Document:

EXHIBIT
10.1

    

    SUMMARY
OF 2010 ANNUAL INCENTIVE AND PROFIT SHARING PLANS

    

    2010 Annual Incentive
Plan

    

    Under the
2010 Annual Incentive Plan (the “Annual Incentive Plan”), the Company’s
director-level team members, officers and named executive officers can earn
annual incentive cash compensation based upon performance against
pre-established financial targets.  The financial targets include
threshold, target and maximum level bonus objectives for the executive
officers.  The amount of the award of any cash bonuses under the
Annual Incentive Plan for fiscal 2010 performance will be based on our
achievement of specified results with respect to corporate operating income and
revenue targets for fiscal 2010.

    

    If the
threshold, target or maximum performance objectives are met, participants will
receive a bonus payment under the Annual Incentive Plan, with the specific
amount that such participant receives dependent on company performance and, for
certain named executive officers, business unit performance.  However,
a business unit performance payment will only be made if both corporate
operating income and revenue targets are achieved.

    

    The
amount that could be received by our President and Chief Executive Officer under
the Annual Incentive Plan ranges from 0% (assuming the threshold objectives were
not met) and 60% of base salary, with a target bonus amount of 50% of base
salary.  For each of the other named executive officers, the amount
such officers could receive under the Annual Incentive Plan ranges from 0% to
48% of base salary, with a target bonus amount of 40% of base
salary.

    

    The
financial targets and weightings relevant to the cash incentive determination
for fiscal 2010 for each of the named executive officers will be as
follows:

     

    
      
        	
                Name

              	 	
                Title

              	 	
                Financial Targets

              
	
                Harry
      R. Rittenour

              	 	
                President
      and Chief

              	 	
                Company
      Operating Income(50%)

              
	 
      	 	
                Executive
      Officer

              	 	
                Company
      Revenue (50%)

              
	 
      	 	 
      	 	 
      
	
                John
      H. Lowry, III

              	 	
                Vice
      President, Chief

              	 	
                Company
      Operating Income(50%)

              
	 
      	 	
                Financial
      Officer

              	 	
                Company
      Revenue (50%)

              
	 
      	 	 
      	 	 
      
	
                Paul
      J. Eckhoff

              	 	
                Senior
      Vice President

              	 	
                Company
      Operating Income(20%)

              
	 
      	 	
                Commercial
      Products

              	 	
                Company
      Revenue (20%)

              
	 
      	 	
                Business
      Unit

              	 	
                CBU
      Revenue (60%)

              
	 
      	 	 
      	 	 
      
	
                Mark
      S. Hoefing

              	 	
                Senior
      Vice President

              	 	
                Company
      Operating Income(20%)

              
	 
      	 	
                Industrial
      Business

              	 	
                Company
      Revenue (20%)

              
	 
      	 	
                Unit

              	 	
                IBU
      Revenue (60%)

              

      

       

    

    After
completion of fiscal 2010, the Management Development, Compensation and Stock
Option Committee (the “Committee”) will determine the extent to which the
specified goals relating to the financial targets have been achieved and will
determine the actual amounts to be paid.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    The
Committee reserves the right, in its sole and absolute discretion, to change the
eligibility for participation under the Annual Incentive
Plan, to revise, eliminate or otherwise modify any performance targets, to
modify any participant’s target bonus, or otherwise to increase, decrease or
eliminate any incentive payouts to any participant under the Annual Incentive
Plan, regardless of the level of performance targets that have been achieved,
including to provide for no incentive payout to a participant even though one or
more performance targets have been achieved.

    

    Participating
team members under the Annual Incentive Plan must be employed on or before
December 31, 2009 in order to be eligible.  Those hired between July
1, 2009 and December 31, 2009 will receive a pro-rata portion of their
individual participation level.  Participating team members must be
employed by the Company at the date of the payment in fiscal 2011.

    

    2010 Profit Sharing
Plan

    

    Under the
2010 Profit Sharing Plan (the “Profit Sharing Plan”), most of the Company’s team
members below the director level can earn a profit sharing cash payment based
upon pre-established financial targets.  The financial targets include
threshold, target and maximum level bonus objectives for team
members.  The amount of the award of any cash bonuses under the Profit
Sharing Plan for fiscal 2010 performance will be based on our achievement of
specified results with respect to corporate operating income targets for fiscal
2010.

    

    Team
member participation levels are stated as a percentage of base
salary.  There is a cap on the amount of the bonus that could be
earned.  The profit sharing pool will be distributed pro rata
according to each team member’s predetermined participation level.

    

    After
completion of fiscal 2010, the Committee will determine the extent to which the
specified goals relating to the financial targets have been achieved and will
determine the actual amounts to be paid.

    

    The
Committee reserves the right, in its sole and absolute discretion, to change the
eligibility for participation under the Profit Sharing Plan, to revise,
eliminate or otherwise modify any performance targets, to modify any
participant’s target bonus, or otherwise to increase, decrease or eliminate any
incentive payouts to any participant under the Profit Sharing Plan, regardless
of the level of performance targets that have been achieved, including to
provide for no incentive payout to a participant even though one or more
performance targets have been achieved.

    

    Participating
team members under the Profit Sharing Plan must be employed on or before
December 31, 2009 in order to be eligible.  Those hired between July
1, 2009 and December 31, 2009 will receive a pro-rata portion of their
individual participation level.  Participating team members must be
employed by the Company at the date of the payment in fiscal 2011.VU1
CORPORATION

    

    AMENDMENT
NO. 1

    TO

    SECURED
CONVERTIBLE GRID PROMISSORY NOTE

    

    This
Amendment No. 1 to Secured Convertible Grid Promissory Note (this “Amendment”) is entered into as
of August 31, 2009 and amends that certain Secured Convertible Grid Promissory
Note dated June 8, 2009 (the “Original Note”) issued by Vu1
Corporation, a California corporation (the “Company”), to Full Spectrum
Capital LLC, a Washington limited liability company (the “Holder”). All capitalized
terms used in this Amendment but not defined herein have the meanings ascribed
to them in the Original Note.

    

    In
consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

    

    1.           Extension
of Time for Making Advances and Other Dates.  The Company and
Holder desire to extend the time for Holder to make additional advances to the
Company from August 31, 2009 to October 31, 2009, and to make corresponding
changes to other dates in the Original Note with respect to quarterly interest
payments, Maturity Date, Second Loan and right of first
refusal.  Accordingly, the following sections of the Original Note are
hereby amended as follows:

    

    (a)           The
third sentence of Section 1 (Advances; Schedule A) is amended to read as follows
(changes marked):

    

    “The
Holder may make one or more advances to the Company under this Note at any time
on or prior to October August 31, 2009,
in such amounts and at such times as it determines; provided, however, that each
such advance shall be in a minimum amount of $250,000.”

    

    (b)           Section
2(b) (Quarterly Payments of Interest) is amended to read as follows (changes
marked):

    

    “The
Company shall make quarterly payments of accrued and unpaid interest only,
beginning on December October 1, 2009,
and on the first business day of each consecutive calendar quarter
thereafter.”

    

    (c)           Section
3(a) (Maturity Date) is amended to read as follows (changes
marked):

    

    “Unless
earlier paid in full or converted pursuant to the terms of this Note, the entire
unpaid principal sum of this Note, together with accrued and unpaid interest
thereon, shall become immediately due and payable on the 18-month anniversary of
(i) August 31,
2009, in the event Holder advances less than $5,000,000 under this Note by
August 31, 2009 or (ii) October 31, 2009, in the event Holder
advances $5,000,000 or more under this Note by August 31, 2009, or
(iii) such later
date as determined by mutual agreement of the Company and Holder (the “Maturity Date”).”

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

     

    (d)           The
first sentence of Section 11 (Second Loan) is amended to read as follows
(changes marked):

    

    “In the
event Holder advances at least $3,000,000 to the Company by October
August 31, 2009
pursuant to this Note, Holder will have the transferable and assignable right to
make a “Second Loan” to the Company.”

    

    (e)           The
last sentence of Section 12 (Right of First Refusal) is amended to read as
follows (changes marked):

    

    “The
rights granted under this Section terminate automatically in the event Holder
does not advance a minimum of $3,000,000 under this Note by October
August 31, 2009,
(b) Holder does not provide notice to the Company of its commitment to fund a
minimum of $5,000,000 pursuant to the Second Loan by January 15, 2010, or (c)
Holder does not fund a minimum of $5,000,000 pursuant to the Second Loan by
February 28, 2010.”

    

    2.           Change in
Conversion Price.  Section 4(a) (Conversion Right) is hereby
amended to read as follows (changes marked):

    

    “The
Holder shall have the right, but not the obligation, from time to time and at
any time, to convert all or any portion of the then aggregate outstanding
principal amount of this Note (plus, with the consent of the Company, accrued
and unpaid interest) into fully-paid and non-assessable shares of common stock
of the Company, at a conversion rate equal to the lesser of
(i) $0.40 per share or (ii), if the Company completes an equity
or convertible debt financing approved by the Board, the per share purchase
price or conversion price in such financing.”

    

    3.           Effect of
Amendment.  Except as amended by this Amendment, the terms of
the Original Note remain in full force and effect as though set forth in full
herein.

    

    4.           Counterparts.  This
Amendment may be executed in counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same
instrument.  Facsimile execution and delivery of this Amendment, or
delivery by electronic mail in .PDF format, is legal, valid and binding for all
purposes.

    

     

    [Remainder
of Page Intentionally Left Blank; Signature Page Follows.]

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

    EXECUTED
as of the date and year first written above.

    

    COMPANY:

     

    
      
        	 	VU1
      CORPORATION	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Richard
      Herring	 
	 	 	Richard
      Herring	 
	 	 	Chief
      Technology Officer	 
	 	 	 	 

      

    

     

    HOLDER:

     

    
      
        	 	FULL
      SPECTRUM CAPITAL LLC	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ R.
      Gale Sellers	 
	 	 	R.
      Gale Sellers	 
	 	 	Manager	 
	 	 	 	 

      

    

     

    
      
         

      

      
        -3-

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