agreement, which provides for renewal or earlier termination, the “Period of
Employment” shall commence on the date of this Agreement and shall extend for a period of three years from that date. 
  

	2.2	Renewal of Term. 

  
 On the date that Executive completes the first term of employment and on each successive anniversary of that date (the “Anniversary Date”), the Period of Employment shall be automatically extended and
renewed for one additional year unless, not less than 30 days prior to such Anniversary Date, the Board of Directors or the Executive shall give written notice to the other that the Period of Employment shall not be so extended and renewed.

  

	2.3	Termination Events. 

  
 Notwithstanding anything in this ARTICLE 2 to the contrary, the Period of Employment shall terminate upon the earliest to occur of the following: 
  
 (a) Upon delivery of notice by either party to the other, in accordance with the provisions of Section 7.2, that the Period
of Employment is terminated due to the Disability of Executive. “Disability” means Executive’s inability to perform the essential functions of Executive’s position under this Agreement with or without reasonable accommodation due
to physical or mental incapacity for a period of 90 consecutive days, as reasonably determined by Employer after consultation with a qualified physician selected by Employer. 
  
 (b) The death of Executive. 
  
 (c) As of delivery of notice by Employer to Executive, in accordance with the provisions of Section 7.2, that Employer elects to terminate the Period of
Employment for Cause. “Cause” means any one of the following: (a) fraud, (b) material misrepresentation in connection with performance of Executive’s job duties, (c) material theft or embezzlement, (d) conviction of, or a plea of
guilty or no contest to, a felony under the laws of the United States or any state thereof, (e) material violation of the terms of the Employee Nondisclosure, Developments and Non-solicitation Agreement described in Section 5.1, or (f) the continued
failure by the individual to satisfactorily perform any of his/her material employment duties or duties inherent in Executive’s position or title with Employer, which failure continues, in the reasonable judgment of the Board, after written
notice given to the Executive by the Board with the opportunity to cure such failure within 10 business days. 
  
 (d) The 30th day after delivery of notice by Employer to Executive, in accordance with the provisions of Section 7.2, that Employer elects to terminate
the Period of Employment (an “Involuntary Termination by Employer”), other than a termination by Employer for Cause. 
  
 (e) The 30th day
after notification by Executive to Employer, whether in accordance with the provisions of Section 7.2 or otherwise, that Executive elects to terminate the Period of Employment (a “Voluntary Termination by Executive”). 
  

 Page 2—Employment Agreement 

 ARTICLE 3.    COMPENSATION 
  

	3.1	Base Salary. 

  
 Employer will pay to Executive during the Period of Employment an annualized base salary of $150,000, paid in accordance with the regular payroll practices of Employer, but no less frequently than monthly. The base
salary shall be adjusted at the end of each year of employment to reflect any change in the cost of living by multiplying the salary for the prior year by a fraction, the numerator of which is the National Consumer Price Index (“NCPI”) for
the month most recently released by the Bureau of Labor Statistics of the United States Department of Labor and the denominator of which is the NCPI for the identical month in the preceding year. If this index is discontinued, changed or
unavailable, Employer shall determine and utilize a similar criterion for reflecting any increase in the cost of living. The base salary shall not be decreased at any time during the Period of Employment without the prior written consent of
Executive. 
  

	3.2	Incentive Compensation. 

  
 (a) Annual Bonus/Long-term Incentive Plan. 
  
 Executive shall be entitled to receive an annual bonus and long-term incentive plan award, if created, and provided specified performance goals are
achieved, as set forth on Appendix A. Executive’s entitlement to any further or future bonuses or long-term incentive awards shall be in the sole discretion of the Board of Directors of Employer. Executive shall be eligible to participate in
such bonus or incentive compensation plans or programs as may be adopted by Employer from time to time. Employer shall have the right to alter, amend or eliminate all or any part of any such plan or program at any time, without compensation to
Executive. 
  
 (b) Incentive Salary. 
  
 Executive shall be entitled to receive an incentive salary equal to one-tenth
(10%) of the adjusted net profits (hereinafter defined) of the Employer during each fiscal year beginning or ending during the Period of Employment. “Adjusted net profit” shall be the net profit before federal and state income taxes,
determined in accordance with accepted accounting practices by the independent accounting firm employed by the Employer as auditors and adjusted to exclude: (i) any incentive salary payments paid pursuant to this Agreement; (ii) any contributions to
pension and/or profit-sharing plans; (iii) any extraordinary gains or losses (including, but not limited to, gains or losses on disposition of assets); (iv) any refund or deficiency of federal and state income taxes paid in a prior year; and (v) any
provision for federal or state income taxes made in prior years which is subsequently determined as unnecessary. The determination of the adjusted net profits made by the independent accounting firm employed by the Employer shall be final and
binding upon Executive and the Employer. For the first and last fiscal years ending and beginning, respectively, during the term of this Agreement, the incentive salary shall be computed for the proportion of the fiscal year coextensive with this
Agreement. The incentive salary shall be paid within ninety (90) days after the end of each fiscal year. The maximum 
  

 Page 3—Employment Agreement 

 incentive salary payable for any one year shall not exceed two hundred percent of Executive’s base salary unless
such greater amount is authorized by the Board of Directors. 
  
 The Board of
Directors and the Executive may agree to waive the cost of living adjustment in (a) above or the incentive pay in (b) above. Both parties must agree to waive these requirements or the original clause shall stand in effect. 
  
 ARTICLE 4. BENEFITS 
  

	4.1	Executive Benefits. 

  
 In addition to the cash compensation provided for in Section 3, Executive, subject to meeting eligibility requirements and subject to the provisions of this Agreement, shall be entitled to participate without
discrimination or duplication in all employee benefit plans of Employer, as presently in effect or as they may be modified or added to by Employer from time to time, to the extent such plans are available to other similarly situated Executives or
employees of Employer, including, without limitation, plans providing retirement benefits, medical and other health insurance, life insurance, disability insurance, and accidental death or dismemberment insurance plans. Nothing herein contained
shall be construed as requiring Employer to establish or continue any particular benefit plan. 
  
 (a) Vacation. 
  
 Employee shall
be entitled to three (3) weeks of paid vacation during each year of employment. If vacation is not taken, for the benefit of the Employer, Executive shall be reimbursed at his base salary rate for time not taken. 
  
 (b) Automobile. 
  
 Employer will provide to Employee, during the term of this agreement, the use of a new automobile of Employee’s choice,
at a price not to exceed twenty thousand ($20,000.00) dollars and will replace the automobile with a new one every two (2) years. Employer will pay all automobile operating expenses incurred by Employee in the performance of Employee’s business
duties. The Employer will procure and maintain in force an automobile liability policy for the automobile with coverage, including Employee, in the minimum amount of one million combined single limit on bodily injury and property damage. 

 

	4.2	Business Expenses. 

  
 Employer shall in accordance with and to the extent of, its policies in effect from time to time, reimburse all ordinary and necessary business expenses
reasonably incurred by Executive in performing his duties as an employee of Employer, provided that Executive accounts promptly for such expenses to Employer in the manner prescribed from time to time by Employer. 
  

 Page 4—Employment Agreement 

 ARTICLE 5.    EMPLOYEE COVENANTS 
  

	5.1	Executive Nondisclosure, Developments and Non-solicitation Agreement. 

  

The obligations of Executive and the rights of Employer set forth in this Agreement are in addition to those set forth in the Employee Nondisclosure, Developments and
Non-solicitation Agreement attached hereto as Appendix A, which is being executed by the Executive simultaneously with the execution of this Agreement. 
  

	5.2	Agreement to Avoid Conflicts of Interest. 

  
 During the Period of Employment, neither Executive, Executive’s spouse, or any member of Executive’s immediate family may directly or indirectly, receive any
gift or remuneration from, or borrow from, lend to, invest in or engage in any substantial financial transaction with (i) a business which competes with any business in which Employer is engaged or proposes to become engaged; or (ii) a customer or
supplier of Employer, without first having provided full disclosure to and receiving written approval from the President. The foregoing prohibition on loans and financial transactions shall not apply to loans obtained from a bank, savings and loan
or other financial institution through the normal application and approval process. The foregoing prohibition on investments shall not apply to any purchase of stock in the open market of a company that is traded on a national stock exchange.

  

	5.3	Equitable Remedies and Severability. 

  
 Executive agrees that, in the event of a breach his covenants in this ARTICLE 5, money damages would be an inadequate remedy and extremely difficult to measure. Executive
agrees, therefore, that Employer shall be entitled to an injunction to restrain Executive from such breach or threatened breach. Nothing in this Agreement shall be construed as preventing Employer from pursuing any remedy at law or in equity for any
breach or threatened breach. Executive agrees that each provision in this Agreement will be treated as a separate and independent clause, and the enforceability of any one clause will in no way impair the enforceability of any of the other clauses
in this Agreement. 
  

	5.4	Survival of Obligations. 

  
 The provisions of this ARTICLE 5 shall survive termination of this Agreement. 
  
 ARTICLE 6.    TERMINATION 
  

	6.1	Termination by Employer for Cause or Voluntary Termination by Executive. 

  
 If the Period of Employment terminates as a result of a termination by Employer for Cause or a voluntary termination by Executive, Employer
will pay Executive the base salary otherwise payable through the day on which Employer delivers notice of such termination. Executive shall have no right to any bonus or other benefits after the date of termination, other than as required by law.

  

 Page 5—Employment Agreement 

	6.2	Termination by Employer Without Cause. 

  
 If the Period of Employment terminates as a result of an Involuntary Termination by Employer without Cause, then Employer promptly will pay Executive any base salary and
benefits which have been earned or become payable pursuant to this Agreement as of the date of termination but which have not yet been provided to Executive, and, subject to Executive’s not having willfully and materially breached the terms of
the Employee Nondisclosure, Developments and Nonsolicitation Agreement attached hereto as Appendix B, will do the following: 
  
 (a) Continue Executive’s base salary for a period of six months, less applicable withholding, in installments as payable under Section 3.1; and

  
 (b) At the time annual bonuses are payable pursuant to the
annual bonus program described in Appendix A, pay Executive an amount equal to the annual bonus to which Executive would otherwise have become entitled under the Employer’s annual bonus program had Executive remained continuously employed for
the full fiscal year in which termination occurred and continued to earn base salary at the rate in effect at the date of termination of employment, based upon Employer’s performance for such period. 
  
 (c) At the time the incentive salary payment otherwise would have been
payable under Section 3.2(b), pay Executive an amount equal to the incentive salary to which Executive would otherwise have become entitled under Section 3.2(b) had Executive remained continuously employed for the full fiscal year in which
termination occurred, based upon Employer’s adjusted net profit for such period. 
  
 (d) In addition, to the extent not already vested, shares of restricted stock granted to Executive pursuant to the Restricted Stock Purchase Agreement by and between Employer and Executive dated September 30, 2003
shall become vested in full as of the date of Executive’s termination without Cause. 
  

	6.3	Termination in the Event of Death or Disability. 

  
 If the Period of Employment terminates as a result of (i) the death of Executive or (ii) Executive’s Disability, Executive (or Executive’s estate) will be
entitled to receive the base salary otherwise payable under Section 3.1 through the end of the month in which Executive’s Period of Employment terminates, together with other benefits which have been earned or become payable as of the date of
termination but which have not yet been paid to Executive. Executive (or Executive’s estate) shall receive any bonus or other benefit payable prior to the date of termination, but Executive shall have no right to any bonus or other benefits
after the date of termination, other than as required by law. 
  

	6.4	Exclusive Remedy. 

  
 Executive shall have no claim for damages or other remedies, at law, in equity or otherwise, by reason of any breach of this Agreement by Employer, or of termination of this Agreement by reason thereof other than as
set forth in this ARTICLE 6. 
  

 Page 6—Employment Agreement 

 ARTICLE 7.    GENERAL PROVISIONS 
  

	7.1	Successors and Assigns. 

  
 For purposes of this Agreement, “Employer” shall include any corporation or other entity, which is the surviving or continuing entity in respect of any, merger,
consolidation, asset acquisition or other form of business combination. This Agreement shall be binding upon and shall inure to the benefit of Executive, Executive’s heirs, executors, administrators and beneficiaries, and shall be binding upon
and inure to the benefit of Employer and its successors and assigns. In that this Agreement is a personal services contract, it shall not be assigned by Executive. 
  

	7.2	Notices. 

  
 All notices or other communications hereunder shall be deemed to have been duly given and made if in writing and if served by personal delivery upon the party for whom it is intended, if delivered by registered or
certified mail, return receipt requested, or by a national courier service, or if sent by telecopier, provided that the telecopy is promptly confirmed by telephone confirmation thereof, to the person at the address set forth below, or such other
address as may be designated in writing hereafter, in the same manner, by such person: 
  
 To Executive: 
  
 The address of
Executive’s principal residence as it appears in the Company’s records. 
  
 To Employer: 
  
 DayStar Technologies,
Inc. 
 900 Golden Gate Terrace, Suite A 
 Grass Valley, California 95945 
 Facsimile: 530-271-5558 
 Attention: Dr. John R. Tuttle 
  

	7.3	Choice of Law; Venue. 

  
 This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of California, without regard to the conflicts of law rules of
California. 
  

	7.4	Entire Agreement. 

  
 This Agreement constitutes the entire understanding between Employer and Executive relating to the employment of Executive by Employer and its subsidiaries and supersedes and cancels all prior agreements and
understandings with respect to the subject matter of this Agreement. 
  

	7.5	Amendment. 

  
 This Agreement may be amended but only by a subsequent written agreement of the parties. 
  

 Page 7—Employment Agreement 

	7.6	Paragraph Headings. 

  
 Paragraph headings are for convenience only and are not intended to expand or restrict the scope or substance of the provisions of this Agreement. 
  

	7.7	Assignability. 

  
 The rights and obligations of the Employer under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the Employer. This Agreement is a personal employment agreement and
the rights, obligations and interests of the Employee hereunder may not be sold, assigned, transferred, pledged or hypothecated. 
  

	7.8	Waiver. 

  
 No failure on the part of either party to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right or remedy
hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy granted hereby or by any related document or by law. 
  

	7.9	Severability. 

  
 If any portion of this Agreement is at any time deemed to be in conflict with any applicable statute, rule, regulation, ordinance or principle of law, such portion shall be deemed to be modified or altered to the
extent necessary to conform thereto or, if that is not possible, to be omitted from this Agreement; and the invalidity of any such portion shall not affect the force, effect and validity of the remaining portion hereof. 
  

	7.10	Interpretation; Construction. 

  
 The various headings or captions in this Agreement are for convenience only and shall not affect the meaning or interpretation of this Agreement. Wherever possible, each
provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective
only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
  

	7.11	Counterparts; Facsimile. 

  
 This Agreement may be signed in multiple counterparts and when so signed will be considered to have the force and effect of an original. This Agreement may be delivered
by facsimile, and when so delivered will have the same force and effect as delivery of an original signature. 
  

	7.12	Attorney Fees. 

  
 If any action at law, in equity or by arbitration is taken to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and 
  

 Page 8—Employment Agreement 

 necessary disbursements in addition to any other relief to which such party may be entitled, including fees and expenses
on appeal. 
  

	7.13	Arbitration. 

  
 Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by a single arbitrator in arbitration administered by the American Arbitration Association in accordance
with its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The cost of such arbitration shall be borne by the Employer. Nothing in this Section 7.13 shall
limit the right of Employer to enforce by court injunction or other equitable relief Executive’s obligations under ARTICLE 5. The arbitrator shall have the authority to award such remedies or relief that a court of the State of California could
order or grant in an action governed by California law, including, without limitation, specific performance of any obligation created under this Agreement, the issuance of an injunction, or the imposition of sanctions for abuse or frustration of the
arbitration process, but shall not be empowered to award punitive damages. 
  

	7.14	Withholding. 

  
 All payments to be made to Executive under this Agreement will be subject to required withholding taxes and other deductions. 
  
 IN WITNESS WHEREOF, Employer and Executive have made and entered into this Agreement as of the date first above written. 
  

	EMPLOYEE:	    	 
		
	 	    	

		
	 EMPLOYEE:
	    	DAYSTAR TECHNOLOGIES, INC.
		
	 	    	

	 	    	 John R. Tuttle, President, Chairman
 and Chief Executive Officer

  

 Page 9—Employment Agreement 

 Appendix A 
  

Annual Bonus 
  
 [To be determined.] 
  
 Long-Term Incentive Award 
  
 [To be determined.]

  

 1 

 Appendix B 
  

DAYSTAR TECHNOLOGIES, INC. 
  
 SUMMARY SHEET FOR THE EMPLOYEE NONDISCLOSURE, DEVELOPMENTS AND NONSOLICITATION AGREEMENT 
  
 The Employee Nondisclosure, Developments and Non-solicitation Agreement attached to this
Summary (this “Agreement”) contains provisions on the following topics: 
  
 1.    Your duty to protect the Company’s confidential information. 
  
 2.    Your duty not to solicit the Company’s employees, customers or suppliers. 
  
 3.    Loss of Stock Options in the event you breach any
of the preceding duties or compete with the Company. 
  
 4.    Your agreement to assign to the Company all intellectual property that you may create while performing services for the Company. 
  
 5.    A list of all prior inventions and other intellectual property that you created or had rights to
before you joined the Company. 
  
 6.    Your
agreement to license any prior inventions and other intellectual property to the Company on a royalty-free basis. 
  
 7.    Your duty not to violate any prior agreement that you may have with a previous employer. 
  
 8.    Your duty not to use any confidential or trade
secret information of a previous employer or any other person in your work for the Company. 
  
 9.    Your duty to return the Company’s confidential information and any Company property that you may have if and when you leave the Company for any reason. 
  
 This Summary is NOT a part of the Agreement itself and is only an outline of some of
the provisions in the Agreement. You MUST read the entire Agreement before signing it in order to understand what you are signing. The Agreement, and not this Summary, will control. 
  

 1 

 DAYSTAR TECHNOLOGIES, INC. 
  
 EMPLOYEE NONDISCLOSURE, DEVELOPMENTS AND NONSOLICITATION AGREEMENT 
  
 This Employee Nondisclosure, Developments and Non-solicitation Agreement, dated and effective
as of October 30, 2003 (this “Agreement”), is between Daystar Technologies, Inc., a Delaware corporation and Dr. John R. Tuttle (“Employee”). 
  
 1.    Definitions. The following capitalized words used in this Agreement will have the meanings
assigned below: 
  
 “Company” includes the company
described in the first paragraph that enters into this Agreement with Employee, as well as its parent, subsidiaries and affiliates. 
  
 “Confidential Information” includes all information related to solar power and/or photovoltaic cells, modules and systems and all other trade
secrets and all other proprietary or confidential information concerning the Company, including its organization, business operations, relationships, finances, budgets, projections, marketing plans, strategies, forecasts, products, services, planned
products and services, prices, costs, customers and suppliers, to which Employee has had or may have access in the Non-Competition Industry. For purposes of this section, the “Non-Competition Industry” shall be defined as Thin-Film
and/or Concentrator Photovoltaic Module and System Technology Development. The term “Confidential Information” also includes all notes, memoranda, summaries, reports, lists, records, drawings, sketches, specifications, data and other
documentation about any of the matters described in the preceding sentence, whether prepared by Employee or others, in any form, including paper, electronic, analog, digital or magnetic form, human or machine-readable form or any other tangible
medium of expression. The term “Confidential Information” does not include any information that is generally available to and known by the general public without violating the terms of this Agreement. 
  
 “Intellectual Property” means all intellectual property, including
all works of authorship, computer programs, source code, object code, designs, methods, systems, processes, formulae, data, functional specifications, know-how, improvements, inventions, discoveries, developments, techniques, licenses, Confidential
Information, patents, patent applications, copyrights, moral rights, trademarks, trade names, service marks and trade dress, in each case whether or not patentable, registrable under copyright or similar statutes or subject to analogous protection.

  
 “Materials” means all property of the Company,
including (a) all equipment and supplies such as laptops and other computers, handheld computer devices and cell phones, and (b) all documents, notes, drawings, specifications, computer programs, data and other information of any nature pertaining
to any Intellectual Property in any form, including paper, electronic, analog, digital or magnetic form, human or machine-readable form or any other tangible medium of expression. 
  
 “Options” means any options granted to Employee under the Option Plan. 
  

 2 

 “Option Gain” means the amount by which the Fair Market Value of the Company Common Shares
purchased upon exercise of an Option, as of the date of such exercise, exceeds the Exercise Price of such Option. Terms capitalized in the foregoing sentence have the same meanings as defined in the Option Plan. 
  
 “Option Plan” means the DayStar Technologies, Inc. Equity Incentive
Plan. 
  
 “Work” means all subject matter invented,
conceived, developed, created or enhanced by Employee during the period of Employee’s employment with the Company. 
  
 2.    General Agreements. Employee agrees that in the course of rendering services to the Company, Employee has acquired and
will acquire information about the Company that is non-public, confidential and/or proprietary in nature. Employee understands that the Company is engaged in a highly competitive business and must protect its substantial investment in developing and
maintaining its reputation, good will and status in the marketplace. Employee agrees that if Employee elects to compete with the Company, the Company is warranted in terminating Employee’s right to participate in the Company’s future
performance through the Company’s Option Plan. Employee further agrees that Employee’s obligations under Sections 3 through 5 of this Agreement are irrevocable, absolute and unconditional. 
  
 3.    Protection of Confidential Information.
During the period of Employee’s employment with the Company, and at all times after the termination of Employee’s employment for any reason, Employee will protect and keep secret all Confidential Information of the Company and will not use
or disclose any Confidential Information to any person other than the Company, its authorized employees and such other persons to whom Employee has been instructed by the Company to make disclosure, in each case only to the extent required in the
course of Employee’s service to the Company. Because Employee has had or may have access to the confidential information of third parties with whom the Company does business, Employee will treat that information with the same degree of care as
required by this Agreement for the Company’s Confidential Information. Employee’s obligations under this Section with respect to any particular Confidential Information of the Company, as well as the confidential information of others,
will expire at such time as that information ceases to be confidential. 
  
 4.    Non-solicitation. 
  
 4.1    Of Company Customers and Suppliers. While Employee is employed at the Company, and for two years following termination of Employee’s employment for any reason, Employee will not contact, take,
solicit or attempt to contact, take or solicit, any customers, suppliers or other business contacts of the Company. 
  
 4.2    Of Company Employees. While Employee is employed at the Company, and for two years following termination of
Employee’s employment for any reason, Employee 
  

 3 

 will not hire, solicit or attempt to hire or solicit, any officer, employee, independent contractor or agent of the
Company or induce or attempt to induce any of them to discontinue their relationships with the Company. This provision applies to people who were officers, employees, independent contractors or agents of the Company at the time Employee ceases to be
employed by the Company as well as to those persons who ceased to be officers, employees, independent contractor and agents of the Company before Employee’s termination. This provision also applies whether or not that officer, employee,
independent contractor or agent provided services to Company pursuant to a written agreement and whether or not that person’s engagement is or was fulltime, part time or temporary, for a stated term or was terminable at will. 
  
 5.    Extension of Time. Employee agrees
that the non-solicitation covenant described in Section 4 above will be extended by a time period equal to any time during which Employee engages in any activities violating that covenant. 
  
 6.    Modification of Sections 3 and 4. The
parties acknowledge and agree that the duration, scope and geographic area of the obligations described in Sections 3, 4 and 5 are fair, reasonable and necessary in order to protect the Company’s good will and legitimate business interests,
that Employee has received adequate consideration for those obligations and that those obligations do not prevent Employee from earning a livelihood. If, however, for any reason any court of competent jurisdiction determines that the duration, scope
or geographical area of those obligations is not reasonable, that consideration is inadequate or that Employee has been unlawfully prevented from earning a livelihood, those obligations will be interpreted, modified or rewritten to include as much
of the duration, scope and geographic area identified in those obligation as will render those obligations valid and enforceable. 
  
 7.    Remedies for Breach of Sections 3, 4 and 5. Employee acknowledges that if Employee breaches Section 3, 4 and/or 5
of this Agreement, the Company will suffer irreparable harm for which an adequate monetary remedy does not exist and a remedy at law may prove to be inadequate. 
  

7.1    Injunctive Relief and Other Remedies. Accordingly, in the event of any actual or threatened breach by Employee
of Section 3, 4 and/or 5 of this Agreement, the Company will be entitled to obtain injunctive relief in addition to any other remedies in equity or law, in any court of competent jurisdiction, without the necessity of proving actual damages or
posting a bond or other security. 
  
 7.2    Costs and Expenses. In addition to any other remedy available to the Company, Employee agrees that the Company will have the right to recover any costs and expenses, including reasonable attorney
fees, incurred in enforcing this Agreement against Employee, and Employee consents to the entry of such relief against Employee and agrees not to contest such entry. Employee agrees that Employee’s obligations under this Agreement are
independent of the Company’s obligations to Employee and that any cause of action Employee may have against the Company will not constitute a defense to the Company’s enforcement of this Agreement against Employee. Employee also agrees not
to assert a defense that the Company has an adequate remedy at law. 
  

 4 

 7.3 Forfeiture of Stock Options and Option Gain. 
  
 (a) Termination of Options and Forfeiture of Option
Gain. If the Board of Directors of the Company determines in its sole discretion that (a) Employee has breached any of the provisions found in Sections 3 and 4 of this Agreement; or (b) that Employee Competes with the Company during
Employee’s employment or at any time within two years following the termination of Employee’s employment with the Companyfor any reason, then (1) all of Employee’s Options will terminate effective as of the date of that breach,
as determined by the Board of Directors, unless terminated sooner by operation of another term or condition of the Option or the Option Plan; and (2) Employee will immediately pay to the Company any Option Gain realized by Employee from exercising
all or a portion of Employee’s Options. For purpose of this Section, the term “Competes” means that Employee directly or indirectly (x) owns, operates, manages or controls; (y) serves as an officer, director, partner, employee, agent,
consultant, advisor or developer of; or (z) has any direct or indirect financial interest in, any person or entity located any where in the world, which competes directly with or any product line of or service offered by the Company which is
material to the business of the Company. Nothing in this Section will prohibit Employee from acquiring or holding less than one percent of any class of publicly traded securities. 
  
 (b) Right of Set-off. By signing this Agreement Employee agrees that the Company may deduct from any
amounts the Company owes Employee from time to time (including any amount owed to Employee as wages or other compensation, fringe benefits, or vacation pay), the amount Employee owes the Company under paragraph 7.3(a) above. Whether or not the
Company elects to make any set-off in whole or in part, if the Company does not recover by set-off the full amount Employee owes the Company, calculated as set forth above, Employee agrees to pay immediately the unpaid balance to the Company.

  
 (c) Release of Obligation. The Company
may release Employee from Employee’s obligations under this Section 7.3 only if the Board of Directors determines in its sole discretion that such action is in the best interests of the Company. 
  

	8.	Intellectual Property. Employee agrees to disclose promptly to the Company all Intellectual Property made, conceived, created, discovered, reduced to practice or
learned by Employee, either alone or jointly with others, during the period of Employee’s employment with the Company. 

  

	 	8.1	Prior Inventions. Employee has listed in Exhibit A to this Agreement, all Intellectual Property that Employee made, conceived, created, discovered, reduced to
practice or learned before Employee’s employment with the Company (collectively, the “Prior Inventions”) that relate in any way to the business, products or services of the Company. If no such list is attached, Employee represents
that there are no Prior Inventions. 

  

 5 

	 	8.2	Copyrights. All Works made by Employee during the course of Employee’s employment, which are or may be protected by a copyright, are works made for hire within
the meaning of applicable copyright law. 

  

	 	8.3	Ownership of Intellectual Property. All Intellectual Property that Employee may have or acquire during Employee’s employment at the Company will be the sole
property of the Company. Employee assigns to the Company all of Employee’s present right, title and interest in that Intellectual Property, whether presently owned or acquired at any time during Employee’s employment at the Company. [I
would not agree to this waiver, the future is too cloudy to waive this right.] Employee agrees to take all measures requested by the Company to assign all of Employee’s right, title and interest in that Intellectual Property to the Company or
its designee. Employee agrees to take all measures requested by the Company to help the Company in obtaining protection for, and benefit from, that Intellectual Property, including (a) making application for United States and foreign patents on any
invention if requested by the Company; and (b) registering, maintaining and enforcing any United States or foreign Intellectual Property rights. The Company will bear all costs of such measures taken by Employee. 

  
 NOTICE TO EMPLOYEE: This provision does not apply to Intellectual
Property for which no equipment, supplies, facility or trade secrets of the Company were used and which was developed entirely on Employee’s own time, unless (1) the invention relates directly to the Company’s business; (2) the
Intellectual Property relates to actual or demonstrably anticipated research or development; or (3) the Intellectual Property results from any work performed by the Employee for the Company. 
  

	 	8.4	License. Employee hereby grants to the Company a nonexclusive, royalty free, perpetual, irrevocable, world wide license (with the right to sublicense) to make, have
made, copy, modify, make derivative works of, publicly display and perform, use, sell and otherwise distribute any Prior Invention that Employee incorporates into any product, process, machine or other property of the Company.

  

	 	8.5	Surviving Obligations. Employee’s obligation to assist the Company in obtaining and enforcing rights in Intellectual Property in all countries continues beyond
the termination of Employee’s employment, but the Company will compensate Employee at a reasonable rate after termination of employment for time actually spent by Employee at the Company’s request on such assistance.

  

	 	8.6	Power of Attorney. Employee hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as Employee’s agent and
attorney-in-fact in the following limited capacity: to act for and on Employee’s behalf and to execute and file any such application or applications and to perform all other lawfully permitted acts to further the prosecution and issuance of
patents, copyrights or similar protections with the same legal force and effect as if 

  

 6 

 executed by Employee but only if the Company is unable, after reasonable effort, to secure
Employee’s cooperation. 
  

	9.	Return of the Company Property. If Employee’s employment is terminated for any reason, Employee agrees to deliver promptly to the Company all Materials, and will
not take, or retain in Employee’s possession, any of the Materials or any copies of the Materials. Employee will allow Company to delete all Confidential Information from Employee’s computers, cell phones, personal digital assistant and
other equipment and media. Employee also agrees to sign and deliver to the Company any oath requested by Company to verify Employee’s understanding of and compliance with the terms of this Agreement. 

  

	10.	Employee Representations, Warranties and Covenants. Employee represents, warrants and covenants to the Company the following: 

  

	 	10.1	Employee’s employment with the Company does not and will not breach any prior agreement that Employee may have with another party; 

  

	 	10.2	Employee has not and will not improperly use or disclose during the course of Employee’s employment with the Company a previous/concurrent employer’s or third
party’s proprietary information or trade secrets unless the previous/ concurrent employer or third party has consented to that use and/or disclosure in writing; 

  

	 	10.3	Employee has had a reasonable opportunity to review this Agreement and has either sought, or waived, legal counsel’s review of this Agreement; 

 

	 	10.4	Employee has not entered into any agreement, either written or oral, that conflicts with this Agreement; 

  

	 	10.5	This Agreement creates an obligation on the Company or any other person to employ or continue Employee’s employment. In the event that Company terminates Employee
without cause, then Employee’s obligations will cease and Employee shall be released from this Agreement and any obligations hereunder and the Company’s rights under this Agreement will not survive termination of Employee’s employment
without cause; and 

  

	 	10.6	If Employee leaves the employ of the Company for any reason, Company may notify Employee’s new employer or prospective employer about Employee’s rights and
obligations under this Agreement and may furnish a copy of this Agreement to that person. 

  

	11.	General Provisions. 

  

	 	11.1	Governing Law. This Agreement will be governed by the laws of the State of California, without regard to its conflicts of laws principles. 

  

 7 

	 	11.2	Dispute Resolution. Any controversy or claim arising out of or relating to this Agreement will be settled by a single neutral arbitrator in arbitration administered by
the American Arbitration Association in accordance with its Commercial Arbitration Rules. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction of that controversy or claim. The cost of that arbitration
will be borne by the Company. Nothing in this Section will limit the Company’s right to enforce by court injunction or other equitable relief Employee’s obligations under this Agreement. The arbitrator will have the authority to award such
remedies or relief that a court of the State of California could order or grant in an action governed by California law, including specific performance of any obligation created under this Agreement, the issuance of an injunction, or the imposition
of sanctions for abuse or frustration of the arbitration process, except that the arbitrator will not be empowered to award punitive damages. 

  

	 	11.3	Amendment; Waiver. This Agreement may be amended only in a writing duly executed by both parties, or, in the case of a waiver, signed by the party waiving compliance.
A party’s failure or delay in requiring performance of any provision of this Agreement will not affect that party’s right at a later time to require performance of that provision. A party’s failure or delay in enforcing its rights
under this Agreement will not constitute a waiver of those rights. A party’s waiver of any breach of any term or covenant of this Agreement, whether by conduct or otherwise, in any one or more instances, will not be deemed to be, or construed
as, a further or continuing waiver of any such breach, or a waiver of the breach of any other term or covenant contained in this Agreement. 

  

	 	11.4	Successors and Assigns. This Agreement will be binding upon Employee and Employee’s administrators, executors, heirs and assigns, and will inure to the benefit of
Employee’s administrators, executors, heirs and assigns, although the obligations of Employee are personal and may be performed only by Employee. The Company may assign its rights under this Agreement to any corporation or other legal entity
with or into which the Company or its successors may be merged or which may succeed to all or any part of the Company’s assets or business. This Agreement will also be binding upon and inure to the benefit of the Company and its subsidiaries,
successors and assigns. 

  

	 	11.5	Counterparts; Facsimile. This Agreement may be signed in multiple counterparts and when so signed will be considered to have the force and effect of an original. This
Agreement may be delivered by facsimile, and when so delivered will have the same force and effect as delivery of an original signature. 

  

	 	11.6	Attorney Fees. If any action is brought to enforce any of the provisions of this Agreement or to obtain money damages for the breach of any of its terms, and that
action results in the award of a judgment for money damages or in the granting of any injunction in favor of one of the parties to this Agreement, the non-prevailing party will pay all expenses, including reasonable attorney fees

  

 8 

	 	    	incurred by the prevailing party. For purposes of this Agreement, “prevailing party” means the party that prevails either affirmatively or by means of a successful
defense with respect to claims having the greatest value or importance as reasonably determined by the court with jurisdiction over the matter. 

  

	 	11.7	Entire Agreement; Conflict. This Agreement supersedes all prior agreements between the parties with respect to its subject matter and is intended as a complete and
exclusive statement of the substantive terms contained in this Agreement. If there is any conflict between the terms of this Agreement and any similar provisions in any other agreement between Employee and the Company, the terms of this Agreement
will govern. 

  

	 	11.8	Notices. All notices or other communications required or permitted under this Agreement must be in writing and will be deemed to have been duly given (a) when
delivered personally; (b) upon confirmation of receipt when such notice or other communication is sent by facsimile; (c) one day after delivery to an overnight delivery courier; or (d) on the fifth day following the date of deposit in the United
States mail if sent first class, postage prepaid, by registered or certified mail. The addresses for such notices will be as follows: 

  
 To the Company: 
 Daystar Technologies, Inc.

 900 Golden Gate Terrace, Suite A 
 Grass Valley, California 95945 
 Facsimile: 530-271-5558 
 Attention: Dr. John R. Tuttle 
  
 To Employee: 
 To the address or facsimile set
forth below Employee’s signature. 
  
 Any party may, by
notice to the other, change its, his or her address for receipt of notices under this Agreement. 
  

	 	11.9	Interpretation. Caption headings are for convenience of reference only and will not limit or otherwise affect the text of those sections. The words “includes” and
“including” are not limiting in any way and mean, “includes or including without limitation.” The word “person” includes individuals, corporations, partnerships, limited liability companies, co-operatives, associates
and other natural and legal persons. The term “and/or means each and all of the persons, words, provisions or items connected by that term; i.e., it has a joint and several meaning. Section and other headings in this Agreement are for reference
purposes only, and are in no way intended to describe, interpret, define or limit the scope or extent of any provision hereof. Both parties have had the chance to have this Agreement reviewed by an attorney; therefore, this Agreement will not be
construed against the drafter of this Agreement. 

  

 9 

	EMPLOYEE:	 	COMPANY:
		
	 /s/    John R.
Tuttle        

 Signature
	 	 /s/    Stephen Aanderud

			
	 John R. Tuttle         

	 	 By:
	 	 Stephen Aanderud

	 Print Name
	 	 Title:
	 	 Chief Financial Officer and Secretary

			
	 November 1, 2003

 Date
	 	 	 	 
				
	 Address:
	 	 560 E. Brood Street

	 	 	 	 
			
	 Nevada City, CA 95959

	 	 	 	 

  
  
  
  
  

 10 

 Exhibit A 
 Prior Inventions of Employee 
  

 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]