Document:

Unassociated Document

    HARRIS
& HARRIS GROUP, INC.

    2006
EQUITY INCENTIVE PLAN

    FORM
OF

    NON-QUALIFIED
STOCK OPTION AGREEMENT

    

    

    THIS
NON-QUALIFIED STOCK OPTION AGREEMENT (the "Agreement"), dated as of
____________, 20__, is made between Harris & Harris Group, Inc., a
corporation organized under the laws of the State of New York (the "Company"),
and _________________ (the "Optionee").

    

    WHEREAS,
the Company has adopted the Harris & Harris Group, Inc., 2006 Equity
Incentive Plan (the "Plan"), pursuant to which options may be granted to
purchase Stock;

    

    WHEREAS,
the Company desires to grant to the Optionee a non-qualified stock option (or
"NQSO") to purchase the number of shares of Stock provided for
herein;

    

    NOW,
THEREFORE, in consideration of the recitals and the mutual agreements herein
contained, the parties hereto agree as follows:

    

    Section
1.              Grant of Option

     

    (a)           Grant of
Option.  The Company hereby grants to the Optionee an Option to
purchase ______ shares of Stock on the terms and conditions set forth in this
Agreement and as otherwise provided in the Plan.  The Option is not intended to be treated,
and shall not be construed, as an ISO.

     

    (b)           Incorporation of
Plan.  The provisions of the Plan are hereby incorporated
herein by reference.  Except as otherwise expressly set forth herein,
this Agreement shall be construed in accordance with the provisions of the Plan
and any capitalized terms not otherwise defined in this Agreement shall have the
definitions set forth in the Plan.  The Board shall have final
authority to interpret and construe the Plan and this Agreement and to make any
and all determinations under them, and its decision shall be binding and
conclusive upon the Optionee and his/her legal representative in respect of any
questions arising under the Plan or this Agreement.  To the extent
that the Committee has been given the authority to administer and interpret the
Plan, the Committee shall also have all of the authority otherwise granted to
the Board under this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
2.              Terms and Conditions of
Option

     

    (a)           Exercise
Price.  The price at which the Optionee shall be entitled to
purchase shares of Stock upon the exercise of all or any portion of the Option
shall be $______ per share.

     

    (b)           Expiration Date. The Option
shall expire at the close of business on the ______ anniversary of the date
of this Agreement.

     

     (c)           Exercisability of
Option.  Subject to the other terms of this Agreement regarding the
exercisability of the Option, the Option shall vest and become
exercisable in accordance with the schedule set forth below for the
cumulative percentages of Stock subject to the Option set forth below; provided,
however, that the Option shall become fully vested and exercisable (1) when the
market price of the shares of Stock reaches $_____ per share at the close of
business on three consecutive trading days on the Nasdaq Global Market, or (2)
when the Board of Directors accepts an offer for the sale of substantially all
of the Company’s assets; and provided, further, that the Optionee is
employed by the Company as of each such date:

     

    
      
        
          
            	
                    Date

                  	
                    Percentage of Shares

                  
	
                    ______________

                  	
                    _____

                  
	
                    ______________

                  	
                    _____

                  
	
                    ______________

                  	
                    _____

                  
	
                    ______________

                  	
                    _____

                  

          

        

      

    

     

    The Board
may, but shall not be required to, provide at any time for the acceleration of
the schedule set forth above.

     

    (d)           Method of
Exercise.  The Option may be exercised only by written notice
in such form as the Company may adopt from time to time, delivered in person or
by mail in accordance with Section 3(a) and accompanied by payment therefor or
pursuant to such other procedure as the Company may adopt from time to
time.  The purchase price of the shares of Stock shall be paid to the
Company (i) in cash or its equivalent, (ii) to the extent permitted by law, by a
"broker cashless exercise" procedure approved by the Board, or (iii) by a
combination of the foregoing methods.  If requested by the Board, the
Optionee shall deliver this Agreement evidencing the Option to the Chief
Compliance Officer of the Company who shall endorse thereon a notation of such
exercise and return such Agreement to the Optionee.  A minimum of 100
shares of Stock must be purchased upon the exercise of the Option unless a
lesser number of shares of Stock so purchased constitutes the total number of
shares of Stock then purchasable under the Option.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (e)           Exercise Following Termination of
Employment.  Subject to Section 2(g), in the event that the
Optionee ceases to be employed by the Company, that portion of the Option that
is not then exercisable shall immediately terminate and that portion of the
Option that is exercisable at the time of the Optionee's termination of
employment with the Company shall terminate as follows:

     

    (i)           If
the Optionee's termination of employment is due to his/her death or disability,
as determined by the Board, the Option (to the extent exercisable at the time of
the Optionee's termination) shall be exercisable for a period of six months following such
termination of employment, and shall thereafter terminate;

     

    (ii)           If
the Optionee's termination of employment is by the Company or an Affiliate for
Cause (as defined below), the Option shall terminate on the date of the
Optionee's termination;

     

    (iii)           If
the Optionee voluntarily terminates his/her employment (other than by
retirement), the Option (to the extent exercisable at the time of the Optionee's
termination) shall be exercisable for a period of 90 days follow­ing such
termination of employment, and shall thereafter terminate; and

     

    (iv)           If
the Optionee (1) voluntarily terminates his/her employment, (2) is an "Entitled
Retiree" within the meaning of the Company's retiree medical plan as in effect
from time to time and (3) executes a post-termination non-solicitation agreement
in a form reasonably acceptable to the Company, the Option (to the extent
exercisable at the time of the Optionee's termination) shall remain exercisable
until the expiration of its term set forth in Section 2(b); and

     

    (v)           If
the Optionee's termination of employment is for any other reason, the Option (to
the extent exercisable at the time of the Optionee's termination) shall be
exercisable for a period of 90 days following such termination of employment,
and shall thereafter terminate.

     

    For
purposes of this Agreement, "Cause" shall have the meaning ascribed to such term
in the Optionee's individual employment, severance or consulting agreement with
the Company or, in the absence of any such agreement, "Cause" means (i) that the Optionee has materially
failed to perform the duties and responsibilities of his or her position with
the Company for reasons other than disability or has been insubordinate; (ii)
that the Optionee has violated any securities law or regulation, been convicted
of a felony or a crime involving moral turpitude (regardless of whether
involving the Company) or has not complied to a significant degree with any
material policy of the Company; or (iii) that the Optionee has committed any act
of fraud, embezzlement, or similar conduct against the Company or any of its
shareholders constituting dishonesty, intentional breach of fiduciary
obligation, or intentional and material wrongdoing or gross misfeasance or that
results in a material economic detriment to the assets, business or prospects of
the Company.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Notwithstanding
the foregoing, no provision in this Section 2(e) shall extend the exercise
period of an Option beyond its original term set forth in Section
2(b).

     

    (f)           Nontransferability.  The
Option shall not be transferable by the Optionee other than by will or the laws
of descent and distribution.

     

    (g)           Rights as a
Stockholder.  The Optionee shall not be deemed for any purpose
to be the owner of any shares of Stock subject to the Option unless, until and
to the extent that (i) the Option shall have been exercised pursuant to its
terms, (ii) the Company shall have issued and delivered to the Optionee the
shares of Stock for which the Option shall have been exercised, and (iii) the
Optionee's name shall have been entered as a stockholder of record with respect
to such shares of Stock on the books of the Company.

     

    (i)           Income Taxes.  The
Company may, in its discretion, require that the Optionee pay to the Company at
or after (as determined by the Board) the time of exercise of any portion of the
Option any such additional amount as the Company deems necessary to satisfy its
liability to withhold federal, state or local income tax or any other taxes
incurred by reason of the exercise or the transfer of shares of Stock
thereupon.

     

    Section
3.              Miscellaneous

     

    (a)           Notices. Unless otherwise
determined by the Board, any and all notices, designations, consents, offers,
acceptances and any other communications provided for herein shall be given in
writing and shall be delivered either personally or by registered or certified
mail, postage prepaid, which shall be addressed, in the case of the Company to
the General Counsel of the Company at the principal office of the Company and,
in the case of the Optionee, to Optionee's address appearing on the books of the
Company or to Optionee's residence or to such other address as may be designated
in writing by the Optionee.

     

    (b)           No Right to Continued Employment.
Nothing in the Plan or in this Agreement shall confer upon the Optionee
any right to continue in the employ of the Company or shall interfere with or
restrict in any way the right of the Company, which is hereby expressly
reserved, to remove, terminate or discharge the Optionee at any time for any
reason whatsoever, with or without Cause.  For purposes of this
Agreement, the terms "employ" and "employment" shall be interpreted as
applicable to the Optionee's service with the Company if the Optionee is a
non-employee director of the Company, or an advisor or consultant to the
Company.

     

    (c)           Bound by Plan.  By
signing this Agreement, the Optionee acknowledges that he/she has received a
copy of the Plan and has had an opportunity to review the Plan and agrees to be
bound by all the terms and provisions of the Plan.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (d)           Company
Policies.  By signing this Agreement, the Optionee acknowledges that
he/she is subject to the Company's (i) Code of Ethics Pursuant to Rule 17-J-1
and (ii) Stock Ownership Guidelines and that non-compliance with either such
policy may constitute Cause for the termination of the Optionee's employment
with the Company.

     

    (e)           Successors. The terms of this
Agreement shall be binding upon and inure to the benefit of the Company, its
successors and assigns, and of the Optionee and the beneficiaries, executors,
administrators, heirs and successors of the Optionee.

     

    (f)           Validity/Invalidity.  The
invalidity or unenforceability of any particular provision hereof shall not
affect the other provisions hereof, and this Agreement shall be construed in all
respects as if such invalid or unenforceable provision had been
omitted.

     

    (g)           Modifications.  No
change, modification or waiver of any provision of this Agreement shall be valid
unless the same be in writing and signed by the parties hereto.

     

    (h)           Entire Agreement. This
Agreement and the Plan contain the entire agreement and understanding of the
parties hereto with respect to the subject matter contained herein and therein
and supersede all prior communications, representations and negotiations in
respect thereto.

     

    (i)           Governing
Law.  This Agreement and the rights of the Optionee hereunder
shall be construed and determined in accordance with the laws of the State of
New York.

     

    (j)           Headings.  The
headings of the Sections hereof are provided for convenience only and are not to
serve as a basis for interpretation or construction, and shall not constitute a
part, of this Agreement.

     

    (k)           Counterparts.  This
Agreement 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.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

     

    IN
WITNESS WHEREOF, this Agreement has been executed and delivered by the parties
hereto on the ____ day of _________, 20__.

     

    

     

    HARRIS
& HARRIS GROUP, INC.

    

    By:
___________________________

    Its
____________________________

    

    

    [OPTIONEE]

    

    

    Signature:
______________________

    

    Printed
Name: ___________________

    

    Address:
_______________________

     

     ______________________________

    

    
      
        
        

      

      
        6Unassociated Document

    Exhibit
10.1b

     

    AKEENA
SOLAR, INC.

     

    2006
INCENTIVE STOCK PLAN

     

    NONQUALIFIED
STOCK OPTION AGREEMENT

     

    This
NONQUALIFIED STOCK OPTION AGREEMENT (the “Option Agreement”), dated as of the
_____ day of _______________, ______ (the “Grant Date”), is between Akeena
Solar, Inc., a Delaware corporation (the “Company”), and ____________________
(the “Optionee”), an officer, employee, director or consultant of the Company or
of a “Subsidiary,” as defined in Section 424(f) of the Internal Revenue Code of
1986, as amended (the “Code”).

     

    WHEREAS,
the Company desires to give the Optionee the opportunity to purchase shares of
common stock of the Company, par value $0.001 (“Stock”) in accordance with the
provisions of the Akeena Solar, Inc. 2006 Incentive Stock Plan (the “Plan”), a
copy of which is attached hereto;

     

    NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and
for other good and valuable consideration, the parties hereto, intending to be
legally bound hereby, agree as follows:

     

    1.           Grant of
Option.  The Company hereby grants to the Optionee the right
and option (the “Option”) to purchase all or any part of an aggregate of
________ shares of Stock.  The Option is in all respects limited and
conditioned as hereinafter provided, and is subject in all respects to the terms
and conditions of the Plan now in effect and as it may be amended from time to
time (but only to the extent that such amendments apply to outstanding
options).  Such terms and conditions are incorporated herein by
reference, made a part hereof, and shall control in the event of any conflict
with any other terms of this Option Agreement.  The Option granted
hereunder is intended to be a nonqualified stock option (“NQSO”) and not an
incentive stock option (“ISO”) as such term is defined in section 422 of
the Code.

     

    2.           Exercise
Price.  The exercise price of the Stock covered by this Option
shall be $_______ per share.  It is the determination of the committee
administering the Plan (the “Committee”) that on the Grant Date the exercise
price was not less than the greater of (i) 100% of the “Fair Market Value”
(as defined in the Plan) of a Common Share, or (ii) the par value of a
Common Share.

     

    3.           Term.  Unless
earlier terminated pursuant to any provision of the Plan or of this Option
Agreement, this Option shall expire five (5) years from the Grant Date (the
“Expiration Date”).  This Option shall not be exercisable on or after
the Expiration Date.

     

    Exercise of
Option.  The Options shall vest and become exercisable as to
one-third of the total amount of shares subject to the Option on each of the
first, second and third anniversaries of the date of grant, and subject to the
other terms and limitation of the Plan.  Once the Option becomes
exercisable, it will remain exercisable until it is exercised or until it
terminates.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    4.           Method of Exercising
Option.  Subject to the terms and conditions of this Option
Agreement and the Plan, the Option may be exercised by written notice to the
Company at its principal office, which is presently located at 16005 Los Gatos
Boulevard, Los Gatos, California 95032.  The form of such notice is
attached hereto and shall state the election to exercise the Option and the
number of whole shares with respect to which it is being exercised; shall be
signed by the person or persons so exercising the Option; and shall be
accompanied by payment of the full exercise price of such
shares.  Only full shares will be issued.

     

    The
exercise price shall be paid to the Company -

     

    (a)           in
cash, or by check or such other instrument as may be acceptable to the
Committee;

     

    (b)           through
the delivery of shares of Stock owned by the Optionee having a Fair Market Value
equal to the exercise price of the Option;

     

    (c)           in
the form of shares of Stock withheld by the Company from the shares of Stock
otherwise to be received with such withheld shares of Stock having a Fair Market
Value equal to the exercise price of the Option; or

     

    (d)           in
any combination of (a), (b), or (c) above.

     

    Upon
receipt of notice of exercise and payment, the Company shall deliver a
certificate or certificates representing the shares of Stock with respect to
which the Option is so exercised.  The Optionee shall obtain the
rights of a shareholder upon receipt of a certificate(s) representing such
shares of Stock.

     

    Such
certificate(s) shall be registered in the name of the person so exercising the
Option (or, if the Option is exercised by the Optionee and if the Optionee so
requests in the notice exercising the Option, shall be registered in the name of
the Optionee and the Optionee’s spouse, jointly, with right of survivorship) and
shall be delivered as provided above to, or upon the written order of, the
person exercising the Option.  In the event the Option is exercised by
any person or persons after the death or disability (as determined in accordance
with section 22(e)(3) of the Code) of the Optionee, the notice shall be
accompanied by appropriate proof of the right of such person or persons to
exercise the Option.  All shares of Stock that are purchased upon
exercise of the Option as provided herein shall be fully paid and
non-assessable.

     

    5.           Transferability of
Option.  This Option is not assignable or transferable, in
whole or in part, by the Optionee other than by will or by the laws of descent
and distribution.  During the lifetime of the Optionee, the Option
shall be exercisable only by the Optionee or, in the event of his or her
disability, by his or her guardian or legal representative.

     

    6.           Termination by Reason of
Death.  If the Optionee dies during his or her service and
prior to the Expiration Date, or if the Optionee’s service is terminated due to
disability, as described in Paragraph 8, or by reason of retirement, as
described in Paragraph 9, and the Optionee dies following his or her
termination of service but prior to the earlier of the Expiration Date or the
expiration of the period determined under Paragraph 8 or 9 (as applicable
to the Optionee), this Option may be exercised (to the extent of the number of
shares of Stock with respect to which the Optionee could have exercised it on
the date of his or her death) by the Optionee’s estate, personal representative
or beneficiary who acquired the right to exercise this Option by bequest or
inheritance or by reason of the Optionee’s death, at any time prior to the
earlier of (i) the Expiration Date or (ii) one year after the date of
the Optionee’s death. Any part of the Option that was not exercisable
immediately before the Optionee’s death shall terminate at that
time.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    7.           Termination by Reason of
Disability.  If the Optionee becomes disabled (as determined in
accordance with section 22(e)(3) of the Code) during his or her service and,
prior to the Expiration Date, the Optionee’s service is terminated as a
consequence of such disability, this Option may be exercised, to the extent of
the number of shares of Stock with respect to which the Optionee could have
exercised it on the date of such termination of service, by the Optionee or by
the Optionee’s legal representative, at any time prior to the earlier of
(i) the Expiration Date or (ii) three months after such termination of
service.  Any part of the Option that was not exercisable immediately
before the Optionee’s termination of service shall terminate at that
time.

     

    8.           Termination by Reason of
Retirement.  If the Optionee’s service with the Company or any
Subsidiary terminates by reason of Normal or Early Retirement (as such terms are
defined below), the Option may be exercised, to the extent of the number of
shares of Stock with respect to which the Optionee could have exercised it on
the date of such Retirement, at any time prior to the earlier of (i) the
Expiration Date or (ii) three months after such termination of
service.  Any part of the Option that was not exercisable immediately
before the Optionee’s termination of service shall terminate at that
time.  For purposes of this Paragraph, “Normal Retirement” shall mean
retirement from active employment with the Company or any Subsidiary on or after
the normal retirement date specified in the applicable Company or Subsidiary
pension plan or if no such pension plan exists, age 65, and “Early Retirement”
shall mean retirement from active employment with the Company or any Subsidiary
pursuant to the early retirement provisions of the applicable Company or
Subsidiary pension plan or if no such pension plan exists, age 55.

     

    9.           Other Termination of
Service.  If the Optionee’s service with the Company and all
Subsidiaries is terminated for any reason other than death, as described in
Paragraph 7, disability, as described in Paragraph 8, or Normal or Early
Retirement, as described in Paragraph 9, this Option shall thereupon
terminate immediately, except that the portion of the Option that was
exercisable on the date of such termination of service may be exercised at any
time prior to the earlier of (i) the Expiration Date or (ii) thirty
days after such termination of service if the Optionee’s service with the
Company or any Subsidiary was terminated by the Company or such Subsidiary
without cause (the determination as to whether termination was for cause to be
made by the Committee). The transfer of the Optionee’s service from the Company
to a Subsidiary, or vice versa, or from one Subsidiary to another, shall not be
deemed to constitute a termination of service for purposes of the Option
Agreement.

     

    10.           Withholding of
Taxes.  The obligation of the Company to deliver Stock upon the
exercise of this Option shall be subject to applicable federal, state and local
tax withholding requirements.  If the exercise of the Option is
subject to the withholding requirements of applicable federal, state and/or
local tax law, the Optionee, subject to the provisions of the Plan and such
additional withholding rules (the “Withholding Rules”) as shall be adopted by
the Committee, may satisfy the withholding tax, in whole or in part, by electing
to have the Company withhold (or by returning to the Company) shares of Stock,
which shares shall be valued, for this purpose, at their Fair Market Value on
the date the amount attributable to the exercise of the Option is includable in
income by the Optionee under section 83 of the Code.  Such
election must be made in compliance with and subject to the Withholding Rules,
and the Company may limit the number of withheld shares to the extent necessary
to avoid adverse accounting consequences.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    11.           Governing
Law.  This Option Agreement shall be governed by the applicable
Code provisions to the maximum extent possible.  Otherwise, the laws
of the State of Delaware (without reference to the principles of conflict of
laws) shall govern the operation of, and the rights of the Optionee under, the
Plan and Options granted thereunder.

     

    IN
WITNESS WHEREOF, the Company has caused this Nonqualified Stock Option Agreement
to be duly executed by its duly authorized officer, and the Optionee has
hereunto set his or her hand and seal, all as of the date set forth
below.

     

    
      
        
          
            
              
                	 
      	 	
                        AKEENA
      SOLAR, INC.

                      
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                        Date

                      	 	
                        By:

                      
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	
                        Optionee

                      

              

            

          

        

      

    

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    AKEENA
SOLAR, INC.

     

    2006
INCENTIVE STOCK PLAN

     

    Notice of
Exercise of Nonqualified Stock Option

     

    I hereby
exercise the nonqualified stock option granted to me pursuant to the
Nonqualified Stock Option Agreement dated as of ____________________, ______, by
Akeena Solar, Inc. (the “Company”), with respect to the following number of
shares of the Company’s common stock (“Shares”), par value $0.001 per Share,
covered by said option:

     

    
      
        
          	 	
                  Number
      of Shares to be purchased:

                	
                  _______

                
	 	
                  Purchase
      price per Share:

                	
                  $_______

                
	 	
                  Total
      purchase price:

                	
                  $_______

                

        

      

    

    

    
      
        
          
            
              
                	
                        ___

                      	
                        A.

                      	
                        Enclosed
      is cash, check, or any other instrument that is acceptable to the Company
      in the amount of $__________ in full/partial [CIRCLE ONE] payment for such
      Shares;

                      
	 	 	 
	
                        and/or

                      
	 
	
                        ___

                      	
                        B.

                      	
                        Enclosed
      is/are Share(s) with a total fair market value of $_________ on the date
      hereof in full/partial [CIRCLE ONE] payment for such
    Shares;

                      
	 	 	 
	
                        and/or

                      
	 
	
                        ___

                      	
                        C.

                      	
                        I
      elect to satisfy the payment for Shares purchased hereunder by having the
      Company withhold newly acquired Shares pursuant to the exercise of the
      Option.

                      
	 	 	 

              

            

          

        

      

    

    Please
have the certificate or certificates representing the purchased Shares
registered in the following name or
names*:_________________________________________________; and sent to
_______________________________________________________________________.

     

    

     

    
      
        
          	
                  Dated:, ____________________,
    2008

                	 
      
	 
      	
                  Optionee’s
      Signature

                

        

      

    

    

    *  Certificates
may be registered in the name of the Optionee alone or in the joint names (with
right of survivorship) of the Optionee and his or her spouse.

     

     

     

     

    5

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